By Riley Walter

Copyright brisbanetimes

Detectives this month arrested Li’s wife, Zhouyao Chen, and charged her with 11 counts of dishonestly obtaining financial advantage by deception, participating in a criminal group and contributing criminal activity. Li and Chen, who bought and sold almost $17 million worth of property across Sydney between 2019 and 2023, are expected to be charged with a raft of other offences as investigators unravel the syndicate’s alleged frauds.

Police allege the syndicate defrauded NAB using a number of steps that are commonly used by large-scale money-laundering operations, including purchasing an existing company registered with the Australian Securities and Investments Commission (ASIC), registering a new director – often one of the syndicate’s paid mules – and preparing fraudulent financial records for the companies.

Police say the syndicate has purchased several companies, which typically have a minimum of two years’ trading history and are often referred to as “shell companies”, for between $5000 and $10,000. The purchasing of the shell company is regarded as the most crucial step for the syndicate, which police say relies on the companies to facilitate fraudulent loans. Detectives allege the syndicate has used a shell company to purchase each of the properties linked to the frauds.

Investigators have linked at least 10 allegedly fraudulent companies to the NAB frauds, which were discovered after detectives from NSW Police’s financial crimes squad started investigating a $10 million fraud scheme involving the purchase of non-existent luxury cars in Sydney’s west. ASIC, the corporate watchdog, does not control the buying and selling of registered companies, nor does it prosecute individuals over the practice. There are more than 3.4 million companies currently registered with ASIC.

An ASIC spokesperson said the agency was aware of the alleged NAB fraud and had shared information with other regulators and law enforcement agencies.

“ASIC will review any evidence provided to us to support allegations that a company or its officeholders, or anyone is breaking laws overseen by ASIC,” they said.

ASIC can deregister a company if made aware that it has failed to meet the requirements set out under the Corporations Act. None of the companies police say are linked to the syndicate have been deregistered.

The NSW Crime Commission has seized $60 million worth of property, cars and luxury goods linked to the syndicate. The total alleged fraud linked to the Penthouse Syndicate is expected to grow as detectives discover more fraudulent loans. Police believe the syndicate’s mules are currently living in properties purchased through the frauds.

Li, 38, has been charged over $12.9 million worth of fraud, but police allege he was heavily involved in orchestrating a large portion of the alleged NAB fraud and has, through mules hired by the syndicate, bought several properties in the past two years.

Court documents detail how a senior banking manager at NAB allegedly approved a $2 million mortgage application and a business loan worth almost $500,000 after advising Li and other alleged syndicate members which documents would be needed to secure the loan. The mortgage was used to purchase Bondi Junction beauty salon, Beauty Pavilion.

Detectives allege Thi Ngo Hao Vu, the salon’s owner, submitted doctored financial records for her company, Prolific Path Pty Ltd, which holds Beauty Pavilion and a second salon, Bondi Nails. The fraudulent documents were used to inflate the company’s income, detectives allege.

According to court documents, to secure the business loan, Vu submitted fraudulent documents showing Prolific Path, and a second company she is director of, CF Group Global Pty Ltd, earned more than $2.1 million in 2022 and 2023. Records held by the Australian Taxation Office show CF Group Global recorded a loss of $276 in 2022, and did not lodge a tax return in 2023, according to court documents.

Via encrypted messages with Li, Vu and her husband, Ibnu Pratama, the banking manager, who cannot be named for legal reasons, advised the trio which documents were required to secure the loan and specific amendments to make to the proposed application. When he approved the $486,750 business loan, detectives allege, the banking manager knew the documents were fraudulent.

In August, Vu was charged with three counts of dishonestly obtaining advantage by deception, two counts of knowingly dealing with the proceeds of crime with intent to conceal and eight counts of using a false document to obtain financial advantage related to $3.2 million worth of allegedly fraudulent mortgage and business loans.

Pratama left Australia in December 2023, a week after detectives raided the home of one of he, Li and Vu’s business partners. He has not returned to the country. A warrant for his arrest was issued this month.

Chasing the money

While property linked to the syndicate, which is believed to have grown to dozens of members, continues to be seized, detectives believe it is unlikely the millions allegedly stolen by the group will be recovered.

In some instances, mortgages were allegedly taken out for properties that never existed, meaning the banks have no physical asset to repossess. Other times, detectives allege, real estate agents linked to the syndicate overvalued properties by millions of dollars to increase the mortgage syndicate members could take out, inflating the market in the process.

If NAB were to repossess the properties and sell them, Arbinja said, they would probably be left millions out of pocket.

While investigations into the NAB employees are ongoing, detectives are focusing on other “corrupted insiders”, including mortgage brokers, solicitors and real estate agents suspected of being on the syndicate’s payroll.

“There will be more people arrested,” Arbinja said.

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