Million-dollar NSW fraud racket busted

An alleged million-dollar fraud racket has been brought down by NSW police, resulting in 11 people being charged in Sydney's west.

A 25-year-old man was arrested at a Merrylands home on Thursday and charged with knowingly directing the activities of a criminal group, money laundering and intention to defraud.

Ten others have previously been charged with participating in a criminal group and other similar charges.

Joint Counter-Terrorism detectives allegedly uncovered evidence of the syndicate, but it's believed there are no direct links to terrorism.

"Police allege those involved in the plot lodged fraudulent loan applications to purchase a number of vehicles in NSW," police said.

Once aware of the plot police were able to warn institutions, which then declined the loans.

The Merrylands man is expected to face Fairfield Local Court on Thursday.