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Operation Elbrus

Learn court outcomes of Operation Elbrus, a joint ATO-led Serious Financial Crime Taskforce investigation.

Last updated 27 March 2024

About Operation Elbrus

Operation Elbrus is an investigation into large-scale tax fraud and money laundering conspiracies. The investigation was conducted by the ATO-led Serious Financial Crime Taskforce (SFCT). It has resulted in a number of individuals being charged with a range of tax-crime offences.

The investigation allegedly involved a syndicate using Plutus Payroll and other payroll services companies to divert pay as you go (PAYG) withholding tax and goods and services tax (GST) owed to the ATO. This involved a network of second-tier companies headed by straw directors.

Operation Elbrus, also known as the Plutus Payroll fraud, was a joint ATO and Australian Federal Police (AFP) investigation that became a key focus for the Taskforce in 2017.

Tax crime affects everyone. This particular fraud ripped off innocent creditors and deprived the public of valuable funds for essential services.

Those involved thought they would never be caught. However, they overlooked the investigative powers of the SFCT. The Taskforce is committed to bringing the most serious offenders of financial crime to account.

You can download our infographics and learn more about how the Plutus Payroll scheme worked (PDF, 147KB)This link will download a file and how Operation Elbrus unfolded (PDF, 392KB)This link will download a file.

Latest news – 2023 and 2024

Read the latest news and sentencing details:

1 February 2024 – 4.5 years jail for offender

Christopher Guillan, a former Finance Manager, was charged with negligently dealing with proceeds of crime. Mr Guillan was the last offender as part of Operation Elbrus to appear before the courts for sentencing.

For his role in the syndicate, Mr Guillan received a sentence at the Supreme Court of NSW of 4 years 6 months jail, with a non-parole period of 2 years 3 months.

Read more at Final person sentenced over Operation Elbrus tax fraud.

22 August 2023 – Ex-pro snowboarder sentenced to 15 years jail

Jason Onley was sentenced to jail for 15 years with a 10-year non-parole period. He was charged with conspiring to cause a loss to the Commonwealth, and conspiracy to deal with proceeds of crime $1 million or more.

Mr Onley was also a key facilitator in the creation and operation of the scheme. He helped manage the second tier companies and also helped to conceal the scheme from authorities.

Read more at Operation Elbrus: Trio jailed over tax fraud.

22 August 2023 – 15 years jail for key facilitator

Adam Cranston was sentenced to jail for 15 years with a 10-year non-parole period. He was charged with conspiring to cause a loss to the Commonwealth, and conspiracy to deal with proceeds of crime $1 million or more.

Mr Cranston was responsible for the management of second tier companies and was considered one of the architects of the tax fraud. He was involved in the planning of the scheme and its concealment from authorities.

Read more at Operation Elbrus: Trio jailed over tax fraud.

4 July 2023 – Former solicitor jailed for 14 years

Dev Menon was sentenced to jail for 14 years with a 9-year non-parole period. He was charged with conspiring to cause a loss to the Commonwealth, and conspiracy to deal with proceeds of crime $1 million or more.

Mr Menon played a key role in the tax fraud. Using his skills as a solicitor, he gave advice on how to avoid detection and mislead the ATO and covered up the conspiracy's crime.

5 May 2023 – Co-conspirator sentenced to 9 years jail

Patrick Wilmott was sentenced to 9 years jail with a 6-year non-parole period. He was charged with conspiring to cause a loss to the Commonwealth, and conspiracy to deal with proceeds of crime $1 million or more.

Mr Wilmott jointly exercised day-to-day control over second-tier companies and their bank accounts used by the syndicate to withhold money and underpay a portion of the PAYG withholding and GST owed to the ATO. His role included processing payments for the second-tier companies, at the direction of other conspirators.

Read more at Operation Elbrus: Sydney man jailed for tax fraud.

1 May 2023 – Co-conspirator sentenced to 8 years jail

Lauren Cranston was sentenced to 8 years jail with a non-parole period of 5 years’ imprisonment. She was charged with conspiring to cause a loss to the Commonwealth, and conspiracy to deal with proceeds of crime $1 million or more.

It was found that Ms Cranston jointly exercised day-to-day control over the second-tier companies and their bank accounts. These were used by the syndicate to withhold money and underpay a portion of the PAYG withholding and GST to the ATO. Her role included using various bank accounts to launder the funds for the financial benefit of the co-conspirators.

Read more at Operation Elbrus court outcome: Woman jailed for tax fraud offencesExternal Link.

News from 2021 and 2022

Read the latest news and sentencing details:

23 June 2022 – Former solicitor sentenced to 12 years jail

Former solicitor, Sevag Chalabian, provided the mechanism for disguising more than $24 million that was received into and then transferred out of his legal practice’s trust account.

