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Investigation & Fraud News – Week ending 15 August 2025
ATMs linked to illicit tobacco trade and fraudster in Australia – 10 August 2025
NCR Atleos has placed Cashzone ATMs in stores linked to Australia’s illegal tobacco trade, despite the company’s claims of high ethical standards and compliance with laws. The ATMs are fueling the sale of contraband cigarettes, and the tie is the latest found in an ABC investigation examining how private ATM suppliers are supporting the illicit tobacco trade.
Quarter of poker machines in NSW clubs could be susceptible to money laundering, agency says – 11 August 2025
A quarter of poker machines in NSW clubs could be at risk of money laundering and terrorism financing, the nation’s financial crimes intelligence agency says.
The Australian Transaction Reports and Analysis Centre says a program monitoring the machines run by BetSafe “systemically failed” to meet its legal obligations.
It comes as the agency turns its attention to clubs after successfully prosecuting several casinos across the country.
Truck driver ordered to pay more than $80,000 after compensation fraud – 11 August 2025
A Melbourne truck driver, 41, must pay more than $80,000 after pleading guilty to a single charge of fraudulently obtaining payments from employers. The court heard he continued driving for multiple companies while receiving weekly compensation (for anxiety, depression etc) until May 2023, when surveillance determined he was self-employed and the payments were terminated on grounds of fraud.
AI chatbots accused of encouraging teen suicide as experts sound alarm – 12 August 2025
An investigation by triple j hack has uncovered allegations of young people in Australia being sexually harassed and even encouraged to take their own life by AI chatbots. AI experts are calling on the government to introduce legislation to better regulate AI chatbots to protect young and vulnerable people.
https://www.abc.net.au/news/2025-08-12/how-young-australians-being-impacted-by-ai/105630108
KPMG, Deloitte, PwC exit 35 professionals over misconduct – 12 August 2025
Three of the big four consulting firms – KPMG, Deloitte and PwC – have exited 35 staff for misconduct, including sexual harassment and data breaches. The firms began disclosing misconduct complaints, with different reporting methods and varied transparency, after a series of reports in The Australian Financial Review detailed how they handled sexual harassment and other issues.
Access to digital version of AFR required to read full article
NAB and AFSH penalised $15.5 million for failing customers facing financial hardship – 13 August 2025
The Federal Court has ordered National Australia Bank (NAB) and its subsidiary, AFSH Nominees Pty Ltd (AFSH), to pay a pecuniary penalty of $15.5 million for failing to respond to customers facing hardship. The Court found that between 2018 and 2023, NAB and AFSH failed to respond to 345 hardship applications within the 21-day timeframe required by law. As a result, those consumers remained unaware of the outcome of their hardship applications.
Another PwC former partner deregistered for integrity breaches – 13 August 2025
A former PricewaterhouseCoopers partner has been deregistered as a tax agent for dodgy practices and false declarations while he was with the firm. The Tax Practitioners Board has terminated the registration of Richard Gregg and imposed a four-year ban prohibiting him from re-applying for a tax agent licence due to having breached multiple obligations under the Tax Agent Services Act 2009 and the Code of Professional Conduct. The ATO determined the clients affected by Mr Gregg’s conduct had a cumulative tax shortfall of more than $11 million.
https://region.com.au/another-pwc-former-partner-deregistered-for-integrity-breaches/894156/
Victorian childcare worker retained Working with Children Check despite being blacklisted – 13 August 2025
A string of regulatory failings saw a Victorian childcare worker retain his Working with Children Check — despite being blacklisted from the industry after an investigation found he was grooming toddlers. The saga raises questions about whether the bodies that oversee the troubled sector missed opportunities to intervene earlier. Hours after the ABC published its investigation into the case on Wednesday, the state government said it was moving to cancel the man’s Working with Children Check.
