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The verdicts come after a six-year investigation by the AFP and ATO, plus an eight-month trial.
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Three men found guilty over watershed $105m tax fraud
09 March 2023
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Three men have been found guilty of a $105 million tax fraud following an eight-month trial in NSW Supreme Court.
Adam Cranston, son of former deputy tax commissioner Michael Cranston, Dev Menon and Jason Onley were found guilty of conspiring to defraud the Commonwealth and conspiring to deal with the proceeds of crime valued at $1 million or more.
The verdict followed a six-year investigation by the AFP with assistance from the ATO. AFP assistant commissioner Kirsty Schofield praised the dedication of the staff who pursued the syndicate.
“Taxation fraud investigations are inherently complex, but the scale and breadth of alleged criminal offending we identified in this matter made it a more challenging task,” said Ms Schofield.
“It is important we see matters such as this through to a final result in court and show that Australians will not tolerate this type of organised criminal activity that ultimately steals from us all.”
The ATO said the investigation, codenamed Operation Elbrus, exposed large-scale and organised tax fraud and money laundering conspiracies that used payroll service entities to divert monies payable as PAYGW tax and GST.
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The AFP alleged that Mr Cranston’s company, Plutus Payroll, was used to siphon off money that was intended to be paid on behalf of businesses to the ATO.
Acting deputy commissioner of the ATO and Serious Financial Crime Taskforce chief John Ford said the guilty verdicts sent a clear message to tax cheats: they will be caught.
“This isn’t the case of an accidental oversight – this was blatant and deliberate fraud that robbed the Australian community,” said Mr Ford.
“Tax crime is not victimless.”
“It takes money out of the hip pockets of the hip pockets of all Australians, reducing the budget that is available to fund community services that many people rely on.”
Mr Cranston, Mr Menon and Mr Onley face a maximum penalty of 25 years imprisonment. Five other participants in the fraud syndicate have already been sentenced, with several court matters still ongoing. They include:
- Simon Anquetil – one of the founders of Plutus Payroll and an architect of the fraudulent scheme, pleaded guilty to conspiring to defraud the Commonwealth and knowingly dealing with proceeds of crime with a value of $1 million or more. He was sentenced to seven years and six months in jail.
- Joshua Kitson – former general manager of Plutus Payroll pleaded guilty to conspiring to defraud the Commonwealth and was sentenced to four years and six months in jail.
- Aaron Paul – entered a guilty plea for dealing in proceeds of crime in excess of $100,00. He was sentenced to three years and four months in jail.
- Paul O’Leary – entered a guilty plea for negligently dealing in proceeds of crime with a value of $1 million or more. He was sentenced to jail for three years and three months which was later reduced on appeal to two years.
- Devyn Hammond – pleaded guilty to conspiring with others to defraud the Commonwealth and conspiring to knowingly deal in the proceeds of crime with a value of $1 million or more. She was sentenced to four years in jail.
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