Few stories have unsettled Australian broking like the alleged “Penthouse Syndicate”. We work with brokers every day, and many of them have asked us to set out what has actually been reported, without the rumour that has grown around it. This post sticks to what police, regulators and reputable media have published. Every person mentioned has only been charged. None has been convicted, and every one of them is presumed innocent unless and until a court finds otherwise.
How it started: “ghost cars” in 2024
NSW Police say the State Crime Command’s Financial Crimes Squad, with help from the NSW Crime Commission, set up Strike Force Myddleton in January 2024. It was formed to investigate a syndicate allegedly targeting Sydney car finance companies.
According to police, the group allegedly used stolen personal information to apply for loans for luxury “ghost cars” that did not exist. Detectives say the investigation later found the alleged syndicate had moved well beyond car finance, into large-scale personal, business and home loan fraud against several financial institutions.
July 2025: alleged ringleaders arrested
On 31 July 2025, the ABC reported that police had charged two Sydney men, aged 38 and 34, as alleged ringleaders, with a combined 194 offences. By then eight people had been charged and $38 million in assets had been seized. The Sydney Morning Herald later named the alleged head of the syndicate as Bing “Michael” Li. It reported that he was arrested at an apartment in Crown’s residential tower, where he and his partner rented the penthouse.
Financial Crimes Squad Commander Gordon Arbinja said at the time that the alleged syndicate had been operating for more than seven years.
December 2025: Andrew Hu charged
On 17 December 2025, police arrested a 34-year-old man in Dundas Valley. They described him as a third alleged ringleader, “a licensed mortgage broker formerly employed by two major banks”. Police said he was charged with 89 offences relating to alleged fraud worth $105 million against three major banks, along with offences of recklessly dealing with the proceeds of crime and knowingly directing the activities of a criminal group. He was refused bail.
The Sydney Morning Herald named him as Andrew W Hu, a former Commonwealth Bank and NAB employee. It reported that police allege he used what he knew about bank systems and checks to help the alleged syndicate. ASIC records show he was a credit representative (CRN 000554974) under Finsure’s credit licence from January to December 2024, and then under EZFUNDS Holding Pty Ltd, Hai Money’s licensee, from December 2024 until December 2025. Hai Money has not been found to have engaged in any wrongdoing.
Mr Hu has been charged and is presumed innocent. The allegations against him have not been tested in court.
2026: the investigation widens
Through 2026, reporting followed the investigation as it moved further into the professional services around lending:
- April 2026: The Adviser reported that the wider alleged mortgage fraud had led to charges against a solicitor and an accountant.
- 2 and 9 September 2026: In a joint release with the NSW Crime Commission, ASIC, the Tax Practitioners Board and the ATO, police said two alleged “money mules” had been arrested. They also said the director of a Bankstown accounting firm and two of its accountants had been charged over alleged false documents linked to more than $46 million in loans. That took the total charged under Strike Force Myddleton to 33 people, and the NSW Crime Commission has restrained $95 million in assets.
Police have said their focus is now moving to real estate agents and property developers. They expect to make more arrests.
Lender exposure
The alleged scale has grown as the investigation has gone on. In January 2026, the Sydney Morning Herald reported that police believed the alleged syndicate had defrauded major banks and other financiers of more than $250 million.
In September 2026, Detective Superintendent Arbinja told the ABC that an estimated $500 million in alleged fraudulent loans had been issued by the big four banks, with about another $100 million from smaller institutions. He described it as “the largest financial crime that I have ever seen”.
Police allege that one method involved buying properties at inflated prices under “deeds of rebate”. Under these deeds, vendors allegedly paid part of the price back to the buyer, and the lender never saw the arrangement. Arbinja said some properties sold for 40 to 50 per cent more than similar homes in the same street. He also said a softer property market was likely to make lenders’ recovery harder.
What it means for brokers
We want to be clear: the allegations concern a small number of individuals. They are not about the broking channel as a whole. Still, the fallout reaches every broker.
