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Investigation & Fraud News – Week ending 3 November 2023
12 stories this week:
Queensland woman caring for sick husband warns of elaborate employment scam after losing savings – 29 October 2023
A Queensland woman has lost her life savings in an elaborate online employment scam targeting vulnerable people looking for online work. She was falsely employed and manipulated by the scammers for about three weeks and lost $15,473. Financial Services Minister Stephen Jones says the National Anti-Scams Centre has reported an increase of more than 740 per cent in employment scams in 2023, with losses since January this year reaching $20 million.
Queensland public sector whistleblowing laws need a new act – 30 October 2023
Queensland’s public sector whistleblowing legislation has come under the spotlight, prompting a recent review by Alan Wilson KC. The report outlines 107 recommendations which advocate for a transformative shift, specifically the introduction of a new act to replace the existing Public Interest Disclosure Act 2010 (PID Act).
https://www.themandarin.com.au/233498-queensland-public-sector-whistleblowing-laws-need-a-new-act/
Robyn and Ashley Garratt face court for allegedly defrauding York Community Resource Centre – 30 October 2023
A prominent Wheatbelt couple have faced court charged with defrauding the York Community Resource Centre (York CRC). Robyn Garratt was charged with five counts of fraud by forgery and two counts of stealing as a servant. She has now had six additional charges added by police after a follow-up search warrant. Mr Garratt is facing two charges relating to the same investigation – one of benefiting from fraud and one of property laundering.
Sam Bankman-Fried, former cryptocurrency billionaire, has testified at his fraud trial. Here’s what he said – 31 October 2023
Former billionaire Sam Bankman-Fried is currently standing trial for fraud in New York. He is accused of stealing billions from his cryptocurrencycustomers, to pay the bills for his other ventures. The key moments from his testimony are outlined in this article.
High-ranking Tasmanian public servants named under parliamentary privilege over potential misconduct allegations – 31 October 2023
An independent MP (Meg Webb) has used parliamentary privilege to name 22 current and former Tasmanian public servants the commission of inquiry into child sexual abuse may have levelled allegations of misconduct against. Ms Webb said the commission “made it clear” that because it had been blocked by “legislative impediments and calculated legal wrangling on the part of the state, it was not able to finalise the apparently intended adverse findings and findings of misconduct”.
Unlicensed builder Mark Anthony Webster sentenced to jail for defrauding victims out of more than $600,000 – 1 November 2023
An unlicensed builder has been sentenced to seven and a half years in prison for taking more than $600,000 from clients and spending it on the pokies. Mark Webster was contracted to complete shop fit-outs for restaurants and retail stores after responding to ads online. He used aliases and would provide clients with a false business name, ABN and QBCC registration number. He was given a non-parole period of two years.
https://www.abc.net.au/news/2023-11-01/mark-anthony-webster-builder-fraud-sentence/103046188
Man, 81, faces court accused of stealing more than $900K meant for superannuation, investments and loan – 1 November 2023
An 81-year-old Hackham man has been accused of stealing hundred of thousands of dollars from people, who thought they were putting money into their superannuation funds and other investments. Robert Wayne Collins is charged with 10 counts of aggravated theft and one of aggravated dishonest dealing. Police allege he stole more than $900K intended for investments, superannuation and a loan.
https://www.abc.net.au/news/2023-11-01/robert-wayne-collins-accused-stealing-over-900k/103048036
The basic check banks aren’t doing to prevent scams – 1 November 2023
Most Australian banks don’t check that BSB and account numbers match the name of the account customers are sending money to. Account name matching is a basic anti-scam measure that has blocked many fraudulent transactions in other countries. In July 2022, the ACCC called on the banking sector to establish an industry-wide account name checking system, but that has yet to happen.
https://www.choice.com.au/money/banking/everyday-banking/articles/bank-account-name-matching
ASIC removes thousands of scam pages in takedown blitz – 2 November 2023
More than 2100 investment scam websites purporting to offer high-risk products like crypto assets and FX derivatives have been removed since July, the Australian Securities and Investments Commission revealed, with around 20 dodgy websites taken down per day.
