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Investigation & Fraud News – Week ending 8 September 2023
11 stories this week:
‘Entrenched’ fraudster jailed over $1.2 million rort – 1 September 2023
Samir Mustum, has pleaded guilty to dozens of fraud charges for his role at the helm of a fraud syndicate, which used real people’s names to obtain credit, home loans and hundreds of mobile phones. He enlisted others to help create fake documents, including false IDs, payslips, bank statements and cards, to steal a total of $1,265,000 in property and credit from Telstra and banks including ANZ, NAB and Westpac.
https://www.perthnow.com.au/news/crime/entrenched-fraudster-jailed-over-12-million-rort-c-11770130
Melbourne woman Ashlee Frost jailed for ‘exploiting pandemic’ through sophisticated travel agent scam – 1 September 2023
Ashlee Frost, exploited the COVID-19 pandemic and has been jailed for defrauding victims out of more than $600,000 by scamming her employer and others. She would regularly cancel flight and accommodation bookings she made using the company-provided credit cards of the six executives. When credits from the cancelled bookings were reimbursed to her, she would sell them on at a discounted price.
Bearbricks are ‘the sweet spot’ for crooks seeking to launder money, experts say – 2 September 2023
When Singapore police executed simultaneous raids on premises across the city-state as part of a money laundering investigation last month, they seized more than a billion dollars’ worth of property and assets including 60 colourful, mostly plastic figurines in the shape of a pot-bellied bear ie Bearbricks. If a Bearbrick is worth, say, $100,000, the money launderer can purchase it with their dirty money with relatively little suspicion and then on sell to dealers who buy and sell and who are not regulated.
https://www.abc.net.au/news/2023-09-02/singapore-money-laundering-case-bearbricks/102794012
Former Hurstville mayor Philip Sansom says he was taken by surprise by ICAC corruption findings – 2 September 2023
Philip Sansom a former Hurstville councillor, has been found by ICAC to have acted corruptly for accepting return flights from a Chinese property developer in 2014 and potentially contravening “section 249B(1) of the Crimes Act. The offence deals with corruptly receiving or soliciting a benefit as an agent (including councillors) and carries a maximum penalty of seven years in prison.
Scandal after scandal: Is corporate Australia facing moral bankruptcy? – 4 September 2023
Roy Morgan’s, recent research shows that Business leaders, just like politicians, have shown an alarming arrogance in the face of corporate scandals and its time that many companies checked the packaging on their executives for a use-by date. Its survey released last week showed that Australians had never been more distrusting of corporate Australia.
ASIC to take Westpac to court over financial hardship failures – 4 September 2023
Westpac is being taken to court after the corporate watchdog alleged it failed to respond to 229 financial hardship notices, within the required 21 days. ASIC further claims Westpac didn’t do enough to investigate and rectify systems issues affecting its online hardship notification process.
The ICAC begins ‘preliminary investigation’ into former NSW minister Tim Crakanthorp – 7 September 2023
ICAC has begun a probe into whether former New South Wales minister Tim Crakanthorp breached the ministerial code of conduct. Mr Crakanthorp was referred to the ICAC in August and stripped of his portfolios after failing to disclose family property holdings in the Hunter region. It sparked a review of planning decisions for major renewal project in Newcastle.
https://www.abc.net.au/news/2023-09-07/tim-crakanthorpe-being-investigated-by-icac/102824736
Dodgy dealers could wind up in jail for odometer scams – 7 September 2023
Any SA dealer found guilty of winding back a car odometer could be jailed for up to two years or face a maximum fine of $30,000, under legislation to go before state parliament before the end of the year. For those found to be operating while unlicensed, the proposed penalty for a third or subsequent offence would be increased from one to two years behind bars with the maximum fine climbing from $100,000 to $250,000. The changes would give SA some of the toughest penalties across the country. Only Queensland and NSW impose jail sentences for unlicensed dealing and only Queensland and Victoria have jail as an option for winding back an odometer.
Luxury cruise liner MS Caledonian Sky under investigation by Fair Work Ombudsman – 7 September 2023
A luxury cruise liner that was arrested off Western Australia’s north coast over a management dispute, is now under a separate investigation by the Fair Work Ombudsman for underpaying employees over a six month period. Australian Pacific Touring (APT) has rejected the allegations of wage theft and the baseless criticisms of its practices.
https://www.abc.net.au/news/2023-09-07/cruise-liner-ms-caledonian-sky-under-investigation/102811842
An alleged love scam has cost three men nearly $500,000, and there may be more victims – 7 September 2023
An alleged romance scam has left three men duped out of almost $500,000 and a trio facing a string of fraud charges. Police believe there are more people across Australia that may have been defrauded by the same alleged perpetrators.
