In short
- The trio defrauded POPES Electrical and Data Supplies of hundreds of thousands of dollars between 2016 and 2019, forcing store closures and staff layoffs.
- They must pay a combined $250,000 in reparations and will serve their sentences in the community.
What happened
Three former employees of POPES Electrical and Data Supplies in Canberra were sentenced to intensive corrections orders after pleading guilty to money laundering, theft, and obtaining property by deception. Their scheme, which ran from 2016 to 2019, involved false invoices, refunds, and selling stolen stock, resulting in significant financial losses for the business.
The fraud was uncovered in 2019 when a client queried their account, leading to a police search in March 2025 that found stolen goods. The business suffered a loss of more than half a million dollars, closed two stores, and laid off 12 staff. The offenders must pay $250,000 in reparations and serve their sentences in the community.
The offending was entirely dishonest and involved a gross breach of employee trust.
In numbers
- $250,000 reparations to be paid by Byrne and Steven Quilter
- 12 staff laid off due to the fraud
What compliance teams should check
- Review employee access and controls for POPES Electrical and Data Supplies accounts and invoicing systems.
- Monitor for patterns of false invoicing, refunds, and unauthorized sales of stock similar to those used by Byrne and the Quilters.
- Update AML/CFT risk assessments to include typologies involving internal employee fraud and money laundering through business accounts.
Why it matters
This case highlights the significant AML/CFT risks posed by internal fraud and employee collusion, which can result in substantial financial losses and operational disruption for businesses. The use of false invoicing, refunds, and unauthorized sales demonstrates how trusted insiders can exploit weaknesses in internal controls to launder proceeds and deceive both employers and customers. Compliance officers must remain vigilant for such schemes, ensuring robust monitoring, regular audits, and effective segregation of duties to detect and prevent similar misconduct.
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