Dodgy mortgages and dirty cash: Sydney woman arrested over alleged $7m money laundering ring
A Sydney woman allegedly laundered millions of dollars of illegal tobacco funds through fraudulent mortgages linked to an international crime ring.
The arrest of 36-year-old Xiaoli Xue on Thursday led police to the alleged discovery of $2.5 million worth of cigarettes, $28,000 worth of loose-leaf tobacco, more than $100,000 in cash, a luxury Mercedes GLC300, an illegal gambling den and an unlicensed tattoo parlour.
Financial Crimes Squad detectives have charged 36-year-old Xiaoli Xue (left) over an alleged $7 million money laundering syndicate.Credit: NSW Police
In June 2024, financial crime detectives from NSW Police’s state crime command formed Strike Force Karawina to investigate the alleged laundering of illegal tobacco funds through property by an organised crime syndicate hailing from South-East Asia.
The investigation allegedly discovered Xue laundered nearly $7 million through seven fraudulent mortgages since 2020. She was allegedly granted 10 loans at various banks through fraudulent documents that inflated her income.
Xue is accused of laundering the funds, the majority of which stemmed from the illegal tobacco trade, on behalf of the wider crime network through mortgage repayments.
At about 12pm Thursday, strike force detectives arrested Xue in Berala and took her to Auburn Police Station, where she was charged with 20 offences including dishonestly obtaining a financial advantage by deception, knowingly dealing with the proceeds of crime and knowingly dealing with the proceeds of crime with intent to conceal and defraud.
She was refused bail to appear at Burwood Local Court on Friday.
Xue allegedly applied for and was granted 10 loans using fraudulent documentation since 2020.Credit: NSW Police
Following her arrest, police – with the help of the NSW Health Tobacco Control Unit and the Australian Border Force – raided three properties in Berala and Auburn.