More scrutiny of every file. AUSTRAC told The Adviser it is working with the big lenders through the Fintel Alliance to understand the risks of falsified income documents, synthetic identities and “professional facilitators”. Brokers should expect more questions on income evidence, company financials and valuations.
Higher entry standards. The Adviser reported that Finsure has raised its entry requirements for new members and is using an AI monitoring tool. We expect others to follow.
Guilt by association. In our own experience, it can be hard for honest brokers to move or grow their businesses when their past affiliations are linked to the reporting. A charge is not a finding, and an affiliation is not an allegation.
Practical habits that protect you:
- Verify income documents at the source wherever you can, and keep a record of how you did it.
- Be cautious about referrer-driven deals where the referrer wants to control the documents or the contact with the client.
- Look carefully at valuations and contract terms that don’t match the comparable sales.
- Never let anyone else use your broker credentials.
- If something feels wrong, escalate it to your licensee and record what you did.
Where things stand
As at 31 October 2026, the matters are still before the courts and police say the investigation is continuing. We will update this post as verified information becomes available.
Sources
- ABC News, “Alleged ringleaders behind defrauding banks for luxury cars, homes and business loans face almost 200 charges” (31 July 2025): https://www.abc.net.au/news/2025-07-31/alleged-ringleaders-behind-fraud-scheme-ghost-cars-charged/105594298
- NSW Police Force media release (republished by The National Tribune), “Financial Crimes Squad charge third fraud syndicate ringleader…” (18 December 2025): https://www.nationaltribune.com.au/financial-crimes-squad-charge-third-fraud-syndicate-ringleader-a-former-banker-who-allegedly-orchestrated-more-than-105-million-in-fake-loans/
- Sydney Morning Herald, “Banker, broker, nightclub owner: The alleged fraudster who outsmarted two of Australia’s biggest banks” (19 January 2026): https://www.smh.com.au/national/nsw/banker-broker-nightclub-owner-the-alleged-fraudster-who-outsmarted-two-of-australia-s-biggest-banks-20260113-p5ntlw.html
- The Adviser, “Finsure terminates sub-aggregation agreement with Hai Money” (30 April 2026): https://www.theadviser.com.au/aggregator/48370-finsure-terminates-sub-aggregation-agreement-with-hai-money
- Joint media release (NSW Police, NSW Crime Commission, ASIC, TPB, ATO), “Financial Crimes Squad charge accountants and money mules…” (10 September 2026): https://www.tpb.gov.au/financial-crimes-squad-charge-accountants-and-money-mules-alleged-involvement-multi-million-dollar-fraud-scheme (also at https://www.ato.gov.au/media-centre/accountants-and-money-mules-charged-for-alleged-involvement-in-multi-million-dollar-fraud-scheme)
- ABC News, “Sydney crime syndicate allegedly defrauded banks of up to $600 million, police say” (10 September 2026): https://www.abc.net.au/news/2026-09-10/nsw-alleged-crime-syndicate-600-million-financial-fraud/107137362
- Sydney Morning Herald, “Big banks allegedly defrauded of $500m by Penthouse Syndicate” (September 2026): https://www.smh.com.au/national/nsw/big-banks-allegedly-defrauded-of-500m-by-penthouse-syndicate-20260909-p60vuj.html
- The Adviser, “Accountants arrested and charged as alleged loan fraud probe widens” (September 2026): https://www.theadviser.com.au/broker/48926-accountants-arrested-and-charged-as-alleged-loan-fraud-probe-widens
- Mortgage Professional Australia, “Accountants charged as mortgage fraud arrests hit 33”: https://www.mpamag.com/au/news/general/accountants-charged-as-mortgage-fraud-arrests-hit-33/589290
Disclaimer: This article reflects public reporting as at 31 October 2026. It is general information only and is not legal advice. All people referred to who have been charged are presumed innocent, and the allegations have not been proven in court. NBS Home Loans Pty Ltd, Australian Credit Licence 580020.