Australia’s top police met with Clearview AI after it was slammed for breaking nation’s privacy law – 7 September 2023
Article details how the AFP leadership has continued to meet with Clearviews company’s CEO, even after the information and privacy commissioner’s directive to stop the use of Clearview AI’s controversial technology, due breaking privacy laws. Greens Senator for NSW and digital rights spokesperson David Shoebridge said the continued meetings were deeply troubling.
https://www.crikey.com.au/2023/09/07/clearview-ai-australian-federal-police-meetings/
ASIC sues AustralianSuper over duplicate member accounts – 8 September 2023
ASIC is suing Australia’s biggest super fund over its failure to consolidate the accounts of more than 90,000 members, It is alleged that AustralianSuper failed to have adequate policies and procedures in place to merge duplicate accounts despite their duty to act in members’ best interests, costing those individuals a collective $69 million.
Investigation & Fraud News – Week ending 1 September 2023
11 stories this week:
The lies conspirators behind Plutus Payroll ATO tax evasion scheme told themselves – 26 August 2023
Lawyer Dev Menon didn’t think that any forensic accountant in the world would be able to untangle the mess that cost the government $105 million dollars. But police were secretly listening – and were up for the test. Plutus Payroll would collect gross wages from employers and then second-tier companies would be used to pay the wages. But rather than taking out the tax owed and paying it to the ATO, the second-tier companies would skim off money and distribute it to the conspirators. The AFP collected more than 30 terabytes of digital evidence and served 10,000 pages for the brief that resulted in a marathon trial that led to guilty verdicts for the five conspirators.
Australia’s federal whistleblowing laws have not protected anyone since inception, analysis shows – 29 August 2023
Human Rights Law Centre says there has ‘not been a single successful case’ brought by a whistleblower under federal laws designed to protect those who speak out. The unsuccessful cases showed cases often failed due to an inability to causally link an act of reprisal to a whistleblower’s decision to speak out. Whistleblowers were also self-represented in 21 of the unsuccessful cases, which suggests “access to justice is an acute issue”.
https://www.themandarin.com.au/229018-latest-official-aps-guidance-for-whistleblowers/
ASIC to crack down on predatory lending – 29 August 2023
ASIC has unveiled its plans to intensify efforts against predatory lending practices, aiming to safeguard both vulnerable consumers and small businesses, as part of its recently released corporate strategy. The strategy underscores ASICs emphasis on combatting scams linked to cryptocurrency, artificial intelligence, and predatory lending.
https://www.mortgagebusiness.com.au/regulation/18283-asic-to-crack-down-on-predatory-lending
https://www.cryptopolitan.com/asic-to-utilize-artificial-intelligence/
Doctor ‘double dipping’ difficult to detect and potentially unchecked, SA ICAC warns – 29 August 2023
In an Independent Commissioner Against Corruption (ICAC) report, commissioner Ann Vanstone wrote she was also frustrated by “stalled” efforts within SA Health to address concerns raised in a report published by her predecessor, Bruce Lander, in 2019. She states that there is “a real risk” of corruption and misconduct within the state’s health system.
Donald Trump is facing 91 criminal charges and a range of civil lawsuits. Here’s how his legal problems are lining up – 29 August 2023
Former US president Donald Trump is facing 91 criminal charges and a range of civil lawsuits. He has pleaded not guilty to all charges in three of those cases and is due to enter pleas relating to the Georgia election interference case in September. In addition to his criminal indictments, Mr Trump and his lawyers are working to fend off three major civil cases against him. Article details how Mr Trump’s legal problems are set to play out in the lead-up to next year’s presidential election.
FBI helps seize control of million-dollar global malware network Qakbot – 30 August 2023
The FBI and European partners have infiltrated and seized control of a major global malware network that had crippled businesses and technology users for more than 15 years. Qakbot has caused hundreds of millions of dollars in damage since first appearing in 2008. Where $13.3 million in cyber currency was seized or frozen during the investigation. Qakbot gave criminal hackers initial access to computers via phishing emails.
https://www.abc.net.au/news/2023-08-30/fbi-europol-seize-control-of-malware-network-qakbot/102793266
Is there a difference between white collar crime and corporate crime? – 30 August 2023
The paper talks about the differences between white collar crime and corporate crime, the penalties, the bodies involved, the overlap between offences and the relevant legislation for both.
