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Investigation & Fraud News – Week ending 29 November 2024
Corrupt Victoria Police officer jailed after falsifying evidence in drug squad investigation – 19 November 2024
A former police officer has been jailed after he was caught faking evidence in a drug trafficking case.
The sentencing judge said Jye Symes’s actions had undermined public confidence in the police force.
Symes will have to serve at least 18 months behind bars before being eligible for parole.
Bunnings releases brutal CCTV amid privacy debacle – 20 November 2024
The Office of the Australian Commissioner (OAIC) declared home improvement retailer Bunnings “breached Australians’ privacy” by collecting personal, sensitive information through a facial recognition technology system. The system – which was incorporated into CCTV – captured the faces of “likely hundreds of thousands of individuals” across 63 Bunnings store.
https://ia.acs.org.au/article/2024/bunnings-releases-brutal-cctv-amid-privacy-debacle.html
Financial adviser faces 26 dishonesty charges – 21 November 2024
ASIC has reported that Kristofer Ridgway faces 26 charges of dishonest conduct and allegations of misleading clients about commissions,. The charges stem from allegations that he failed to disclose substantial commission payments while facilitating investments for clients.
Filipino police raid romance scam centre – 26 November 2024
Police in the Philippines have arrested 250 romance scammers in a raid on a criminal call centre, after an investigation involving intelligence from the Australian Federal Police. It’s believed the dodgy centre has scammed thousands of Australians, alongside many more victims from other countries.
https://www.abc.net.au/news/2024-11-26/naus_manilascamspm_2611/104650392
Alleged exploitation of migrant workers investigated in Lockyer Valley – 28 November 2024
Farmers and labour hire providers in the Gatton region, west of Brisbane, are being investigated over worker exploitation allegations. Federal government officers visited seven locations, including farms that produce broccoli, onions, pumpkins and shallots, to check for compliance. Officials will review any evidence collected and decide if legal action or education is required.
For the sake of our democracy, Australia urgently needs a whistleblower protection authority – 28 November 2024
It’s become clearer that a dedicated agency to enforce the nation’s various whistleblower protection laws will be an important priority for the 48th parliament, after the next election. The body would support employees who speak up about wrongdoing. It would also help employers and regulators resolve claims of detrimental action and it would help make legal protections real, by shouldering the huge costs of securing compensation for impacts suffered by those doing the right thing.
Scam Risk Management – 29 November 2024
Scams are a persistent issue in Australia and globally, affecting individuals and businesses alike. Reports of scams have surged over the years, with Australians losing billions annually. This paper looks at the difference between fraud and scams, who is most vulnerable and the shift towards regulated scam risk management in Australia. It also explores how global banks are preventing and detecting scam payments, highlighting common gaps and a bank ‘wish list’ to improve scam management.
https://www.fticonsulting.com/insights/articles/scam-risk-management-strategies-protect-organisation
Shoppings sites pretending to be Australian businesses – 28 November 2024
An ABC NEWS investigation has identified 57 online shopping websites engaging in deceptive and misleading conduct – pretending to be Australian businesses when they are instead international import operations. The websites advertise heavily on Facebook and Instagram. Consumer group, Choice and the ACCC are calling on social media giants to do more to check the identities of their advertisers and crack down on dishonest behavior.
Former ATSIC head Geoff Clark jailed for defrauding Framlingham Indigenous community – 29 November 2024
Former ATSIC head Geoff Clark, has been found guilty on 25 charges, spanning roughly two decades of offending. Clark has been sentenced to six years and two months in jail. The 72-year-old will be eligible for parole in three years and nine months, with 78 days already served behind bars.
Chinese military official Miao Hua under investigation amid ongoing corruption crackdown in China’s army ranks – 29 November 2024
One of China’s top military officials, Miao Hua, has been suspended amid a probe into his conduct. He is more powerful than China’s defence minister and was hand-picked for the role by Chinese President Xi Jinping. Experts say it’s a sign of a growing corruption scandal at the top of China’s army.
NDIS property developer’s luxury car and property portfolio revealed amid ASIC probe – 29 November 2024
An ASIC investigation found Mr McWilliams spent close to $40 million of investors’ money at a Gold Coast casino. While no charges have been laid, he is being investigated for allegedly providing financial services without a licence, misleading or deceptive conduct, breaching a director’s duties, misappropriating funds and engaging in fraud.
