A Sydney construction identity charged with leading a scheme that robbed $17 million from the taxpayer has been granted bail on strict conditions before what is expected to be a lengthy trial.
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George Alex, 49, denies running the syndicate police say used labour-hire and payroll companies to withhold and launder more than $17 million in owed taxes.
Involving financial industry experts and former bankers, the scam allegedly involved elaborate "phoenix" activity, where a new company is created to replace a deliberately liquidated debt-ridden business to avoid paying tax, creditors and employee entitlements.
Alex appeared via video link on Friday at Central Local Court, where magistrate Margaret Quinn granted bail with a $2 million surety.
The 49-year-old's bail conditions require him to present to police twice a day, use only one mobile phone - which police may check at any time - and not communicate with any of his co-accused.
Alex, whose assets have been seized and has already handed over his passport, must not apply for a new one and must stay more than one kilometre of any international points of departure.
"I cannot stress enough, sir, that if you make any difficulties in relation to this bail, you won't get bail again," Ms Quinn told him.
The 49-year-old was arrested on the Gold Coast during coordinated police raids across NSW, Queensland and ACT on July 21.
The "strong" circumstantial case - backed by bank records, intercepted phone calls and various surveillance devices planted over the 18-month investigation - and the possibility of jail created a significant motivation to run, the court was told.
Raelene Sharp, a barrister for the Commonwealth, also pointed to alleged threats made during secretly recorded calls and said Alex faced a "significant term of imprisonment" if convicted.
Ms Quinn did not accept Alex was a flight risk and said bail conditions would mitigate the Crown's concern that he would interfere with witnesses.
"He is not an unacceptable risk on these conditions and so bail may be granted," she said.
The court earlier this week heard Alex had difficulty accessing his medication in custody and had been on a waitlist for a psychiatrist for more than a week.
His 11 co-accused have already been released from custody on bail and he was willing to submit to "significant and onerous" bail conditions, his barrister Craig Smith SC said.
Alex is charged with conspiring to dishonestly cause the Commonwealth a loss and dealing in crime proceeds exceeding $1 million.
Contesting the strength of the case, Mr Smith said the recorded phone call summaries did not get close to proving the dishonesty element of the first offence.
Alex didn't have a long criminal record and "everyone agrees" he was completely compliant when granted bail and then sentenced to an intensive corrections order over an unrelated offence, the lawyer said.
The building industry figure was investigated by the trade unions royal commission in 2015 after a taped phone call emerged in which Alex threatened a member of the CFMEU.
Alex will next face court on September 15.
Australian Associated Press