Superfund charged dead members: ASIC – 14 August 2025
Mercer Super is being sued for “serious member service issues”, including failing to refund dead people’s insurance premiums, the consumer watchdog alleges. The reviews investigated how funds had not being refunded correctly after a member had died, how members’ accounts were not being created with default insurance and how updates to members’ information were not being processed by the trustee.
https://au.finance.yahoo.com/news/super-fund-charged-dead-members-014638452.html
Increased harm: The crimes nearly half of Australians have fallen victim to – 14 August 2025
A report from the Australian Institute of Criminology found identity theft accounted for more than one in five victims (22 per cent), while fraudsters and scammers duped almost one in 10 (9.5 per cent). Some of the respondents either paid money or provided sensitive information to a scammer offering them either the false promise of an inheritance, share in a large sum of money or a holiday package in exchange for their help. The Cybercrime in Australia 2024 report also showed 27 per cent were targeted with online abuse or harassment, which is classified as a cybercrime.
Former Genius Childcare boss Darren Misquitta pleads guilty to dealing with suspected proceeds of crime – 14 August 2025
Darren Misquitta, former boss of Genius Childcare, has pleaded guilty to dealing with property reasonably suspected of being the proceeds of crime. A court heard he received $120,000 in suspected proceeds of crime from a business associate. It comes amid investigations into the childcare centre, which owes creditors more than $80 million.
https://www.abc.net.au/news/2025-08-14/genius-childcare-darren-misquitta-guilty-plea/105653390
UK police say 146 victims have come forward during Mohamed Al Fayed sexual offences probe – 14 August 2025
British police say 146 people are now being treated as victims of late Harrods boss and Egyptian billionaire Mohamed Al Fayed. That is a substantial increase on figures provided in previous updates by the Metropolitan Police. Authorities say they are investigating whether any misconduct or corruption was involved in facilitating or enabling Al Fayed’s abuse.
19 arrested for allegedly stealing $10 million worth of baby formula and other items – 15 August 2025
Police say they’ve dismantled an alleged major retail theft syndicate that allegedly stole more than $10 million worth of products from Melbourne supermarkets in a five-month period. The items stolen include baby formula, medicine, vitamins and electric toothbrushes. The investigation is ongoing and further arrests are anticipated.
Investigation & Fraud News – Week ending 1 August 2025
Why Australia’s fraud detection needs a fresh approach – 1 August 2025
As fraud becomes smarter, detection requires more than just tech. Boards, staff and auditors must work together to fight cyber and internal fraud risks. Emerging fraud types such as cyber-enabled scams and synthetic identities demand both advanced technology and a strong internal culture to detect. Experts warn that ethical leadership, proactive education and a questioning culture are the most effective — and affordable — tools against fraud.
Lawyer for ATO whistleblower Richard Boyle urges court not to impose convictions – 1 August 2025
ATO whistleblower Richard Boyle says he should not have any convictions recorded against him because he was acting in the public interest when he raised concerns about the agency.
The prosecutor told the court, Boyle’s motivations did not change the fact he acted unlawfully. Boyle will be sentenced later this month.
No respite for Brindabella directors as liquidators to press investigations – 1 August 2025
Liquidators of the company that ran Brindabella Christian College will continue to investigate its affairs and lodge a report with the corporate regulator. The Second Creditors Meeting held on Thursday (31 July) voted to wind up Brindabella Christian Education Ltd in the wake of a damning report from Deloitte administrators, which alleged multiple breaches of the Corporations ACT, including some that could bring criminal charges. The school reform group welcomed the decision to appoint liquidators and called for greater scrutiny from regulators of charities and private schools.
Telco uses AI chatbots to keep scammers hanging on the line – 3 August 2025
AI chatbots are being used by telco firm TPG to scam the scammers, engaging them in fake conversations to reveal their schemes and the types of organisations they are impersonating. TPG’s trial with Apate.ai, which started in April and runs to the end of August, has diverted around 280,000 scam calls to the chatbots so far.
