A former contestant on reality singing show The X Factor has been caught up in a money-laundering scandal in which seven people have been charged over an alleged wage-skimming scam that stole $144 million from the Australian Tax Office.
Sophia Constantopedos, a member of 2011 X Factor semi-finalists Three Wishez, was named in court documents tendered for the case but has not been formally charged with an offence, as News Corp reports.
However, according to an affidavit from a federal agent, Contstantopedos is suspected of allowing her company, Mermade Holdings — of which she is sole director and shareholder — to be used as a vessel for $250,000 in stolen funds from the ATO.
The singer's then-boyfriend, Daniel Rostankovski, is one of seven people charged over the scam, along with former deputy tax commissioner Michael Cranston and his son, Adam.
The group are alleged to have used a company called Plutus Payroll to divert PAYG tax payments made by businesses and individuals away from the ATO through other companies to obscure their actions.
News Corp reports that the affidavit claims the $250,000 was siphoned to Mermade Holdings masquerading as a loan repayment, with another $35,000 funnelled to the business suspected of having been used to purchase a boat.
Constantopedos is said to have also been the recipient of an $80,000 Range Rover, allegedly purchased by Rostankovski using the ill-gotten funds.
The vehicles were seized as part of a federal operation in May as the AFP launched their proceeds-of-crime investigation. The case is ongoing.