Investigation & Fraud News – Week ending 8 November 2024
‘Devastating’: The scams to watch out for as Australians complain in record numbers – 31 October 2024
The number of scams in Australia has hit a record high, according to a new annual report from the (AFCA). The complaints rose by a whopping 81 per cent in 2023-24. That means almost 11,000 Australian have made complaints about being scammed. The report found phishing, spoofing and remote access scams were widespread, while there had also been a “significant” increase in bank impersonation scams.
Ex-bank worker avoids jail over FB Marketplace scams – 31 October 2024
A former bank worker who scammed Facebook Marketplace users out of thousands of dollars, has avoided jail, with a judge describing some of his offending as “hopeless”. Daniele Biglietto pleaded guilty to 37 counts of financial fraud, which he claimed resulted from addictions to cocaine and gambling.
https://www.northweststar.com.au/story/8807883/ex-bank-worker-avoids-jail-over-fb-marketplace-scams/
Victoria Police Seize $142,679 in Crypto Under New Legal Framework – 1 November 2024
Victoria Police have been hard at work over the past 12 months, raking in nearly $150k worth of crypto from the wallet of criminals. This is a new ability for the Australian law enforcement agency, with legislation now allowing VicPol to seize digital assets with a search warrant.
ASIC expands probe into ANZ’s alleged bond market manipulation – 1 November 2024
The chairman of the Australian Securities and Investments Commission, told a parliamentary joint committee in Sydney that the high-profile investigation into ANZ’s role in a $14 billion government bond sale had been expanded to include misreporting of data. He also stated that the potential for the alleged conduct to impact the interest payments of the Commonwealth on the bonds issue will effect Australian taxpayers.
Ex-CEO of cryptocurrency exchange platform charged with stealing over 2 million AUD from a customer – 4 November 2024
The former chief executive officer (CEO) of crypto exchange Mine Digital is facing a fraud charge for allegedly withholding 2.2 million AUD a customer paid for Bitcoin (BTC) in July 2022. The Australian Securities and Investments Commission (ASIC) has officially charged Grant Colthup, the chief of the now-defunct exchange platform.
AFP raids PwC offices as tax leaks investigation further unfolds – 4 November 2024
The Australian Federal Police raided PwC Sydney offices recently in the most recent development in the tax leaks scandal. The investigation was dubbed Operation Alesia and has been in action since May last year. The original tax scandal emerged from former PwC partner Peter Collins sharing confidential information about tax law changes with other partners. Those partners used that information to win new clients and develop new structures that sidestepped the laws the firm was helping to design.
https://www.accountingtimes.com.au/tax/pwc-scandal-persists-with-afp-office-raid
Construction insiders fear speaking out against CFMEU without whistleblower protections – 4 November 2024
Due to fear, coupled with the absence of whistleblower protections for contractors wanting to disclose their experiences with the CFMEU, insiders say the CFMEU administration process will only scratch the surface of what has been happening in the sector.
The law firms trawling through corporate scandals – 7 November 2024
Major firms have grown their teams and boutique competitors have emerged, as solicitors increasingly choose to steer investigations themselves – from the evidence-gathering all the way to the reporting stage – rather than engage outside counsel.
ATO whistleblower Richard Boyle to face trial after high court refuses attempt to appeal – 7 November 2024
A South Australian court’s decision that federal whistleblower protections do not grant immunity for criminal acts committed while gathering evidence will stand, after the high court refused Richard Boyle’s attempt to appeal it. He will soon face a criminal trial in Adelaide for 24 offences, including the alleged use of his mobile phone to take photographs of taxpayer information and to covertly record conversations with colleagues.
Albanese Government introduces landmark Scams Prevention Framework – 7 November 2024
Landmark legislation establishing the Scams Prevention Framework will be introduced into Parliament on 7 Nov. The Australian Competition and Consumer Commission (ACCC) will have new powers to direct businesses to take specific steps to keep their customers safe from scammers and the Australian Financial Complaints Authority (AFCA) will be empowered to resolve consumer claims over scams in these sectors. The Scam Prevention Framework will include fines of up to $50 million for non compliance.
