A mother-and-daughter duo, claiming to possess fortune-telling and feng shui expertise, have been charged with allegedly orchestrating a nearly A$70 million ($46 million; £35 million) scam targeting “vulnerable” Vietnamese individuals in Australia. The arrests were made in Sydney’s affluent Dover Heights suburb on Wednesday.
The 53-year-old mother and her 25-year-old daughter are accused of playing key roles in a “highly sophisticated” fraud and money laundering syndicate. Authorities allege that the mother manipulated victims into taking out loans by promising the arrival of a “billionaire” in their future, while keeping a portion of the money for herself. She has been denied bail and is set to appear in court on Thursday, whereas her daughter was granted bail with a court appearance scheduled for January.
Unveiling a Complex Fraud Network
Police describe the mother as a trusted figure within her community, leveraging her position as a fortune teller to gain the confidence of clients, some of whom were in financial distress. She would predict the intervention of a billionaire benefactor, urging them to secure loans to expedite this supposed aid.
As part of the ongoing investigation, authorities have frozen approximately A$15 million in assets, supplementing the A$60 million already seized since the probe began last year. The operation, known as Strike Force Myddleton, was initially launched to investigate fraudulent car financing involving “ghost cars”—luxury vehicles that did not exist.
“What began as an investigation into fraudulent car financing has expanded into uncovering one of the most sophisticated financial crime syndicates I have seen in my career at the helm of the Financial Crimes Squad,” said Det Supt Gordon Arbinja, commander of the financial crimes squad.
The Penthouse Syndicate Connection
According to the Sydney Morning Herald, the mother-and-daughter pair are linked to the so-called Penthouse Syndicate, named after the alleged ringleader’s residence in an A$18 million penthouse in Sydney. Police claim the syndicate defrauded major Australian banks of up to A$250 million, with allegedly corrupt bank staff facilitating loans to acquire multiple properties in Sydney.
More than a dozen individuals have been arrested and charged with various offenses, including fraud and money laundering, in what is considered one of Australia’s largest financial crime cases. Police anticipate further arrests, focusing on the “professional facilitators” within the criminal network, such as lawyers, accountants, and property developers.
Historical Context and Implications
This case highlights a growing trend of complex financial frauds exploiting loopholes in banking systems and the vulnerability of individuals seeking quick financial solutions. Similar scams have surfaced globally, where con artists exploit cultural beliefs and personal crises to orchestrate large-scale frauds.
Experts warn that such schemes often thrive due to a combination of trust, desperation, and the allure of quick wealth. The involvement of professional facilitators further complicates the detection and prevention of these crimes, as they use their expertise to navigate and manipulate financial systems.
By the Numbers: The Australian Banking Association reports that fraud costs the Australian economy billions annually, with financial institutions ramping up efforts to enhance security and prevent such crimes.
Looking Ahead
The Australian authorities’ crackdown on this syndicate underscores a commitment to dismantling organized financial crime networks. As the investigation progresses, it is expected to reveal more about the syndicate’s operations and the extent of its impact on the financial sector.
Moving forward, the case could prompt tighter regulations and oversight within the banking industry, as well as increased awareness among consumers about the risks of financial scams. The outcome of the ongoing legal proceedings will likely set a precedent for how similar cases are handled in the future.