Party’s over for student visa fraud, Australian government says – 30 August 2023
A federal government crackdown on “rorts” of Australia’s international student visa system is to take effect immediately. Home affairs minister Clare O’Neil announced that students would have to be in the country for at least six months before moving to “concurrent enrolment” status, which allows more working hours. In a statement, O’Neil said that concurrent enrolment had become an “integrity issue” in international education.
CCC boss tells parliament authorities may have ‘failed in their duty’ before Jacob Anthonisz fraud charges dropped – 31 August 2023
WA’s head corruption fighter has told a parliamentary committee, that authorities may have “failed in their duty” to properly investigate Jacob Daniel Anthonisz, the alleged accomplice of a corrupt WA public servant, Paul Whyte, leading to hundreds of charges against him being dropped. Investigators had labelled the saga as one of the nation’s single biggest investigations into public sector fraud.
Telstra-owned Pacific mobile network likely exploited by spies for hire – 3 September 2023
A Telstra-owned mobile phone operator in the Pacific Islands has likely been used by private spy firms to track people on the other side of the world and steal their data, according to expert cybersecurity analysis.
‘Hundreds of millions’: ACCC calls for heavy Qantas fine – 3 September 2023
Australian Competition and Consumer Commission chair Gina Cass-Gottlieb, has said Qantas should pay a penalty of hundreds of millions of dollars if found guilty of extensive breaches of consumer law, after the airline group allegedly advertised tickets for thousands of already cancelled flights in 2022.
Investigation & Fraud News – Week ending 25 August 2023
10 stories this week:
Nuix insider lifts the lid on share market float disaster, as ASIC faces hearings into its role – 21 August 2023
A parliamentary inquiry into the performance of the ASIC, kicks off this week and it promises to be explosive. One of its case studies will be the scandal-ridden tech company Nuix, which torched billions of dollars of shareholder value. A former global vice-president at one of the country’s most disastrous share market floats in years has broken his silence and says he wasn’t surprised when the share price crashed, wiping billions of dollars from the fortunes of investors.
https://www.abc.net.au/news/2023-08-21/asix-nuix-senate-inquiry/102749880
Adam Cranston jailed over $105 million Plutus Payroll tax evasion scheme – 22 August 2023
Adam Cranston, the son of a former Australian Taxation Office (ATO) deputy commissioner, has been jailed for a maximum 15 years over his role in a $105 million tax evasion conspiracy. Between 2014 and 2017, a company called Plutus Payroll collected gross wages from employers, that should have gone to the ATO by way of GST and Pay As You Go (PAYG). They used fake subsidiary companies to carry the tax debt to give Plutus a “clean” appearance.
National Anti-Corruption Commission’s real challenge is leadership. Will it learn the lessons of the Robodebt investigation? – 22 August 2023
Finally a reality, the NACC must now prove its worth. It won’t be a test of design, nor of its powers, but rather a test of leadership. In the first 24 days of operation, the National Anti-Corruption Commission took receipt of almost 500 referrals.
https://www.abc.net.au/news/2023-08-22/national-anti-corruption-commission-robodebt/102749720
Foreign bribery: High Court rejects ‘net benefit’ approach to monetary penalties – 22 August 2023
The maximum monetary penalty for a company which bribed, or conspired to bribe, a foreign public official should not include a deduction for costs incurred in performing the contracts, according to the High Court of Court of Australia following its decision in The King v Jacobs Group (Australia) Pty Ltd [2023] HCA 23, handed down on 2 August 2023. This decision reinforces the significant monetary penalties that may apply to businesses found to have committed a foreign bribery offence.
