Dambuster,
I think the correct name is 'securities lending arrangement'. I may be wrong though.
It was big business with JB some years ago in Melbourne, and Sentinel dabbled in it also.
There were quite a lot of pilots I knew who cleaned up, but their view may now change.
I remember being told by a solicitor a couple of years ago that the ATO had a test case up against a 'little old lady who would wither under the questioning of Mr. Jones QC (or whoever, QC) and thereby set a precedent for them to go after al who participated.'
If your report is factual, it looks as though the man cometh indeed!