Australian authorities have arrested a mother and daughter in Sydney, exposing a sophisticated financial crime network accused of defrauding vulnerable individuals and major financial institutions of hundreds of millions of U.S. dollars.
Police charged the 53-year-old mother with 39 offenses, including leading a criminal group and obtaining financial benefits by deception, while her 25-year-old daughter faces seven charges, including reckless dealing with proceeds of crime.
The arrests are part of a broader investigation into an intricate syndicate that allegedly engaged in large-scale fraud across personal, business, and home loans.
The mother, identified as a trusted fortune teller and feng shui expert within her community, allegedly swindled nearly $46.2 million from Vietnamese individuals in Australia facing financial hardship. She reportedly convinced victims to take out loans by promising them a “millionaire” future if they complied, then took a significant cut.
During early morning raids at the pair’s multi-million dollar mansion in Dover Heights last Wednesday, police seized financial documents, mobile phones, luxury handbags, approximately 40 grams of gold bullion valued at about $6,600, and casino chips worth around $4,356.
The arrests led to the freezing of an additional $9.9 million in assets, bringing the total frozen by investigators to roughly $49.5 million.
Superintendent Gordon Arbinja, Commander of the Financial Crimes Squad, stated that what began as an inquiry into fraudulent car loans “has expanded to expose one of the most complex financial crime networks I have ever seen in my career.”
The investigation, dubbed “Strike Force Myddleton,” initially targeted a group allegedly using stolen identities to secure loans for “ghost cars”—luxury vehicles that did not exist.
Authorities have linked the mother and daughter to a wider organization known as the “Penthouse Syndicate,” named after its alleged leader who resided in an approximately $11.9 million penthouse apartment in Sydney.
This syndicate is accused of defrauding major Australian banks of up to $165 million, with allegations of corrupt bank officials approving loans to facilitate the purchase of numerous properties across Sydney.
More than a dozen individuals have already been arrested and charged in connection with the case, which is considered one of Australia’s largest fraud operations. Police anticipate further arrests, including “professional enablers” such as lawyers, accountants, and property developers.
The mother was denied bail and appeared in court the day after her arrest, while her daughter was granted bail and is scheduled to appear in court in January.