BREAKING: Tax boss’ son arrested in ‘biggest fraud sting in history’

The son of an Australian tax boss has been arrested over his alleged involvement in a fraud syndicate that stole over $100 million in taxpayers money.

Australian Taxation Office Deputy Commissioner Michael Cranston will be charged over a major tax fraud allegedly involving his son.

Mr Cranston has been issued with a court attendance notice for allegedly publicly abusing his position as a public officer in a senior official of the Commonwealth, the Australian Federal Police said on Thursday.

Mr Cranston’s 30-year-old son Adam and eight other people have been arrested over a $165 million tax fraud investigation.

The arrests were made following an eight-month investigation, codenamed Operation Elbrus, with assistance from the ATO.

The scale of this allege fraud is unprecedented for the AFP,’ said Australian Federal Police Deputy Commissioner Operations Leanne Close on Thursday.

It is a significant fraud investigation, financial fraud criminal investigation, that the AFP has led since 2016.

‘It appears that his son has asked him to access some information potentially,’ Ms Close told reporters in Sydney.

‘We don’t believe that at this point that he had any knowledge of the actual conspiracy and the defrauding.’

Ms Close said assets seized in the past two days include 25 motor vehicles – luxury, vintage and racing vehicles – 18 residential properties, 12 motorbikes, in excess of 100 bank accounts and share trading accounts, two aircraft. firearms and jewellery, artwork, vintage wines and at least $1 million located in a safety deposit box.

Adam Cranston, 30, is due to face Sydney’s Central Local Court on Thursday morning charged with conspiracy to defraud the commonwealth.

He was arrested at Bondi during 27 raids on homes and businesses across Sydney on Wednesday.

A further six search warrants will be executed on Thursday, said the AFP.

Adam Cranston is described by theDaily Telegraph as an alleged ‘co-conspirator’ who used stolen funds to fuel an extravagant lifestyle of exclusive property, boats and a race team.

It is alleged the syndicate worked by taking investments from legitimate clients, funneling the money through a payroll company called Plutus, owned by a financial services firm SYNEP of which Cranston is co-chairman and managing director, and into a series of smaller companies.

These ‘second tier’ companies would pay an insufficient percentage of their required tax, as they believed the amounts were too small to warrant government attention, and the misappropriated tax would then line the pockets of the fraudsters.

Police will allege the syndicate manipulated people starting up the companies and would have all power over the businesses.

Cranston’s Bondi apartment was one of 27 residences raided by police on Wednesday, that led to eight other arrests.

Police seized Cranston’s custom Ford GT, among other property, which is believed to have been part of the race team he created that was named after his SYNEP finance firm.

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