Operation Elbrus: Trio jailed over tax fraud – 22 August 2023
Three men have been jailed for their roles in a large-scale tax fraud and money laundering syndicate, responsible for defrauding the Australian tax system of more than $105 million over three years. Operation Elbrus revealed that a group of people used payroll services companies to divert pay-as-you-go withholding tax and goods and services tax owed to the Australian Taxation Office.
https://www.miragenews.com/operation-elbrus-trio-jailed-over-tax-fraud-1069535/
Hisense Executive Jailed Over Multi Million Dollar Fraud – 22 August 2023
Aphrodite Myron, a former senior Hisense executive who was accused of stealing $3.4 million over several years to feed her gambling addiction, has been jailed. Hisense ended up paying $3,383,56 into 35 separate bank accounts set up by Myron under her and her family’s names. The call centre boss had falsified documents with payment details linked to bank accounts in her or her family’s name.
Are Aussie banks adequately addressing fraud concerns? – RFI Global – 23 August 2023
RFI’s study reveals that one in five Australians have been victims of banking fraud. Older Australians appear to be especially at risk, with about 63% having encountered communications with scammers. It’s a balancing act for banks as whilst customers demand rigorous security, they also expect a seamless banking journey.
Scammers buying Australians’ personal details on the dark web for as little as $38, research finds – 23 August 2023
The Australian Scam Culture Report by financial services firm BDO reveals 2.7 million people use the dark web each day – and scam-based activity, including accessing credit card, email and social media details, as well as corporate data, accounts for up to 23 per cent of trades over online black marketplaces. Scammers can access Australians’ hacked credit card details for just $38 on the dark web, while unauthorised Facebook and Instagram access are on sale for just over $100.
ICAC granted exemption to use illegally recorded conversations during Toplace investigation – 24 August 2023
An exemption until 2025 has been granted, that will allow the corruption watchdog in New South Wales, to listen to illegally recorded conversations during its investigation into development company Toplace. The attorney-general told NSW parliament the amendment would help ICAC’s statutory functions.
How to blow the whistle on your employer and avoid reprisal – 24 August 2023
The world of whistleblowing is treacherous. People who dob in an employer or the government run the very real risk of losing their job, going bankrupt or going to prison. The Human Rights Law Centre (HRLC) estimate that 80 per cent of whistleblowers in Australia report suffering personal reprisals for speaking up. The Whistleblower Project legal service will help guide people through the process and represent their interests as they attempt to expose misconduct.
Investigation & Fraud News – Week ending 18 August 2023
13 stories this week:
Tax accountant James Redmond Burrows jailed for stealing to fund gambling addiction – 11 August 2023
Tasmanian tax accountant James Redmond Burrows stole money from 25 clients and the ATO by claiming dividends his clients weren’t entitled to, failing to pass on income tax returns, or retaining GST refunds for himself. Burrows will need to serve four years and three months of the sentence term before applying for parole.
FTX founder Sam Bankman-Fried headed for jail after US judge revokes bail – 11 August 2023
A US judge revoked Sam Bankman-Fried’s bail, after finding probable cause that the indicted founder of the bankrupt FTX cryptocurrency exchange tampered with witnesses at least twice. The decision could complicate Bankman-Fried’s efforts to prepare for trial, where the 31-year-old former billionaire faces charges of having stolen billions of dollars in FTX customer funds to plug losses at his Alameda Research hedge fund.
AFL Hawks racism report author facing fraud claim – 11 August 2023
Phil Egan, a former AFL player has faced court accused of defrauding a Victorian Aboriginal service of hundreds of thousands of dollars. Egan faced Melbourne Magistrates Court, charged with 73 offences including obtaining financial advantage by deception from the co-op, and using false documents. It’s alleged he secretly gained $779,000 through 52 supplier invoices paid by Murray Valley Aboriginal Co-operative.
https://au.news.yahoo.com/afl-hawks-racism-report-author-072208760.html
Cops crack alleged bank card fraud plot – 13 August 2023
Five foreign nationals have been charged over an alleged plot to install ATM card skimmers and create fake bank cards to swindle Australians out of their money. They allege the accused installed ATM skimmers to clone a person’s EBT card details and PINs, then at the beginning of each month they would re-encode the cloned bank cards to visit ATMs and withdraw the newly loaded funds. During a search, US authorities found a receipt for a consignment sent to Australia and tipped off the AFP.
https://au.sports.yahoo.com/cops-crack-alleged-bank-card-231900802.html
Australia’s Biggest Tax Fraud Is A $4.6-Billion TikTok-Driven Scheme – 14 August 2023
The Australian Tax Office (ATO) has accused influencers on TikTok of perpetuating the largest tax fraud in Australian history. The ATO has admitted paying out AUD$1.2 billion in fake GST claims, after a viral trend exploded on the platform in mid-2021. The scam involved submitting fake invoices worth up to hundreds of thousands of dollars in a bid to claim back refunds on GST.