Investigation & Fraud News – Week ending 1 November 2024
As corporate scandals unfold, are company boards doing enough to stamp out bad executive behaviour? – 27 October 2024
Australian billionaire Richard White and co-founder of logistics software company WiseTech Global this week announced he will step down from his role as chief executive following allegations of inappropriate behaviour. The allegations have reignited questions about the roles and responsibilities of company directors, and whether they provide enough scrutiny and scepticism of their CEOs.
MinRes expands probe into alleged tax dodge to address ‘inconsistencies’ – 29 October 2024
Mineral Resources says an independent investigation into an alleged tax dodge by its billionaire founder and managing director, has been broadened to examine new information against Chris Ellison that contradicts the company’s understanding of the facts. The board of the West Australian iron ore and lithium miner said it was working to resolve these “inconsistencies” via an external investigation.
Canberra unveils major $14.7m scam compensation pathway – 29 October 2024
The government will direct $14.7 million in funding to the Australian Financial Complaints Authority to establish a “single door” for scam victims to hold social media platforms, banks and telcos liable. The pathway would be available to all victims who have exhausted internal dispute resolution channels, even if the complaint was against multiple regulated industries. Assistant Treasurer Stephen Jones hailed the funding as “a major uplift in consumer protections for scam activity.
Does tracking employees make them more productive – 28 October 2024
Companies have powerful new tools to track employees and monitor their productivity in detail, raising obvious concerns. RMIT University senior lecturer Melissa Wheeler questions whether technologies used to track employees actually work.
Grubby Mildura granny unmasked in $200k taxpayer scam – 29 October 2024
A Mildura mother-of-two faces jail after admitting to defrauding taxpayers and attempting to obtain an additional $400,000, with the money funding luxury purchases and her gambling habit.
Access to digital version of Herald sun required to read article
Crown pays over $500,000 following regulator’s investigation into long service leave underpayment – 29 October 2024
Over $500,000 has been paid to Victorian workers, and Crown Melbourne and Crown Resorts (Crown) have received formal warnings, after a Wage Inspectorate Victoria investigation uncovered hundreds of staff were underpaid their long service leave entitlements.
Corruption chief ‘engaged in misconduct’ on stopping robo-debt probe – 30 October 2024
National Anti-Corruption Commissioner Justice Paul Brereton has been found to have engaged in misconduct, when he involved himself in proceedings that rejected further investigation into the senior public servant in the robo-debt scandal, who was an army reserve colleague. The embarrassing finding came after the NACC’s independent inspector Gail Furness found Mr Brereton should have excluded himself completely from the decision not to investigate referrals from the robo-debt royal commission.
Access to digital version of AFR required to read article
Massive data breach exposes 800,000 insurance customers’ personal information – 30 October 2024
The insurance administrative services company Landmark Admin, has warned that a data breach from a May cyberattack impacted over 800,000 individuals due to their partnership with some of the largest insurance carriers in the U.S. Through these partnerships, millions of policyholders and their sensitive information, such as names, Social Security numbers, driver’s license numbers and passport numbers, could be at risk of exposure, further amplifying the potential impact of this breach.
Three people sentenced over roles in $5.8m fraud against NDIS and ATO, ordered to pay back over $575k – 31 October 2024
Three people have been sentenced to multiple years imprisonment for their roles in a scheme that defrauded $5.8 million from the NDIS and ATO. The trio were among six people arrested in 2021 over a suspected syndicate making false claims to both the NDIS and ATO. The trio have been sentenced to multiple years imprisonment, and have been ordered to repay the Commonwealth more than $575,700.
https://www.abc.net.au/news/2024-10-31/three-people-sentence-fraud-ndis-ato/104546856
Investigation & Fraud News – Week ending 25 October 2024
Corporations and officers can now be held responsible for predatory business models – 22 October 2024
Australian courts have long faced difficulties due to an inability to successfully pinpoint which individuals within a corporation were to blame for the conduct. The High courts have now decided that if a corporation has adopted a predatory business model, which is only profitable by taking advantage of a certain class of vulnerable customers, then it is assumed that the corporation acted knowingly and with intent. As such, the corporation can be held directly responsible and penalised. Furthermore, if a corporation is found to have acted unconscionably, any of its executives who had knowledge of the corporation’s systems can be also found to have acted unconscionably.
