CANBERRA, ACT, Sept. 22 -- Australian Federal Police issued the following media release:
This is a joint media release with Australian Federal Police and Australian Financial Security Authority.
A Melbourne lawyer has been sentenced today (22 September, 2025) to three years' imprisonment, with a non-parole period of one year, for perverting the course of justice and running an offshore scam to help his clients avoid bankruptcy.
The man, 68, used his law firm to create fictitious personal debts for two clients so they could gain a favourable outcome from bankruptcy and insolvency processes. The two clients were also involved in the scheme, while the man received a financial benefit for his business through the process.
To ensure his clients avoided bankruptcy and repaid cents-on-the-dollar to creditors, the man then initiated insolvency proceedings based on false and backdated documentation.
The fraudulent documents raised a false debt owed to a company based in Hong Kong, which the man controlled through a straw director. Insolvency proceedings were then initiated in the Victorian Supreme Court based on the fraudulent documents.
When the man's clients proposed a personal insolvency agreement (PIA) to creditors, the Hong Kong company had precedence as the largest creditor and the man could ensure the agreement was approved.
Once the PIA was approved, the clients avoided bankruptcy and negotiated payments to creditors that represented only small percentages of their 'debts'. The 'debts' paid to the Hong Kong company flowed back to the legal firm and the clients.
The man pleaded guilty on 7 November, 2024, to the following charges:
* One count of attempting to pervert the course of justice, contrary to section 320 of the Crimes Act (Vic). The maximum penalty for this offence is 25 years' imprisonment; and* Two counts of obtaining financial advantage by deception, contrary to section 82 of the Crimes Act(Vic). The maximum penalty for this offence is 10 years' imprisonment.
The two clients were charged with offences against the Bankruptcy Act in 2016. One client was fined and convicted, and the other client's offence was proven without conviction.
AFP Leading Senior Constable Anthony Martin said the convoluted fraud meant the man not only made money himself, he helped other business owners avoid paying their debts.
"This scheme was deliberately set out to exploit the financial and legal system," Leading Senior Constable Martin said.
"It disadvantages honest businesses and the broader Australian community.
"Anyone involving themselves in these types of practices is engaging in criminal behaviour and you will be caught."
Australian Financial Security Authority CEO Tim Beresford said people experiencing financial difficulty should ensure advice is from a qualified and trustworthy source.
"Unfortunately, there are people who deliberately manipulate the system to their personal advantage," he said.
"AFSA is committed to ensuring that individuals or businesses which cause harm and exploit the system are investigated and held accountable."
Disclaimer: Curated by HT Syndication.