Romance scam behind $228m Chinese money laundering ring – 2 November 2023
A $228 million Chinese money laundering syndicate was allegedly linked to a romance investment scam run by an organised crime network. The company, which operates 12 retail shopfronts across Australia, is accused of being used as a front to transfer money to illegitimate customers and conceal about $228 million from regulators. The syndicate allegedly funnelled money into bank accounts set up in the names of relatives and associates, the court was told, with seven people arrested last week over their alleged involvement.
Trial hears of alleged indecent assault, toxic culture at regional WA prison – 3 November 2023
A two-day trial in a regional WA court, heard damning allegations of bullying, harassment and toxic workplace culture at multiple WA corrective services facilities. A woman allegedly indecently assaulted a female colleague at a regional prison last year. The accused says she has been a victim herself, at the prison and another work site.
https://www.abc.net.au/news/2023-11-03/regional-prison-indecent-assault-toxic-culture/103048436
Letter from Melbourne lawyer John Adams reveals operation of alleged mortgage Ponzi scheme – 3 November 2023
The ABC has obtained a letter showing in 2019 John Adams who passed away suddenly at the age of 81 last month, was offering investors returns about eight times those offered by banks for term deposits. Mr Adams’s business partner of almost 50 years, Shane Maguire, alerted authorities to the potential fraud. The Victorian Legal Services Commissioner is working with police, to investigate whether Mr Adams misappropriated funds invested in the mortgage lending scheme, he operated out of his firm’s Ivanhoe office for more than 40 years.
Investigation & Fraud News – Week ending 27 October 2023
13 stories this week:
Harmful or Harmless? What We Know About Electronic Partner Surveillance – 20 October 2023
Electronic partner surveillance means using technology to monitor a romantic partner’s activities. Partner surveillance is often considered an expression of jealousy, insecurity, and distrust. Yet many partners engage in surveillance for practical or caring motivations. Article explains that Electronic surveillance should only be used in ways that respect both partner’s autonomy and privacy.
Man pleads guilty to fraud after using stolen money to lure international cricket players to Australia – 20 October 2023
Navishta Desilva, has reportedly defrauded his employer of nearly AUD 250,000. He stole money to bankroll a suburban cricket competition featuring some of the sport’s biggest names and could face jail. He has pleaded guilty to obtaining financial advantage by deception in a bid to put on T20 cricket tournaments featuring high-profile international players.
Google feature Dark Web can reveal which of your personal details have been exposed online. Here’s how to use it – 20 October 2023
Google has introduced a feature which can pin-point which of your personal information has been leaked to the dark web. The special feature used to only be available to Google One subscribers for a fee, but is now accessible to Gmail account holders and Android phone users. This article explains.
Seven people charged over international money laundering and drug rin – 21 October 2023
Seven people have been charged over an alleged international money laundering and drug ring operating out of New South Wales. A 37-year-old man in Vietnam was allegedly found to be converting large sums of money to cryptocurrency for allegedly organising drugs supply in NSW.
Little Athletics Tasmania president stole fundraising money and rigged Thermomix raffle, court hears – 24 October 2023
A former president of Little Athletics Tasmania has pleaded guilty to stealing more than $10,000 from its fundraising account. In February 2019, Rhonda Ruth O’Sign was queried over several transactions and admitted she had used the account inappropriately. She resigned and reported to police.
Former Victorian MP Russell Northe sentenced to jail for misconduct while in public office – 25 October 2023
Former Victorian MP Russell Northe has been jailed for using more than $170,000 of public money to gamble on sports betting apps. Northe was charged with 45 offences in 2022 after an investigation by IBAC.
Fraud Unit charge man following investigation into fraudulent finance applications worth over $2m – 25 October 2023
Fraud Unit detectives have charged a man and executed four search warrants as part of an investigation into allegedly fraudulent finance and loan applications under Strike Force Onsite. It is alleged that the syndicate applied for fraudulent finance applications to at least three companies to the value of $2,147,535.00.
