Four arrested after LHA investigation into alleged money laundering operation in Mildura

Four foreign nationals have been arrested and bank accounts worth over $3.3m seized by Victoria Police after an investigation and referral by the Labour Hire Authority (LHA).

The actions disrupted a significant alleged money laundering syndicate operating in Mildura.

LHA officers worked in partnership with Victoria Police, AUSTRAC and other agencies, as part of ongoing LHA operations targeting unlawful activity by labour hire businesses in Mildura.

This work helped to establish the extent of the activity, identify criminal behaviour patterns, and to understand the people and businesses involved.

LHA established an intelligence picture showing a sophisticated laundering methodology involving deposits and withdrawals in the Mildura CBD, and made a formal referral to Victoria Police.

The scheme also involved a form of labour hire licence fraud, where companies were registered with names closely resembling licensed businesses, to deceive hosts into believing they were licensed.

Labour Hire Licensing Commissioner, Steve Dargavel, said the action highlights the importance of horticulture businesses checking the company and people that provide their labour hire services.

“Unlicensed labour hire operators can be involved in crime across state and international borders, so they’re not people you want to do business with,” said Commissioner Dargavel.

“We’ve made it easy to avoid these dodgy operators – always check the labour hire licence on our register; don’t risk business disruption and significant fines.”

LHA has cancelled the licences of businesses suspected of being linked to the criminal syndicate.

Arrests and seizures

Following investigation by the Criminal Proceeds Squad, Victoria Police executed search warrants at five residential addresses and one restaurant in Mildura, and made four arrests.

In total, investigators seized:

• an ANZ bank account containing $2.5m
• A NAB bank account containing $895,000
• approximately $100,000 in cash
• two sim boxes
• over 50 mobile phones
• four luxury watches valued at over $150,000
• over 100 various bank cards
• various documents linking to accounts used to launder money
• Western Union transfer documentation
• over 155,800 illicit cigarettes
• multiple sim cards and electrical devices.

“Criminal syndicates use money laundering to legitimise their profits and exploit legitimate businesses, harming communities and economies,” said Detective Inspector Jennifer Locke, Criminal Proceeds Squad, Victoria Police.

“This criminal activity is not only bankrolling high-flying lifestyles, but it also funds serious and organised crime, enabling everything from drug trafficking and exploitation to fraud and high harm violence,” said Detective Inspector Locke.

“We will continue to work together with our partner agencies to hold to account those who launder dirty money through Australian financial systems to fund serious and organised crime,” she said.

The investigation remains ongoing.

LHA compliance and enforcement in Mildura

Horticulture operations and the Sunraysia region remain a focus for LHA compliance activities.

Unlawful labour hire companies continue to target growers, putting host businesses at risk of fines, disruption and involvement with criminal elements.

As well as the criminal syndicate uncovered in Mildura, and issues as serious as forced labour – a type of modern slavery – LHA has found other labour hire companies attempting to avoid scrutiny through licence fraud.

In July 2025 LHA undertook unannounced visits to farms in the region, interviewing workers and key staff from hosts and providers, and collecting financial documents to enable the investigation of potentially unlawful conduct.

Labour hire providers were found:

• producing fraudulent paper licences
• doctoring digital files relating to their licensing status
• claiming to be a specific licensed company without that provider's knowledge, then giving a host their own contact and bank details for payment.

LHA has taken significant compliance and enforcement action in Victoria’s horticulture industry to date, including prosecuting unlawful conduct.

In September 2024, a horticulture business and two directors were issued penalties totalling $263,889 for unlawful changes in directors.

In December 2024, a horticulture business and its director were issued penalties totalling $287,500 for failing to comply with licence obligations.

Actions for hosts – protect your business

Hosts can take two quick actions to protect their business and support LHA in working towards a fairer industry for businesses and workers:

• Check the provider's licence on the Labour Hire Licence Register.
• Subscribe to be notified of any changes to licence status using the Follow my Providers tool.

Hosts should be aware of unusual patterns of behaviour by providers, such as frequent changes in business name or bank account details, as this may indicate illegal phoenix activity.

Illegal phoenix activity occurs where a company is liquidated, wound up or abandoned in a deliberate attempt to avoid paying its debts. A new company is then started to continue the same business activities without the debts.

Hosts can take steps to protect their businesses from illegal phoenix activity by looking out for the following signs:

• quotes lower than market value
• company directors previously involved with liquidated entities
• requests for payments to a new company or bank account
• changes to a company's directors and name, while the manager and staff remain the same.

Find out more about illegal phoenix activity and licence fraud by downloading the horticulture host fact sheet.