NSW: McGurk murder linked to $150m fraud racket: police

AAP General News (Australia)
12-17-2009
NSW: McGurk murder linked to $150m fraud racket: police

EDS: Adding names of charged pair



By Britt Smith

SYDNEY, Dec 17 AAP - Murdered businessman Michael McGurk has been linked to an alleged
$150 million mortgage fraud racket involving hundreds of Sydney homes, police say.

About 260 people are suspected to be involved in the alleged scam, in which false documents
were used to raise mortgages on residential and commercial properties.

Fraud Squad Commander Detective Superintendent Col Dyson told reporters on Thursday
the strike force set up to investigate the scam was working with homicide squad detectives
in relation to several alleged murders, including Mr McGurk's.

Mr McGurk was gunned down outside his Cremorne home on Sydney's lower north shore on
September 3, and Strike Force Narrunga was set up to investigate the execution.

Det Supt Dyson would not say whether Mr McGurk, 45, was a suspect, or whether his properties
were involved.

Asked whether the investigation may uncover a motive for the murder, he said: "I can't
talk about the homicide investigation but I can say that there are direct links between
Strike Force Narrunga and Strike Force Apia.

"I can't confirm we were investigating the gentleman prior to his death."

Strike Force Apia was set up in 2007 to examine the large-scale fraud and so far 11
arrests have been made.

On Thursday, a 43-year-old woman, Hiba Cornell, and 36-year-old Mohamed Diab were charged
with with a range of fraud-related offences, including conspiracy to cheat and defraud.

Cornell, allegedly a major player in the operation, is due to appear in Newtown Local
Court on January 12 after being granted police bail, while Diab was granted bail by the
same court.

It is alleged they defrauded the National Australia Bank of $3.9 million.

Det Supt Dyson said it was believed the scam began in 2002 with a bank employee identifying
properties that could be subject to fraudulent loans.

"It started as low level and mushroomed out over a number of years," he said.

"We are still gathering evidence in relation to the kingpin.

"Others are more runners, or mules, they involve themselves in low level activities,
some are employees of financial institutions."

Several bank employees had been stood down as a result of the fraud investigation, he said.

Individual offences involve millions of dollars and more than 200 properties in metropolitan
Sydney, ranging from units, apartments, and single dwellings to highrise and commercial
buildings.

Detectives were tipped off in 2007 when banks noticed abnormalities with the lending
in relation to some of the properties.

It's alleged the offenders used false documentation to obtain mortgages, or excessively
inflated the value of properties to obtain larger home loans.

Det Supt Dyson said identities of homeowners were also stolen by the thieves, who then
raised mortgages against the houses.

In some cases, home owners were recruited by the alleged racket, volunteering their
own properties for false loans, he said.

"We have never had an investigation involving what is really one group of this magnitude
in the past, either in terms of proceeds of the crime or the number of persons of interest,"

Det Supt Dyson said.

"We have a pool of persons of interest, we have identified those persons and we are
gathering evidence in relation to each and every one of them.

"It's only a matter of time before, we hope, if sufficient evidence exists, that all
260 will be charged."

AAP bzs/hn/srp/de

KEYWORD: FRAUD 2ND WRAP

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