Scam recruiters dupe vulnerable jobseekers out of $20m – 25 October 2023
Scammers posting fake job offers and impersonating recruiters duped jobseekers out of $20 million this year, an “alarming” 740 per cent increase on last year, the government says. The scammers target vulnerable groups such as students looking for part-time work, people seeking side jobs and those from different cultural or linguistic backgrounds.
Corruption claims – 26 October 2023
Allegations of corruption and forgery were aired at the civil trial over allegations of unfair dismissal by NAAJA’s former CEO Priscilla Atkins. Ms Atkins has alleged she was dismissed after raising complaints of corruption against Ms Rosas and NAAJA’s chief financial officer Madhur Evans. https://www.abc.net.au/news/2023-10-23/nt-former-naaja-priscilla-atkins-wongful-dismissal-trial/103009676
Cameron Blaine, who helped rescue Cleo Smith, focus of Corruption and Crime Commission misconduct probe – 26 October 2023
A Western Australia’s Corruption and Crime Commission report has found that a senior police detective who helped rescue Cleo Smith, leaked confidential police information about the little girl’s kidnapping to a young journalist he was seeing.
Melbourne man charged for helping launder tens of millions from cybercrime victims – 26 October 2023
The AFP has charged a Chinese national for allegedly using an Australian-based crime syndicate to help launder $100 million stolen from victims who invested in a global investment scam. The Melbourne man, 37, is the seventh person charged under Operation Wickham, a joint operation between the AFP and the United States Secret Service (USSS).
ASIC fails to prosecute a single builder suspected of insolvent trading, despite ‘devastating’ impact on home owners – 26 October 2023
The latest figures show three in four construction that folded in the 2021-22 financial year alone were suspected of insolvent trading, according to initial reports lodged by external administrators with ASIC. Despite the figures, an ASIC spokesperson admitted no criminal or civil action had ever been taken against a builder or construction company director in Australia over the misconduct. A parliamentary inquiry is currently scrutinising whether ASIC is slow to act and failing to protect “ordinary Australians”
FTX founder Sam Bankman-Fried testifies without jury – 27 October 2023
FTX founder Sam Bankman-Fried has testified at his fraud trial outside the jury’s presence, that lawyers at his now-bankrupt cryptocurrency exchange were involved in key decisions at the heart of the case. Accused of stealing billions of dollars from unwitting customers, Bankman-Fried has pleaded not guilty to two counts of fraud and five counts of conspiracy. If convicted, he could face decades in prison.
Investigation & Fraud News – Week ending 20 October 2023
10 stories this week:
Kathy Jackson was hailed as a whistleblower against union corruption – until one man revealed her secrets – 14 October 2023
Health Services Union whistleblower Kathy Jackson was heralded as ‘a lion of the union movement’ after revealing two union bosses had misused funds. One, Michael Williamson, was a former Labor Party president and the other, Craig Thomson, was a government MP. But she too was later found to be a fraudster who had misappropriated hundreds of thousands of dollars in union members’ money.
Police charge prominent York woman with defrauding WA community resource centre – 17 October 2023
Robyn Garratt, a woman from Western Australia’s Wheatbelt region has been charged with misappropriating funds from a small town’s community resource centre. She has been charged with five counts of fraud by forgery and two counts of stealing as a servant. The centre went into voluntary administration in July, citing financial troubles
Misconduct crackdown: Victoria to establish integrity commission investigating MP misconduct – 17 October 2023
https://www.abc.net.au/news/2023-10-17/victoria-to-establish-integrity-commission/102988678
Man charged with 140 financial fraud related offences to the value of nearly $750,000 – Strike Force Meckiff – 18 October 2023
A man will face court, charged by Financial Crimes Squad detectives following an investigation into 140 alleged financial fraud related offences under Strike Force Meckiff. Between April and June 2023, police will allege the company submitted fraudulent finance applications on behalf of 79 customers for the purchase of solar panels to the value of $747,308 – without customers’ knowledge.