These funds were considered the proceeds of crime derived from other persons blackmailing the Plutus tax fraud conspirators of some of the proceeds of their fraud.

Mr Chalabian was convicted and sentenced to 12 years in jail with a non-parole period of 7 years and 6 months. He also had his solicitor's practicing certificate cancelled in 2020.

Read more at Operation Elbrus court outcome revealed: lawyer jailed for 12 years.

1 April 2021 – Blackmailer pled guilty

Mr Daniel Hausman looked for property development opportunities to launder some of the proceeds of the fraud. He also took part in blackmailing those who were involved in the fraud. Mr Hausman pled guilty to the following 2 charges for his role in the scheme:

  • unwarranted demand with menaces
  • dealing in the proceeds of crime.

For his crimes Mr Hausman was sentenced to 8 years imprisonment ending on 29 March 2029 with a non-parole period of 6 years. Mr Hausman also appealed his sentence, which was dismissed on 14 February 2022.

1 April 2021 – Man pled guilty to blackmail

Mr Daniel Rostankovski pled guilty to the following 3 charges for his role in the scheme:

  • aid, abet, counsel or procure the commission of an offence
  • unwarranted demand with menaces
  • dealing in the proceeds of crime.

For his crimes Mr Rostankovski was sentenced 10 years and 5 months jail with a non-parole period of 7 years and 2 months. Mr Rostankovski appealed the decision, however his appeal was denied by the court.

News from 2019 and 2020

Read the latest news and sentencing details:

31 July 2020 – Plutus payroll architect jailed for 7.5 years

Simon Anquetil, one of the founders of the payroll services company, Plutus Payroll, and one of the architects of the fraudulent scheme, pled guilty in November 2019 to conspiring to defraud the Commonwealth and knowingly dealing with the proceeds of crime with a value of $1 million or more.

Mr Anquetil was sentenced to 7 years and 6 months jail on 31 July 2020 with a non-parole period of 5 years.

Read more at Plutus Payroll founder jailed in Operation Elbrus.

10 July 2020 – Fourth Plutus Payroll offender sentenced

From 2014 to 2017, Devyn Hammond jointly exercised control over the second-tier companies associated with Plutus Payroll and their bank accounts.

Ms Hammond's role in the crime syndicate included operating the accounts of Plutus's second-tier companies and falsely signing off as the dummy directors on records or impersonating them in emails.

The 27-year-old pled guilty to conspiring to defraud the Commonwealth and conspiring to deal with the proceeds of crime worth more than $1 million.

She was sentenced in the Supreme Court of NSW on 10 July 2020 to 4 years jail with a non-parole period of 2 years and 6 months.

Read more at Fourth person jailed for Operation Elbrus.

4 June 2020 – Former accountant becomes third Operation Elbrus offender sentenced

Paul O'Leary, a former accountant, was charged with negligently dealing with proceeds of crime.

Mr O'Leary was the third Operation Elbrus offender to appear before the courts. He pled guilty to negligently dealing with proceeds of crime in excess of $1 million.

For his role in the syndicate, he received a sentence of 3 years and 3 months jail in the District Court of New South Wales. This was later reduced on appeal to 2 years with a minimum period of one year and one month.

21 February 2020 – Dealing in proceeds of crime results in 3 years and 4 months' jail

Former bricklayer, Aaron Paul, was initially hired by the syndicate to run errands. He moved on to recruit straw directors and launder money for the syndicate.

Mr Paul pled guilty to his role in the crime syndicate and dealing with the proceeds of crime in excess of $100,000 between 2016 and 2017.

He was the second Plutus Payroll offender to be sentenced.

The sentencing on 21 February 2020 in the District Court of NSW was just months after Mr Paul's co-accused Mr Kitson was sent to jail. Mr Paul was sentenced to 3 years and 4 months jail for his role in the Plutus Payroll tax fraud.

Read more at Second successful prosecution under Operation Elbrus.

28 August 2019 – Former Plutus Payroll general manager sentenced

Joshua Kitson was the former general manager of Plutus Payroll. He was one of the key staff of Plutus Payroll who actively engaged in the fraud from an early stage. He performed a key role in concealing the conspiracy from legitimate clients and Plutus staff. He was involved in the payroll services company, siphoning off millions of dollars owed in PAYG withholding tax and GST through a complex network of companies. The money was laundered as loans, consulting fees and property investments.

Mr Kitson was responsible for recruiting, managing and maintaining Plutus's client base and its employment staff. The clients and employment staff were unaware of the fraud.

He played a key role in implementing the fraud, ensuring it succeeded and attempting to conceal and destroy incriminating material. For his role, he received approximately $1.3 million in illegitimate funds.

Mr Kitson was the first Operation Elbrus offender sentenced. On 28 August 2019, in the Supreme Court of NSW he was sentenced to 4 years and 6 months jail with a non-parole period of 3 years.

 

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