https://thedeepdive.ca/australias-biggest-tax-fraud-is-a-4-6-billion-tiktok-driven-scheme/
SkyCity Adelaide Casino sets aside $45m to cover potential penalty, court case continues – 14 August 2023
The Australian Transaction Reports and Analysis Centre (AUSTRAC) launched Federal Court action against SkyCity in December, alleging systemic non-compliance with anti-money laundering and counter terrorism financing laws. AUSTRAC’s court documents stated SkyCity “failed to carry out due diligence on 124 customers” – a breach of laws that could result in fines of more than $2 billion. SkyCity says it has set aside $45 million to cover a potential penalty.
Trump indictment: Second set of charges arising from efforts to overturn the 2020 election results – as it happened – 15 August 2023
Donald Trump has been indicted following a Georgia prosecutor’s investigation into the former US president’s efforts to overturn his 2020 election loss in the state. The former US President insists he will release his own report into the so-called “election fraud” in Georgia.
Gina Rinehart trial shown explosive memo that allegedly tried to cut children’s inheritance – 16 August 2023
A WA court has heard that Gina Rinehart has deliberately deflated the value of mining shares in a family trust to the detriment of her own children’s inheritance. The 1994 memo forms a key part of allegations previously heard in the court that Mrs Rinehart engaged in “fraud” regarding the family trust, which had been created by her late father Lang Hancock. A lawyer for her two eldest children described it as “an egregious breach of duty” and said it was part of a ploy for her to get more Hancock Prospecting shares.
https://www.abc.net.au/news/2023-08-16/gina-rinehart-mining-trial-hope-downs-royalties/102737016
Cory Fleming, friend of murderer Alex Murdaugh, sentenced after stealing millions in insurance settlements – 16 August 2023
Cory Fleming has been sentenced to nearly four years in prison for scheming to steal millions of dollars in insurance settlements. He and his law firm made about $US675,000 over the settlement, which has since been paid back. Fleming is the second associate of Murdaugh sent to prison since investigators began scrutinising every aspect of his life in June 2021 after his wife and son were shot to death at their South Carolina home.
Ilze Stephens fined for helping son defraud Department of Defence through rent allowance payments – 16 August 2023
Ilze Stephens, a grandmother who helped her son defraud the Department of Defence of close to $100,000 appeared visibly relieved as she was told she would not spend any time behind bars. The charges relate to the 71-year-old nurse’s role in a scheme led by her son, former army major Travis Stephens, that saw him receive $91,705 in rent allowance payments, which he was not entitled to.
DoorDash hit with $2m fine by ACMA for breaching spam laws – 16 August 2023
Online food delivery service DoorDash has been slapped with a $2 million fine for breaching spam rules. An investigation by the Australian Communications and Media Authority (ACMA) found DoorDash sent more than 1 million texts and emails that breached spam regulations between February and October last year. DoorDash will now have to make regular reports to the watchdog.
https://www.abc.net.au/news/2023-08-16/doordash-issued-2m-fine-for-spam-texts/102735232
How scammers use phishing attacks to ‘socially engineer’ their way into your savings – 17 August 2023
Craig McDonald, founder of Australian cybersecurity firm MailGuard, says phishing has evolved into its own underground industry. Scammers recruit qualified coders and developers and support staff from across the globe, and offer 24/7 support for customers, because they’re selling a service at the end of the day, albeit an illegal one. The fake webpages will require victims to enter personal information such as bank account details or email passwords. This information is then used to access bank accounts, where the scammer can transfer money to themselves at will.
https://www.abc.net.au/news/2023-08-16/ing-bank-scams-phishing-refunds-consumers-afca/102732906
Sixth Sydney Man Charged in Million-Dollar Cyber Scam – 17 August 2023
The AFP has arrested and charged a sixth Chinese national living in Sydney as part of an investigation into an organised criminal syndicate, involved in a cyber-enabled investment scam, that has resulted in more than US$100 million in losses worldwide. Investigators will allege the highly-sophisticated scam involved the unlawful manipulation of legitimate electronic trading platforms, normally licensed to foreign exchange brokers who then provide the software to their clients.
https://www.miragenews.com/sixth-sydney-man-charged-in-million-dollar-1067097/