Treasurer calls for government agencies to improve cyber security after Super SA breach – 18 October 2023
The South Australian government says data belonging to a significant number of people has potentially been accessed through a cyber security breach. The hackers stole data from a call centre previously contracted by Super SA – a dedicated superannuation fund for state government employees.
https://www.abc.net.au/news/2023-10-18/sa-government-cyber-security-breach/102993794
Carpet F-bomber: ASIC deputy’s explosive tirade – 20 October 2023
The corporate regulator investigated its deputy chair Karen Chester over her expenses, as well as alleged expletive-laden tirade to a colleague in wake of questions about the claims.
Access to the digital version of the Australian required to read article
Three Chinese nationals sentenced in Adelaide after using stolen details from phishing scam – 18 October 2023
Three men were found to have downloaded stolen credit card details, which had been uploaded to the dark web. 28 Victims had their personal information compromised to the phishing scam linked to the 2022 Optus data breach and lost 26,000.
https://www.abc.net.au/news/2023-10-18/sa-chinese-nationals-stolen-information-fraud/102993490
‘Digital kidnapping’ scam becoming more sophisticated, as three cases detected in Sydney this month – 18 October 2023
International students in Sydney are being coerced into moving interstate and overseas as part of what police say are “virtual kidnapping” (faking own kidnaping) scams that are becoming increasingly sophisticated. The victims were ordered to pay up to $500,000 or face being deported to China, where they are told they have been implicated in a crime.
Former Donald Trump lawyer Sidney Powell pleads guilty in Georgia election interference case – 20 October 2023
Sidney Powell, a former lawyer for Donald Trump has pleaded guilty to aiding the former US president’s efforts to overturn his election defeat in the state of Georgia, agreeing to testify against him if called. Prosecutors allege Ms Powell conspired with others to access election equipment without authorisation.
Corruption and Crime Commission investigating ‘serious misconduct’ allegations in Cleveland Dodd’s Unit 18 death – 20 October 2023
WA’s Corruption and Crime Commission is investigating an allegation of serious misconduct following a teenager’s death a week after he was found unresponsive inside his cell at a problem-plagued prison unit. Cleveland Dodd, 16, died at Sir Charles Gairdner Hospital, a week after he attempted to take his own life while inside Unit 18, a hardened detention facility for juveniles in an isolated part of adult maximum security Casuarina prison.
https://www.abc.net.au/news/2023-10-20/corruption-crime-commission-unit-18-teenager-death/103002150
Investigation & Fraud News – Week ending 13 October 2023
11 stories this week:
Qld government orders second inquiry into forensic DNA testing – 5 October 2023
The Queensland government has ordered a second inquiry into forensic DNA testing following revelations 37,000 cases need reviewing. It comes months after Judge Walter Sofronoff found during the first inquiry last year that a series of factors including “mismanagement” and “dishonesty by senior managers”, had led to the failures within the state-run DNA lab. The new inquiry was launched following the discovery that about 7000 additional serious crime and sexual assault cases needed to be reviewed, as a result of insufficient automated DNA extraction methods.
A credible person – 7 October 2023
Gillian blew the whistle on her pedophile boss, Swansea MP and minister for Aboriginal Affairs Milton Orkopoulos. She’d photocopied office documents that helped police convict Milton for terrible crimes against young boys. It cost Gillian her job as an electorate officer but she believes he could have been stopped earlier so that victims would never have been victims.
Employers should review messaging and training around whistleblowing policies: Freshfields survey – 7 October 2023
According to a recent survey, more managers around the world want the identity of a whistleblower revealed, with 63 per cent in favour globally. The report showed that as whistleblowing is in the spotlight, global businesses need the right policies and processes in place to deliver an effective speak-up culture and support employees.
Rampant identity theft is turning scam victims like Ben into scapegoats for criminals – 8 October 2023
Ben is just one of many Australians that have fallen victim to identity fraud, and had their own trust turned against them. Ben initially was a victim of a scam himself, paying $300 to a scammer. He made the mistake of sending a picture of his licence to what he thought was a genuine ticket seller. But when people started messaging him, claiming that Ben had also scammed them out of money, alarm bells went off. Ben soon realised his identity had been stolen, with multiple accounts using his name and photos appearing on Facebook.
