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Australia's largest tax fraud case

Understand how Operation Beaufighter was set up and where the funds were moved to, also explained in an infographic.

Last updated 20 July 2023

The scam

How it was set up

  1. Four trusts were created to facilitate transactions between ANZ and large corporates under ‘sale and leaseback’ arrangements.
  2. Complex arrangements were set up via NeuMedix Health Group for the purpose of obtaining a tax benefit. They resulted in tax liabilities being distributed to NeuMedix from ANZ and other large companies in return for lesser cash payments.
  3. NeuMedix entered into agreements with Athena Health Patents Incorporated (Cayman Islands) to acquire medical patents/inventions relating to the treatment of cancer and a surgical clip.
  4. Athena Health provided inventors with a small amount of research funding and a promise of further payments if they were commercially successful in assigning intellectual property to Athena Patents.
  5. Karkalla Biotechnology Group overvalued the patents in valuations provided to NeuMedix to convince the ATO that the patents were real.
  6. Athena Health ‘sold’ intellectual property to NeuMedix at an inflated price.
  7. Dampier Finance purportedly provided funding to NeuMedix to buy patents but no actual funds were exchanged. Involving an international finance company also intended to convince the ATO that the transactions were legitimate.
  8. NeuMedix falsely claimed tax depreciation expenses on the acquisition of intellectual property, to ensure they had no actual tax liability from their involvement in the sale and leaseback arrangements.

NeuMedix Health Group's principal business activities included:

  • investing
  • developing
  • commercialisation of medical technologies patents and related intellectual property.


All companies were controlled by Anthony Dickson and Michael Issakidis:

  • NeuMedix Health Australasia Pty Ltd
  • Athena Health Patents Incorporated (Cayman Islands company)
  • Karkalla Biotechnology Group (fake Samoan company)
  • Dampier Finance (Samoan financier)
  • Athena Global (UAE)
  • Meed Inc (UAE).

Proceeds of crime

$63,715,000 which was received from 4 unit trusts, with $68 million actually received.

The loss

The loss or risk of loss that was intended to be caused to the Commonwealth was 30% of approximately $450 million which was approximately $135 million in the relevant years.

The balance of $300 million in understated income had no tax paid on it in later years, with another $100 million in tax also not paid.

Money laundering

Where the funds moved

  • Dampier Finance – money was laundered from Australia into bank accounts in the United Kingdom (via Dampier Finance).
  • Intrepid – money was transferred to Hong Kong (via Intrepid and Flying Dragon International).
  • Athena Global – money was transferred to the United Arab Emirates (via Athena Global and Meed Incorporated).
  • Athena Health Patents Incorporated – money was purportedly transferred to Athena Health (Cayman Islands) via Dampier Finance (Samoa).
  • NeuMedix Health Group – $63 million went back to Australia through loans paid to directors and associates.

NeuMedix made $63 million in cash (proceeds of crime) from their involvement in the structured finance arrangement.

Money was spent to fund lavish lifestyles, including:

  • cars – Rolls Royce, Lamborghini, Aston Martin, Mercedes and BMW
  • yachts
  • shopping
  • holidays
  • properties.


Find out more about how the scams was set up and where the funds were moved to (PDF, 338KB)This link will download a file.