Action at Last from Regulators on $1 Billion Superannuation Scams – 4 August 2025
Regulators have decided to come down hard on superannuation scams. Australian Securities and Investments Commission (ASIC) chair Joe Longo said the regulator had doubled the number of investigations into misconduct by financial advisors to send a strong signal that it would not tolerate any actions that reduced confidence in the $4.2b superannuation system. That confidence has taken a significant hit this year with the failure of the managed investment schemes Shield Master Fund and First Guardian, threatening around $1b of superannuation savings belonging to around 11,000 people.
https://smallcaps.com.au/action-at-last-on-dollar-billion-super-scams/
Australia: an increasingly global approach to criminal investigations – 4 August 2025
This article considers the major Australian government investigative, law enforcement and regulatory agencies involved in domestic and transnational investigations, with a particular focus on their global approach to adequately protect Australians from criminal threats, both local and international. The article examines the new internationalised mindset of Australian law enforcement, the effects of globalisation and the increased level of international collaboration between government agencies, as well as the tools and techniques utilised by these agencies to address the increasingly complex and ‘borderless’ nature of investigations.
Bizarre Albanese deepfake scam ads on YouTube promise tax ‘dividends’ – 4 August 2025
A deepfake clone of Anthony Albanese has appeared on a new wave of AI-generated scam ads targeting Australians on YouTube, prompting demands for the tech giant and the government to do more to prevent them. The bizarre scam sends users to a website purporting to be for Canadian broadcaster CTV, spruiking how “citizens can officially receive up to $3000 per month”.
Michael Grochowski’s Deceptive Empire: A $24 Million Landbanking Fraud – 5 August 2025
In the annals of Australian financial misconduct, few cases are as egregious as the landbanking schemes orchestrated by Michael Grochowski and Ian Edward Stephens. These two individuals, operating under the guise of legitimate property developers, preyed on the trust of unsophisticated investors, luring them into schemes that promised lucrative returns but delivered only financial devastation. The Australian Securities and Investments Commission (ASIC) exposed their operations, revealing a web of deceit that raised over $24 million through fraudulent landbanking ventures in Victoria. This article delves into the sordid details of their schemes, the devastating impact on victims, and the systemic failures that allowed such misconduct to flourish, painting a damning portrait of Grochowski and Stephens’ legacy of greed and betrayal.
Financial Crime Squad charge additional two allegedly involved in fraud syndicate; $53 million now restrained by NSWC – 5 August 2025
Detectives from State Crime Command’s Financial Crimes Squad have charged an additional two people allegedly involved in a highly sophisticated fraud and money laundering syndicate operating across Sydney. In January 2024, detectives attached to State Crime Command’s Financial Crimes Squad and the NSW Crime Commission launched an investigation into a criminal syndicate targeting Sydney automotive financing companies under Strike Force Myddleton.
Australian police accuse ex-cop of leading $190M money laundering scheme – report – 5 August 2025
AUSTRALIAN police have accused Michael Featherstone, a former Queensland detective, of running a $190 million (US$ 123 million) money-laundering network, according to reports. Mr Featherstone, once a fraud squad officer and later a private investigator, allegedly coordinated the operation, according to court filings by the Australian Federal Police (AFP).
Man accused of defrauding 98-year-old victim learns fate in freedom bid – 6 August 2025
An Indian national accused of swindling thousands of dollars from a vulnerable elderly woman in Portland has failed in his second bid at bail despite offering a $5000 surety.
https://www.standard.net.au/story/9029874/court-to-decide-on-bail-in-portland-elder-bank-scam-case/
Digital version of standard required to read article
Four people charged with money laundering in fake investment scam – 7 August 2025
Dimitrios (James) Podaridis, Peter Delis, Bassilios (Bill) Floropoulos, and Harry Tsalikidis, all from Victoria, have been charged with money laundering offences for their involvement in investment scams targeting individual investors. ASIC alleges that between January and July 2021, the four were involved in facilitating a sophisticated financial investment scam targeting Australian investors offering fraudulent bonds and other financial products (bonds scam). ASIC alleges that the four dealt with victim funds which were the proceeds of crime and were reckless as to whether those funds were proceeds of crime.
Man arrested in alleged $38m fraud scheme to remain in custody – 8 August 2025
A man allegedly involved in a massive $38m fraud scheme will remain in custody on remand after his arrest at a $37,000-a-month Barangaroo penthouse rental. NSW Police began investigating a luxury “ghost car” loan fraud scheme in January 2024 but now say the alleged scam run wider into large-scale personal, business and home loan fraud.
