NAB at Center of Alleged $150 Million Fraud Tied to Sydney Penthouse Syndicate

A National Australia Bank (NAB) employee-facilitated scheme is accused of helping a large money-laundering operation drain about $150 million from the lender, in what police describe as one of the nation’s biggest fraud cases. Investigators say the Penthouse Syndicate built a property empire in Sydney worth tens of millions of dollars by using corrupt solicitors, agents and mortgage brokers to secure loans that were then laundered through a web of companies and real estate purchases. The crackdown included a July raid on the Crown Towers Sydney complex in Barangaroo, where heavily armed officers seized luxury assets from a penthouse and took the operation’s alleged ringleader into custody.

The man authorities say directed the syndicate is Bing 'Michael' Li, a 38-year-old Shanghai-born resident who was arrested after officers searched the Crown Towers residential tower penthouse, where he had been living in a unit valued at about $37,000 a month. Li, who was wearing a Louis Vuitton bomber jacket at the time of his arrest, faces 87 charges, including knowingly directing the activities of a criminal group and dealing with the proceeds of crime. Police describe Li as the central figure behind the so-called Penthouse Syndicate, which investigators say managed a loans-and-property scheme that allegedly defrauded NAB of about $150 million.

Investigation records indicate NAB employees are suspected of accepting bribes from syndicate members to approve bogus loan applications. None of the NAB staff have been charged, but court documents reviewed by The Sydney Morning Herald show a NAB senior manager advised Li and other syndicate members on which documents to submit to secure loans. Prosecutors say the loans included a $2 million mortgage application and a nearly $500,000 business loan that were approved by the NAB manager, helping to move funds and real estate into the syndicate’s control. The case prompts scrutiny of bank compliance programs and the line between legitimate lending and criminal manipulation, with authorities stressing that the alleged wrongdoing involves a network spanning solicitors, mortgage brokers and other intermediaries, not NAB as a whole.

In total, police have charged 14 alleged syndicate members in connection with fraud totalling about $107 million, with roughly $15 million linked to NAB. The breadth of the scheme includes a November incident in which Hanna Karliana, an alleged syndicate member, supplied an electronic, selfie-style set of documents — including her Australian passport, phone number, email address and signature — to approve a $6 million home loan. An NAB employee approved the loan based on those documents, despite allegedly falsified financials provided by Karliana. The case highlights the scale at which the group allegedly operated and the risk of compromised identity verification in mortgage approvals.

Authorities say the network extended beyond Sydney, with additional suspects in August charged for acting as money-mules. Indra Hari Nurkianto, 60, and his 61-year-old partner are accused of using fraudulent documents to buy about $15 million worth of property on behalf of the syndicate, securing more than $12 million in mortgages and more than $2.3 million in business loans with the help of a corrupt NAB employee. Li’s wife, Zhouyao Chen, has also been charged, facing 11 counts of dishonestly obtaining financial advantage by deception, participating in a criminal group and contributing to criminal activity. The charges against Chen illustrate the family links that sometimes accompany cross-border criminal enterprises and the persistence of the syndicate under pressure from investigators.

The NSW Crime Commission has seized about $60 million worth of property, cars and other luxury goods as part of the July operation. Officers also recovered luxury watches, Chanel jewelry, designer handbags, drugs and cash in multiple currencies, with a combined haul reported at about $38 million. Authorities have not ruled out the possibility that more fraudulent loans connected to the syndicate could still be approved by NAB or other major banks, underscoring the ongoing risk of sophisticated schemes involving bank staff and external actors.

Despite the arrests, law enforcement officials say the Penthouse Syndicate is believed to still be operating in some form, with certain members yet to be charged. The investigation has drawn attention to the need for stronger verification processes and whistleblower protections within the banking sector, as prosecutors prepare to pursue additional charges in the coming months. In the meantime, NAB has said it will cooperate with authorities and review internal controls to determine the extent, if any, of its involvement and to strengthen safeguards against similar fraud schemes in the future.

The case marks a high-profile confrontation between criminal networks and Australia’s financial institutions, illustrating how money-laundering and fraud schemes manipulate legitimate lending channels. As investigators continue to unravel the full scope of the Penthouse Syndicate, authorities say more charges and potential bank-related actions may follow.*