Accountants charged as mortgage fraud arrests hit 33

NSW Police's Financial Crimes Squad has charged an accounting firm director, two accountants and two alleged money mules over their part in a multi-million-dollar mortgage fraud and money laundering syndicate, bringing the total number charged under Strike Force Myddleton to 33 people.

The arrests were confirmed by NSW Police on Thursday and mark the latest escalation in what has become one of Australia's largest financial crime investigations.

About 6am on Wednesday 2 September 2026, strike force detectives, assisted by the Raptor Squad, executed search warrants in Smithfield and Cabramatta West, arresting two women accused of laundering proceeds tied to more than $18 million in fraudulent loans between them. Both were granted conditional bail, with court dates set for October.

About 1pm on Wednesday 9 September 2026, detectives returned with support from the NSW Crime Commission, the Australian Taxation Office (ATO), the Australian Securities and Investments Commission (ASIC) and the Tax Practitioners Board (TPB), executing a search warrant at an accounting firm in Bankstown. Three staff, including the firm's director, were arrested and charged with offences allegedly linked to more than $46 million in fraudulent loan applications combined. Two of the three were refused bail.

Detective Superintendent Gordon Arbinja, commander of the Financial Crimes Squad, said the arrests reflected the "ongoing and methodical work of Strike Force Myddleton”, adding that "the alleged conduct uncovered during this phase of the investigation shows a deliberate and coordinated effort to exploit loan systems, misuse personal information, and conceal the proceeds of crime through professional channels”.

ATO acting deputy commissioner Pennie Snowden said professional facilitators "undermine confidence in Australia's tax and superannuation systems”, while TPB chair Peter de Cure said any registered agent found assisting fraud "can expect the TPB to take strong regulatory action”, including possible removal from the profession.

Part of a widening broker and banking probe

This week's arrests continue a pattern of wider police action against mortgage fraud, including the recent arrests of a broker-banker couple over their alleged involvement in the so-called Penthouse Syndicate.

The escalating enforcement action has reverberated through the mortgage broking community.

Andrew Hu, described by police as a central figure in the Penthouse Syndicate, operated as a broker under sub-aggregator Hai Money's credit licence before his December 2025 arrest. That arrest triggered the chain of events that ended in Hai Money's total collapse earlier this year, after parent aggregator Finsure terminated its relationship with the sub-aggregator to distance itself from the group.

Regulators have separately flagged the broader scale of the problem. AUSTRAC has referred hundreds of matters linked to suspected mortgage fraud activity across the real estate and finance sectors.

Estimates put the current scale of mortgage fraud in the Australian financial system at around $4 billion.

Snowden today said: "Professional facilitators who assist others to commit financial crime undermine confidence in Australia's tax and superannuation systems and create an unfair advantage over the vast majority of taxpayers and advisers who do the right thing.

“The ATO is committed to identifying and addressing these behaviours wherever they occur. We work closely with law enforcement, regulators and industry partners to detect serious non-compliance and hold people accountable.

“If you've participated in mortgage fraud, false income declarations or related tax avoidance arrangements, now is the time to review your affairs."

NSW Police said anyone with information relevant to organised criminal activity should contact Crime Stoppers on 1800 333 000, noting that information is handled confidentially and should not be reported via police social media channels.