SW attorney-general approves $2 million compensation payment to Kathleen Folbigg after release from prison – 8 August 2025
The NSW attorney-general has granted $2 million in compensation to Kathleen Folbigg, who was wrongly accused of murdering her four children between 1989 and 1999. The decision comes two years after she was released from prison after 20 years. Ms Folbigg’s solicitor says an inquiry needs to occur to understand how the government decided on the figure.
Investigation & Fraud News – Week ending 1 August 2025
Chalmers urged to pull the leash on ASIC – 28 July 2025
Former corporate cop James Shipton says Treasurer Jim Chalmers’ failure to issue a statement of expectations to the Australian Securities and Investments Commission and lack of oversight by parliamentary committees is allowing ASIC to avoid accountability for enforcement actions against business. Shipton backed remarks by former Treasury secretary Martin Parkinson, who said aggressive corporate regulators were hurting the economy with a “gotcha” approach, and that their administrative red tape was stifling investment.
https://www.afr.com/policy/economy/chalmers-urged-to-pull-in-the-leash-on-asic-20250728-p5mib5
Access to financial version of AFR required to read Full article
Scammers, fraudsters and the tax office’s missing $50 billion – 28 July 2025
The ATO is one of the most powerful and secretive institutions in the country, but for years, it’s operated without effective scrutiny. In this major Four Corners investigation, award-winning financial journalists reveal how inaction and flawed systems have allowed more than $50 billion in tax to go uncollected. They unpick how a simple scam, supercharged on social media, saw tens of thousands of Australians fraudulently claim at least $2 billion in GST refunds. They also show how corporate operators extracted millions more through fake invoices and phantom construction projects, often without triggering even basic checks. And they expose how deep cuts, digital automation and a lack of independent oversight has left one of Australia’s most powerful institutions wide open to exploitation.
https://www.youtube.com/watch?v=lCNsluZrbvU
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Banks to refund millions in fees to more than 700,000 customers – 29 July 2025
ASIC last year said Commonwealth Bank, ANZ Bank, Westpac and Bendigo and Adelaide Bank would provide to people on low incomes, particularly First Nations customers, after a review found the customers had been kept in high-cost products even though they were eligible for lower-cost accounts. Since that report, refunds went up to $33 million, and ASIC has widened its work with banks to look at the effect on all low-income customers from charges including dishonour, overdraw and account-keeping fees. It brings the total payout to customers receiving government concession payments, whom ASIC said were typically known as “low-income customers”, to $93 million.
Too good to be true: Sydney exec testifies in $253m Perth fraud trial – 29 July 2025
The investors who entrusted him with more than a quarter of a billion dollars say Chris Marco held himself out to be an experienced businessman – a leprechaun who could take them to the pot of gold at the end of the rainbow. Only there was no pot of gold, prosecutor Steven Whybrow, SC, told the Western Australian Supreme Court, just a flimsy scheme kept afloat by the flow of funds being used to pay off old investors that was taking on water fast.
Access to digital version of AFR required to read article
ASIC doubles investigations into advisers after $1b failures – 30 July 2025
The corporate regulator says the $4.2 trillion superannuation industry is a honeypot for bad actors hoping to scam unsuspecting consumers out of their life savings and has doubled the number of investigations into misconduct by financial advisers over the past year. Australian Securities and Investments Commission chairman Joe Longo said the sharp rise in misconduct risked “damaging trust in a system as a whole”, sparking further legislative and regulatory intervention.
Access to financial version of AFR required to read Full article
Australian gambling giant Mounties taken to court over alleged AML breaches – 30 July 2025
AUSTRAC has launched civil proceedings against Mount Pritchard & District Community Club, known as Mounties, accusing it of serious breaches of AML (anti-money laundering) laws. The regulator filed the case in the Federal Court, alleging that Mounties failed to manage the risk of criminals laundering money through its poker machines. Mounties operates 10 venues in New South Wales, eight of which run about 1,400 machines.
