ATO closes $105m Plutus payroll case with final fraudster jailed
Sutherland man who pleaded guilty to dealing with the proceeds of crime gets four-and-a-half years.
The NSW Supreme Court has jailed the 15th and final member of the $105 million Plutus Payroll fraud after sentencing a Sutherland man to four-and-a-half years yesterday.
The man, 36, was a long-term friend of one of the main conspirators and operated a company that received funds from the scam, channelling money both to himself and his friend.
Last July he pleaded guilty to two counts of dealing with the proceeds of crime, including one count of handling money or property worth $1 million or more.
The Plutus Payroll fraud was exposed after a joint ATO and AFP investigation that became a key focus for the Serious Financial Crime Taskforce in 2017.
Operation Elbrus, as it was known, discovered a conspiracy to divert pay-as-you-go withholding tax and GST using a payroll company known as Plutus.
From 2014 to 2017, over $105 million was taken from legitimate clients attracted to the fee-free service and then laundered through second-tier companies.
The scheme ended with the arrests of many of the conspirators in May 2017, just under a month after the ATO put a garnishee order on Plutus Payroll’s accounts.
The Sutherland man, the last to be sentenced, follows 15-year jail terms handed down last August for the “architect” of the fraud, Adam Cranston, 36, and co-conspirator Jason Onley, 56.
Adam Cranston was the son of former ATO deputy commissioner Michael Cranston and his daughter Lauren was also involved, receiving a five-year sentence.
Chief of the ATO-led Serious Financial Crime Taskforce John Ford (pictured) said the sentencing brought an end to the biggest tax fraud in Australia’s history.
“It was a blatant attempt to rob the Australian community of money that could otherwise be invested in community services such as health and education,” he said.
“By working with partners across government agencies, the SFCT has an immense capability to share information and bring financial crime offenders to account, which has been demonstrated with Operation Elbrus.
“For those who think they can hide their illegal income, it’s only a matter of time before you are caught.”
AFP Detective Superintendent Kristie Cressy said investigations into tax fraud were extremely complex and lengthy and required highly skilled detectives, forensic accountants and technical experts.
“The AFP is proud of our dedicated members who worked diligently to dismantle this deceptive and elaborate scheme – without your work, these convictions would not be possible,” she said.
“Tax cheats cannot evade law enforcement forever and will not be rewarded for their greedy actions.”
This week’s sentence includes a non-parole period of two years and three months.
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