Sydney man's giant mail fraud

SYDNEY - The licensee of a post office in central Sydney has been charged over what police say is Australia's largest postal fraud of AUS$4.2 ($5.3) million.

NSW Police and Australian Federal Police yesterday afternoon raided the post office on Kent St at Millers Point, seizing documents and arresting the 43-year-old man.

"Police will allege the man was defrauding the post office in what is believed to be the biggest fraud in Australia Post history," police said in a statement.

"It will be alleged the man was defrauding Australia Post in regards to monies paid to him for the alleged sales of postage stamps and envelopes sold through the branch."

The Australia Post licensee has been charged with a range of offences, including defrauding the commonwealth or a public authority, and theft.

He has been refused bail to appear at Central Local Court on Wednesday.

- AAP