A joint investigation between the Australian Taxation Office (ATO) and the Australian Federal Police has seen the organisers of three different illegal investment schemes sentenced to a total of more than 21 years in prison.
Stephen Cox was sentenced to nine years and 11 months jail with a non-parole period of three years and four months, Peter Morrison was sentenced to six years jail with a three year non-parole period, and John Cuffe received a jail term of six years with three years non-parole.
All three men promoted and operated illegal investment schemes offering investors associated tax deductions. One scheme involved retirement village joint ventures, another donations to a charity, and the third, employee welfare funds.
Approximately 300 investors allocated monies to these schemes.
"Over $46 million would have been fraudulently claimed through the scheme had the ATO not intervened and advised participants not to claim a deduction," ATO commissioner Michael D'Ascenzo said.
Under the scheme, individuals were provided with false documentation for investment loans they were told were tax deductible. In reality no loans or investments were actually made.
"These sentences serve as a stern reminder to promoters of fraudulent schemes. If you deliberately do the wrong thing, you will get caught and you will face the consequences," D'Ascenzo said.
"If you are unsure about your situation, or believe someone is doing the wrong thing, I encourage you to give us a call," he added.
