Construction Boss Jailed for $10M ATO Fraud Using Shell Companies

December 6, 2024
Construction Boss Jailed for $10M ATO Fraud Using Shell Companies
  • The conspirators provided employees to major construction firms, including Multiplex, and dissolved companies when faced with tax scrutiny.

  • Construction boss George Alex has been sentenced to nine years and three months in prison for his central role in a conspiracy to defraud the Australian Taxation Office (ATO) out of over $10 million.

  • The fraud scheme, which operated from 2018 to 2020, involved creating shell companies to pay workers, allowing the group to evade more than $10 million in pay-as-you-go withholding tax.

  • The Crown described Alex's actions as 'lengthy, persistent and calculated,' emphasizing his critical role in executing the fraud.

  • Justice Desmond Fagan condemned the fraud as a significant offense against taxpayers who contribute lawfully to public services.

  • The judge highlighted that it was inconceivable for the co-conspirators to act without Alex's agreement and instructions, underscoring his dominant role in the scheme.

  • Alex will serve a non-parole period of six years and two months, while his four co-conspirators received sentences ranging from five to eight and a half years.

  • The operation was run through a labor-hire business secretly owned by Alex, who was an undischarged bankrupt.

  • Loccisano and Bryers received sentences of eight and a half years with a non-parole period of six years, while Kirschberg and McAndrew were sentenced to eight years with a non-parole period of five and a half years.

  • Alex received significant criminal proceeds, including $1 million transferred to a personal company, $150,000 in rental payments for his home, and $74,000 for a Range Rover for his wife.

  • During sentencing, the judge noted that none of the conspirators showed remorse for their actions.

  • The trial lasted six months and cost taxpayers $6 million in legal assistance for four of the offenders.

Summary based on 2 sources


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Sources

‘No remorse’: George Alex jailed over $10 million tax fraud

Construction boss slammed for $10m tax scam

news.com.au — Australia’s leading news site • Dec 6, 2024

Construction boss slammed for $10m tax scam

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