The ASIC Senate Inquiry delivers a reminder that whistleblowers should be protected, not punished – 9 October 2023
Stephen Helberg, a trained auditor with 40 years’ experience attempted to inform ASIC about a known corporate syndicate allegedly “masterminded by Mr David Sutton, an Australian citizen, that misled and deceived thousands of investors, most of them in Australia, and continued the illegal activities for many years… and still actively misleading investors”. He said the media listened and ASIC only took action when the story became public. Helberg told the Senate he was speaking up in the hope that investors would be protected. ASIC said in a statement its investigation was continuing.
Hightrade: Former boss of Chinese construction company Li Zhang guilty of multimillion-dollar tax fraud – 10 October 2023
The former boss of Chinese construction company Hightrade has had his bail revoked after being found guilty over his role in a multimillion dollar tax fraud. Li Zhang was found guilty of two charges after a lengthy jury trial. The 60-year-old was accused of conspiring to cause loss to the Commonwealth through the plot.
https://financefeeds.com/asic-charges-ex-bby-ceo-with-fraud/
Sam Bankman-Fried’s ex-girlfriend Caroline Ellison testifies against former billionaire in fraud case – 11 October 2023
Caroline Ellison, the tech executive who ran Bankman-Fried’s hedge fund while sometimes dating him, told the court he directed her to commit fraud. Her testimony could play a major role in convicting the 31-year-old, which could see him imprisoned for decades. Bankman-Fried was accused of stealing billions of dollars in FTX customer funds to plug losses at Alameda Research. He is facing eight criminal charges including wire fraud, money laundering, and conspiracy to commit fraud on the United States. He has pleaded not guilty, arguing that while he made mistakes running FTX, he never intended to steal funds.
https://www.abc.net.au/news/2023-10-11/sam-bankman-fried-court-case-ftx-alameda-research/102961926
Online Phishing Scams And What To Look Out For – 11 October 2023
Phishing and identity theft are no joke, and unfortunately only becoming more and more common. Article details the tips and trips, to greatly reduce your chances of being scammed. It also lists some fantastic, comprehensive tools available to help you either avoid these scams, or help solve the problem should the worst occur.
https://au.pcmag.com/security/102060/online-phishing-scams-bitdefender-premium-security
Urgent Urgent Reform is needed for Australia’s inadequate whistleblower protections – 11 October 2023
Griffith University’s Centre for Governance and Public Policy, the Human Rights Law Centre and Transparency International, have jointly published a new report, Protecting Australia’s Whistleblowers: The Federal Roadmap. The report outlines 12 steps that the government must take in the months ahead to ensure Australia’s whistleblowers are able to tell the truth about wrongdoing without fear of retaliation. The Federal Government has indicated that significant reforms will be considered to the PID (Public Interest Disclosure) Act, and there is a golden opportunity during the review of the Corporations Act happening next year.
https://www.lexology.com/library/detail.aspx?g=b1ac6510-997c-432d-af88-79a32501422b
Trump ‘fraudulently obtained loans’: ex-bank official – 12 October 2023
A retired bank official has testified that Donald Trump obtained hundreds of millions of dollars in loans using financial statements that a court has since deemed fraudulent. A judge last month ruled the former president and his company, committed years of fraud by exaggerating the value of Trump’s assets and net worth on the financial statements he gave to banks, insurers and others to make deals and secure loans.
https://www.perthnow.com.au/news/crime/trump-fraudulently-obtained-loans-ex-bank-official-c-12179794
Ex-chief of collapsed stockbroker BBY charged – 12 October 2023
The former chief executive of failed stockbroker BBY Arunesh Narain Maharaj of Sydney, New South Wales, has been charged with aiding, abetting, counselling or procuring fraud. According to the ASIC, the alleged fraud centers on BBY’s unauthorized drawing of additional funds from an overdraft facilitation account held with St George Bank. Each offence carries a maximum penalty of 10 years imprisonment.
https://www.moneymanagement.com.au/news/funds-management/former-ceo-failed-stockbroker-bby-charged
https://financefeeds.com/asic-charges-ex-bby-ceo-with-fraud/
