Murdered businessman link to $187m mortgage scam

SYDNEY - Murdered businessman Michael McGurk has been linked to an alleged A$150 million ($187 million) mortgage fraud racket involving hundreds of Sydney homes, police say.

About 260 people are suspected to be involved in the alleged scam, in which false documents were used to raise mortgages on residential and commercial properties.

Fraud Squad Commander Detective Superintendent Col Dyson said the strike force set up to investigate the scam was working with homicide squad detectives on several murders, including McGurk's.

McGurk was gunned down outside his Cremorne home on September 3, and Strike Force Narrunga was set up to investigate the killing.

Dyson would not say whether McGurk, 45, was a suspect, or whether his properties were involved.

Asked whether the investigation might uncover a motive for the murder, he said: "I can't talk about the homicide investigation but I can say that there are direct links between Strike Force Narrunga and Strike Force Apia," which was set up in 2007 to examine the large-scale fraud. So far 11 arrests have been made.

- AAP