Forward together: Addressing misconduct in financial services – 30 July 2025
Article is the keynote address by ASIC Chair Joe Longo at the FSC Symposium ‘Shaping Advice in a Time of Change’ on 30 July 2025. Joe Longo explains how ASIC is working to make the Australia’s superannuation system safer for consumers and how consumers can their part.
Alleged ringleaders behind defrauding banks for luxury cars, homes and business loans face almost 200 charges – 31 July 2025
Two Sydney men — aged 34 and 38 — have been charged as the alleged ringleaders of a scam defrauding banks out of tens of millions of dollars. Police allege the two men, were at the head of a syndicate that began by using stolen identification to apply for loans to purchase luxury “ghost cars” that did not exist. Two Bentleys and a Ferrari were among the $38 million in assets seized by NSW Police. The pair have been denied bail and are due to appear in court.
Bank insiders involved in alleged $178m Ponzi scheme – 31 July 2025
The accused ringleaders of a large-scale fraud and money laundering scheme allegedly used stolen personal information to apply for home and business loans with the help of trusted industry insiders to defraud several major banks and financiers of $178 million over seven years. Police allege that 38-year-old Bing “Michael” Li and 34-year-old Yizhe “Tony” ran a major crime syndicate before they were arrested by Strike Force Myddleton detectives in sweeping raids across Sydney.
It’s time to talk about AI and national security – 31 July 2025
The federal government has recently introduced legislation to extend the looming sunset clause on compulsory questioning powers originally granted to the Australian Security Intelligence Organisation (ASIO) following the 9/11 terrorist attacks. The nature of the threat posed by terrorism is now seen more objectively with the benefit of hindsight, and the wide recognition that repressive counter-terrorism measures potentially pose a far greater threat to democracies and social cohesion than isolated terrorism incidents. The federal government’s action in seeking to extend ASIO’s executive powers, is discussed in this paper by Bill Calcutt.
https://johnmenadue.com/post/2025/07/its-time-to-talk-about-ai-and-national-security/
Corporate wrongdoing and what insurance can do about it – 31 July 2025
Across Australia’s business landscape, regulators are wielding their sword through an increasing number of investigations and penalties. From workplace safety issues to climate disclosure failures and misleading products, firms are being held to account, including individual directors. The penalties can run into millions of dollars and their insurability can be a major issue for firms and their insurers. According to global broker Marsh, whether insurance will cover these penalties “is frequently far from clear” and is discussed in this article.
Review of Australia’s whistleblower scheme clocks more public sector inquiries – 1 August 2025
A review of the Public Interest Disclosure Act 2013 (PID act) tabled in parliament this week reports recent reforms are working as planned. According to the Commonwealth ombud, whistleblower disclosures under the PID scheme are being made and, where appropriate, allocated and investigated. Overall, 355 disclosures were received by agencies, 100 of which were allocated for investigation. Many finalised within an acceptable period.
Investigation & Fraud News – Week ending 25 July 2025
Wapu Sonk stands down from PNG NRL franchise board amid corruption allegations – 18 July 2025
A director of PNG’s new NRL franchise has stood down after it was revealed he allegedly tried to influence a Chinese state-run corporation to give a contract to his company. Wapu Sonk has not publicly commented on the allegations. PNG Prime Minister James Marape said Mr Sonk was “entitled to due process and the opportunity to clear his name”.
https://www.abc.net.au/news/2025-07-18/wapu-sonk-stand-down-png-nrl-corruption-allegations/105547490
Cambodian elites complicit in cybercrime despite latest government crackdown, experts warn – 18 July 2025
Cambodian authorities have launched a crackdown on cybercrime making more than 1,000 arrests in the past week.
Police raided cybercrime compounds across at least five provinces and arrested people from across Asia. A transnational crime expert says the operation was a performative exercise and there is no evidence the government is serious about tackling the illicit industry.
Malaysian fugitive Jho Low allegedly using fake Australian passport while living in China – 20 July 2025
Investigative reporters responsible for exposing the 1Malaysia Development Berhad (1MDB) corruption scandal say they have located the alleged mastermind in China. Jho Low is reportedly using a forged Australian passport. The federal government says use of a false Australian passport can attract a maximum of 10 years’ imprisonment and/or a $330,000 fine.