https://www.lexology.com/library/detail.aspx?g=64b5fb7e-ef78-43c4-9399-85c77f642374
Scammers pose as fake loan schemes, charities to target vulnerable Australians – 22 October 2024
The National Anti-Scam Centre is warning that criminals are targeting people in financial hardship by impersonating trusted organizations and offering fake programs like no-interest loan schemes, rental assistance, and emergency relief services. These scams often mimic legitimate services provided by well-known charities, such as Good Shepherd and the Salvation Army, which are intended to support low-income earners and those facing unexpected financial difficulties.
Secrecy is not security – 23 October 2024
A discussion on whistleblower protections, improving the National Anti-Corruption Commission, and why Australia may be the world’s most secretive democracy.
https://australiainstitute.org.au/post/secrecy-is-not-security/
Does Australia need a surveillance tech regulator? – 23 October 2024
The Australian Council of Trade Unions is calling for an artificial intelligence regulator to protect employees from exploitation and privacy breaches due to virtual workplace monitoring.
Insurance giant QBE taken to court by ASIC over allegedly misleading customers with false discounts – 23 October 2024
QBE has been sued by the corporate regulator over claims it misled customers about discounts. ASIC will take the insurer to court and accuse it of promising discounts for home, contents and car insurance which weren’t delivered. The discounts were offered to customers for their loyalty over a five-year period between July 2017 and September 2022, according to ASIC.
Former Abercrombie CEO out on $10m bond amid sex-trafficking investigation – 23 October 2024
The former Abercrombie & Fitch CEO Mike Jeffries was arrested on Tuesday as part of a criminal sex trafficking investigation by federal prosecutors. Authorities allege that Jeffries, his British partner Matthew Smith and a third man, Jim Jacobson, ran an “international sex trafficking organisation” that coerced “dozens and dozens” of men into sexual acts, often for the promise of a modeling career with the clothing retailer.
https://www.theguardian.com/business/2024/oct/22/former-abercrombie-ceo-arrested-sex-trafficking
Aussie crypto CEO charged with fraud – 24 October 2024
The former CEO of collapsed Australian cryptocurrency exchange Mine Digital, Grant Colthup, has been charged with fraud after an investigation by the corporate regulator found a customer did not receive millions of dollars’ worth of Bitcoin they had paid for.
https://ia.acs.org.au/article/2024/aussie-crypto-ceo-charged-with-fraud.html
‘Posting and boasting’ about crimes on social media now an offence in the NT, following similar laws in QLD, NSW – 25 October 2024
The Northern Territory last week became the third Australian jurisdiction after Queensland and New South Wales to make posting about certain crimes on social media an offence. But experts are warning that the measures only target the “symptoms” of crime and won’t be effective. The federal parliament is considering a private members bill from Coalition MP David Coleman to introduce post and boast laws nationally.
‘Years of unblemished service’: Manager claims unfair dismissal, no proper investigation – 25 October 2024
The Fair Work Commission (FWC) recently dealt with an unfair dismissal claim where a manager argued she was terminated without proper investigation after four years of unblemished service. The manager maintained she had never received any prior complaints about her management style, and that her dismissal came suddenly during her personal leave. The case examined what constitutes reasonable grounds for summary dismissal under the Small Business Fair Dismissal Code, particularly when dealing with workplace conduct complaints.
Jailed Malaysian leader Najib Razak apologises for 1MDB embezzlement scandal – 25 October 2024
A Malaysian sovereign wealth fund co-founded in 2009 by then-leader Najib Razak has faced corruption probes in at least six countries. A court is set to determine on October 30 whether to acquit Najib or ask him to enter his defence on money laundering and corruption charges in a 1MDB-related case
Illegal cannabis crop worth more than $26 million seized by police in Leongatha South – 25 October 2024
Victoria Police have seized and destroyed more than $26 million worth of illegal cannabis plants in regional Victoria.Four men and one women were arrested at the scene and have been charged with cultivating and trafficking a commercial quantity of cannabis.
