White-Collar Crime Charges: Fraud, False Accounting, Money Laundering and Directors' Duties

White-collar crime usually involves dishonesty in a business setting, such as obtaining property by deception, false accounting, money laundering, tax fraud or a director's breach of statutory duties. Matters may be investigated by Victoria Police, ASIC, the ATO or the AFP and prosecuted under Victorian or Commonwealth law. Investigations often begin with compulsory examinations or notices to produce documents, so getting legal advice before responding to any notice is essential to protecting your position.

Key points

• Under the Crimes Act 1958 (Vic), section 81 (obtaining property by deception) and section 82 (obtaining a financial advantage by deception) each carry a maximum of 10 years' imprisonment.
• Money laundering can be charged under section 194 of the Crimes Act 1958 (Vic) (dealing with proceeds of crime) or Division 400 of the Commonwealth Criminal Code, with penalties varying by amount and state of mind.
• ASIC can issue a notice under section 19 of the ASIC Act requiring you to attend an examination on oath; failing to comply or giving false answers are offences.
• In an ASIC examination the privilege against self-incrimination is largely removed, but if you claim it before answering, the answer generally cannot be used against you in criminal proceedings.
• A director who breaches their duties recklessly or dishonestly may face criminal liability under section 184 of the Corporations Act 2001.

Common white-collar charges

• Fraud and deception: obtaining payments, loans or investments through false representations, or issuing false invoices;
• False accounting: falsifying, destroying or concealing accounting records for gain or to cause loss;
• Money laundering: dealing with, moving or concealing proceeds of crime, including receiving and transferring funds for others or cross-border money arrangements;
• Tax fraud: false GST refund claims, concealing income or using shell companies to avoid tax;
• Director and corporate offences: dishonest use of position or information, or moving assets when the company is insolvent.

Who investigates: ASIC, ATO, AFP and Victoria Police

Corporate and financial services breaches are usually investigated by ASIC; tax issues are audited or investigated by the ATO; matters involving Commonwealth interests, cross-border funds or large-scale laundering may be investigated by the AFP; and fraud against individuals or businesses is often handled by Victoria Police. Commonwealth offences are generally prosecuted by the CDPP. Knowing which agency is involved and what powers it has is the starting point for deciding how to respond.

Compulsory examinations and notices to produce

Regulators such as ASIC and the ATO have statutory powers to require documents or answers on oath. Unlike a police interview, you usually cannot simply decline to answer in these compulsory processes. Key points:

• contact a lawyer as soon as you receive a notice, and check its scope and deadline;
• you can have your own lawyer present at an ASIC examination;
• claim privilege before answering questions that may incriminate you, to obtain the protection of use immunity;
• answer truthfully and accurately, do not guess, and say so if you do not know;
• identify documents that may be protected by legal professional privilege.

For example: the director of an import–export company receives an ASIC section 19 notice to be examined about money moved out of the company before it went into liquidation. With a lawyer's help, the director prepares the documents and properly claims privilege during the examination.

After charges: court process and asset risks

White-collar cases often involve large volumes of documents and electronic data and can take a long time. Beyond criminal penalties, prosecutors may apply to restrain or forfeit assets under the Confiscation Act 1997 (Vic) or the Proceeds of Crime Act 2002 (Cth), and a convicted director may be disqualified from managing corporations, automatically or by court order. Dealing early with restraint applications, preparing forensic accounting analysis and assessing plea or defence strategy all affect the outcome.

Visa holders and cross-border business owners

For business owners on temporary or business investment visas, a sentence of 12 months' imprisonment or more is a substantial criminal record under section 501 of the Migration Act, and dishonesty convictions usually carry weight in a character assessment. Cases involving offshore funds or foreign companies may also involve international assistance and overseas evidence.

How we can help

Drawing on our criminal, commercial and cross-border Chinese-community practice, Chua Tan Associates can help you respond to regulator notices, attend examinations, deal with searches and asset restraint, negotiate with the CDPP or Victorian prosecutors, and appear in court, in Mandarin, Cantonese or English.

Frequently asked questions

Can I refuse to answer questions in an ASIC section 19 examination?

Generally no. Failing to comply is an offence, but you can claim the privilege against self-incrimination before answering so the answer generally cannot be used against you in criminal proceedings. You can also have a lawyer present.

What is the maximum penalty for obtaining property by deception in Victoria?

Under section 81 of the Crimes Act 1958 (Vic) the maximum is 10 years' imprisonment. The actual sentence depends on the amount, planning, repayment and personal circumstances.

Can I be charged with money laundering for moving money for a friend?

Possibly. If the money is proceeds of crime and you knew, were reckless or negligent about its source, you may be charged under Victorian or Commonwealth law. Larger amounts carry heavier penalties.

Can a company director go to jail because the company lost money?

Ordinary business losses are not usually a crime. But a director who dishonestly or recklessly breaches their duties, such as misusing their position or moving assets, may face criminal liability.

Can my assets be frozen during an investigation?

Yes. Prosecutors can apply to restrain assets under confiscation or proceeds of crime laws. Early legal advice helps with issues such as living and legal expenses.

If you or your business has received a notice from ASIC, the ATO or police, or has been charged, call 03 9602 3988. Meet us at our Melbourne CBD office (Level 2, 262 Queen Street) or by video, in Mandarin, Cantonese or English.

This article is general information only and is not legal advice.

Reviewed by Justin Chua, Lawyer, Chua Tan Associates | Last updated: October 2026