Cyber security expert outlines the scams Qantas customers can expect after data breach – 21 July 2025
A cyber security expert has warned Qantas customers are still in danger of sophisticated financial scams even though no credit card or passport information was compromised in the recent data leak. Qantas admitted 5.7 million passenger details were stolen in a data breach on June 30 from a call centre in Manila. The airline has been open and transparent about the breach and detailed the broke down the information that was taken including names, addresses, phone numbers, dates of birth and Frequent Flyer numbers.
Dodgy operators put on notice as AUSTRAC targets new tranche of industries for financial crimes – 22 July 2025
The Australian Transaction Reports and Analysis Centre (AUSTRAC) has outlined new plans to reduce the harms from serious financial crime, and says it is turning its focus to a renewed push on enforcement. AUSTRAC has released its regulatory priorities for the 2025-26 financial year, showing it is preparing to regulate “tranche 2” industries and targeting gaps in high-risk sectors such as cash and digital currencies. Tranche 2 includes real estate agents, lawyers, conveyancers, accountants, trust and company service providers, dealers in precious metals and stones, and other designated service providers. It refers to a set of proposed reforms that will extend Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regulations.
Inside Employment podcast series – Investigations, Part 1 – What’s the fuss with whistleblowing investigations? – 22 July 2025
In part one of this podcast the technical and legal dimensions of workplace investigations are discussed, with a spotlight on whistleblowing. Together, Tony Wood and Lucy Boyd explore how clients can navigate the complexities of internal complaints, regulatory obligations and reputational risks. They spend time discussing the overall trend towards greater transparency, for example through positive duty obligations and shareholder activism, and how this is reshaping how organisations respond to complaints and how they conduct investigations.
Banks, mules and government fools let scammers run free in Australia – 22 July 2025
Dr Kim Sawyer explains in this article that behind every scam that robs Australians blind, is a system that protects the banks, ignores the victims and enables the crime. Australia has been a soft target due to retirees with superannuation. Australia has also been a soft target because regulators were too slow to act and banks were unwilling to share liability. All that the international crime syndicates needed were middlemen within Australia to set up companies to launder the money and mules with accounts to be used for money laundering, and a system that protected them.
Reform of Australia’s electronic surveillance framework – 22 July 2025
Australia’s laws governing electronic surveillance are undergoing major reform. The reform aims to establish clear laws to enable law enforcement and intelligence agencies to access information in response to serious crime and threats to national security. The laws will:
• protect privacy;
• promote transparency; and
• be explicit for agencies, oversight bodies, industry and the public.
Macquarie Group-backed ATM provider begins removing machines from suspected illegal tobacco stores – 24 July 2025
An ABC investigation found ATM companies were cutting deals with tobacco criminals and installing their machines in illegal cigarette shops. Now Macquarie Group-backed Next Payments is removing more than 40 of its machines from suspected illegal tobacco stores, after the company said it had not previously been aware of the extent of the issue. The company’s CEO said the ABC had highlighted the “size and rapid spread” of the issue.
Tearful ICAC witness recalls ‘very improper’ meeting with transport official – 24 July 2025
A traffic controller has told the corruption watchdog he would pass kickbacks “under the table” at a Western Sydney restaurant. The kickbacks would eventually see a government worker allegedly net more than $11 million over 15 years. Subject of the inquiry, Transport for NSW staffer Ibrahim Helmy, is missing and wanted on a warrant to appear before the commissioner.
FCA maintains its focus on non-financial misconduct – 25 July 2025
The FCA (Financial Conduct Authority) says that serious non-financial misconduct (NFM) such as bullying, harassment and violence is a matter of regulatory concern, not just for banks, but for all regulated financial services firms and their staff. With the long awaited release of a policy statement and a further consultation opens in a new tab on “tackling non-financial misconduct in financial services”, the FCA has re-emphasised its expectation of financial services firms to foster healthy and inclusive workplace cultures that empower staff to speak up and raise concerns.
