Kingston man jailed after $13m tax fraud linked to transnational crime groups

Police said the fraud was linked to "transnational and serious organised crime groups" and the 43-year-old received nearly $137,000 for his role.

He was sentenced at the District Court of NSW on Friday to two and a half years in prison.

The AFP worked with the Australian Taxation Office in Operation Bordelon to investigate a "criminal syndicating allegedly using labour hire and payroll companies ... to defraud the Commonwealth".

Police alleged the syndicate controlled labour hire companies who undertook legitimate work in the building and construction industry.

The alleged syndicate siphoned off money that should have been paid by companies it controlled to the Australian Taxation Office, police said.

The funds were eventually transferred into bank accounts controlled by the syndicate.

In July 2020, police executed two search warrants in the ACT, 10 across Sydney and nine in south-east Queensland.

Twelve people were arrested on July 22, including people police said had been of long-term interest by serious organised crime investigators.

The Kingston man was issued a court attendance for one count of conspiring to dishonestly cause a loss to the Commonwealth, and one count of intentionally dealing with proceeds of crime, money or property worth $100,000 or more, police said in a July 2020 media release.

In November 2022, the man plead guilty to one count of aiding, abetting, counselling, or procuring the conduct of another person to commit an offence of dishonestly causing a loss to the Commonwealth.

He was sentenced to two years and six months' imprisonment with a non-parole period of one year and three months.

Twelve other people charged in relation to the investigation remain before the court, police said.

Defrauding the Commonwealth was a serious offence which undermined the government's ability to fund community services and social welfare, AFP Detective Superintendent Kristie Cressy said.

"Law-abiding Australians earning an honest day's living pay their taxes and contribute as good community citizens, while organised criminals seek to steal public money without regard for its impact on the community," she said.

"The AFP will continue to target organised crime where it hurts them the most, taking away their proceeds of crime."

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ATO Deputy Commissioner John Ford said police had a determined and continued focus on those who engage in financial crime.

"Criminals who engage in deliberate tax fraud and evasion activities like this are committing fraud against the entire community," he said.

"This outcome sends a clear message to those who think they can get away with financial crime. The Serious Financial Crime Taskforce has a dedicated team of experts across multiple agencies - we will find you, and hold you to account."