A man has been charged with fraud after police discovered he had allegedly obtained a stolen cheque and bought gold bullion.

On 30 April 2011, the man allegedly set up a bank account under a false name and deposited a stolen cheque of more than $125,000 and then withdrew the total amount.

It is further alleged that included in these withdrawals, the man obtained a bank cheque for $56,000 and purchased gold bullion from a jeweller on Castlereagh Street, Sydney.

Following extensive inquiries, Detectives from The Rocks Local Area Command executed a search warrant yesterday (1 July) at the man’s residence on the Pacific Highway, North Sydney, where they allegedly located and seized equipment used in the manufacture of fraudulent documentation and bank account documentation in false names.

Police later arrested the man at a take away store in Darling Harbour.

He was taken to City Central Police Station where he was subsequently charged with fraud, knowingly deal with the proceeds of crime intending to conceal, and open account with a case dealer in a false name.

The 26-year-old has been refused bail and is due to appear at Parramatta Local Court today (2 July).