In a case that could be one of the largest fraud and money-laundering syndicates in Australian history, a National Australia Bank (NAB) employee has been arrested and charged. The employee is accused of aiding the so-called Penthouse Syndicate in defrauding the bank of more than $150 million.
Timotius Donny Sungkar, a senior business banking manager at NAB, was taken into custody at his mother’s Bonnyrigg home early Thursday morning. The arrest marks a significant milestone in the investigation led by Strike Force Myddleton, which has been probing the syndicate’s alleged infiltration of Australia’s third-largest bank.
Inside the Penthouse Syndicate
A months-long investigation by the Herald into the Penthouse Syndicate has revealed allegations that the group used the illicit funds to build a luxury property empire across Sydney. Sungkar, 36, is accused of facilitating approximately $10 million in fraudulent business loans for the syndicate. He faces 19 charges, including participating in a criminal group and multiple counts of obtaining financial advantage by deception.
His arrest came just hours before NAB announced an annual profit of $7.1 billion. Sungkar has been refused bail and is set to appear in Fairfield Local Court. NAB’s chief executive Andrew Irvine addressed the scandal, stating, “Insider fraud is always difficult, we’ve got zero tolerance for it, and you can be sure that we’re looking at all of our processes and controls to make sure that those are strengthened as we go forward.”
Wider Implications and Investigations
Sungkar, who had been with NAB since 2008, was sacked following his arrest. Several other NAB employees are under investigation for allegedly facilitating loans for the syndicate under the direction of its alleged ringleader, Bing “Michael” Li. Although these employees have not been charged, they have been suspended pending further investigation.
Detectives have arrested 16 syndicate members since the inception of Strike Force Myddleton. The syndicate is believed to have defrauded multiple major banks and financiers of more than $250 million over the past seven years. Li, who remains in custody, has been charged with over 80 offenses related to fraud schemes, including a $12.9 million luxury car fraud.
Trust and Corruption in the Financial Sector
The syndicate’s alleged infiltration of NAB raises serious questions about the bank’s anti-corruption measures. The bank only became aware of the fraud’s scale through the police investigation. In July, NAB finalized an enforceable undertaking with AUSTRAC, agreeing to enhance its compliance with anti-money laundering laws.
Chris Sheehan, head of NAB’s group investigations and fraud business unit, emphasized the bank’s stance, stating, “There is absolutely no place for financial crime in our community, and we recognize the important role we play in the monitoring and reporting of suspicious activity.”
The Network of Corruption
Beyond NAB, detectives are investigating the syndicate’s suspected infiltration of other major banks. The NSW Crime Commission has seized $60 million worth of property, cars, and luxury goods linked to Li and other syndicate members. The investigation has also highlighted the role of corrupt professionals, including solicitors and real estate agents, in facilitating the syndicate’s operations.
The syndicate allegedly used fraudulent documents to inflate members’ income, enabling them to secure multimillion-dollar loans. Sungkar is accused of approving loans for shell companies linked to syndicate members, who then purchased properties on behalf of the group.
“At every single point of the transaction, there’s trust. Whether it’s a banker, a solicitor, a conveyancer, a valuer – there’s always an element of trust that the bank relies upon – and every single time, that trust has been violated,” said Detective Superintendent Gordon Arbinja.
Looking Ahead
As the investigation continues, more arrests and charges are expected. The case has drawn attention to the need for stronger anti-fraud measures within financial institutions. NAB has pledged to cooperate fully with the ongoing investigation and to strengthen its internal controls.
The unfolding case of the Penthouse Syndicate serves as a stark reminder of the vulnerabilities within the financial sector and the importance of robust oversight and compliance measures to prevent such large-scale frauds.
