As part of Project Wickenby, the Australian Federal Police (AFP) says it has charged a man with conspiring to dishonestly cause a loss to the ATO and conspiring to deal in the proceeds of crime to the value of $63m, dismantling a multi-million dollar tax evasion and money laundering scheme.
The AFP said a 67-year-old man has been arrested and more than $40m of luxury assets have been restrained under Commonwealth proceeds of crime legislation. This action was part of a 7-month joint investigation between the AFP and ATO under Project Wickenby, and is the largest tax fraud investigation identified since it was launched in 2006.
The AFP and the ATO conducted 6 search warrants in NSW and Queensland on Tue 24.4.2012. The AFP said assets linked to the 67-year-old man and an unnamed business associate have been restrained, including prime real estate in Sydney and on the Gold Coast.
The AFP said it will be alleged in court that the accused, through a complex unit trust structure, over inflated the prices of Australian patents once transferred offshore, claiming corresponding depreciation expenses, and as a result received a benefit of approximately $63m over a 3-year period. It will be further alleged these funds were then laundered through an account in the UK and numerous accounts in Hong Kong before being transferred back into Australia.
Source: Joint AFP/ATO media release, 24 April 2012
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