Three Northern Territory residents have been arrested and charged with fraud, and one of them also with corruption over an alleged multi-million-dollar Defence contract scheme.

Australian Federal Police (AFP) investigators raided homes and businesses across Darwin on Friday after receiving a tip-off from the Department of Defence about the alleged crime.

The AFP alleges a 48-year-old Commonwealth Defence employee, his 40-year-old wife, and a 41-year-old male director of a local construction firm had conspired to c

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