The following are articles relevant to the Professional Investigator. Click on the title to make a comment or join the conversation.
Investigation & Fraud News – Week ending 11 August 2023
12 stories this week:
It started with an Alibaba order. It could end with two brothers being deported – 4 August 2023
Two brothers from Pakistan could face jail time and deportation for their role in a scam that involved 2.4 million fake Australian postage stamps. The County Court heard how federal police raided the brothers’ Brunswick East apartment complex in March 2021, finding 35 boxes filled with counterfeit postage stamps. Police determined the number of seized stamps was approximately 2.4 million Australian stamps of various denominations with a face value of approximately $6 million.
Whistleblowers claim consulting giant KPMG rorted government to the tune of $1.8 billion over last decade – 7 August 2023
Whistleblowers working for a major consulting firm and the Department of Defence have lifted the lid on an alleged $1.8 billion scandal. Two workers, one from KPMG and the other from the Department of Defence, have accused KPMG of ripping off the government by submitting exorbitant invoices and billing for hours not worked while contracted. The company has also been accused of proposing new work already covered by existing contracts, sucking up public funds, and overcharging Defence through alleged financial errors.
Former US president Donald Trump seeks new judge in election fraud case – 7 August 2023
Former US president Donald Trump will seek a new judge in his election fraud case. Prosecutors filed a protective order prohibiting Mr Trump from sharing any legal materials with unauthorised people. Mr Trump’s lawyer said the actions at the centre of the allegations against the former president were requests, not directives.
https://www.abc.net.au/news/2023-08-07/donald-trump-seek-new-judge/102696236
Queensland whistleblower laws need new act: review – 8 August 2023
A review of the Public Interest Disclosure Act 2010, led by retired Supreme Court judge Alan Wilson KC revealed that a higher disclosure threshold should be enacted to target conduct involving corruption, serious maladministration, serious misuse of public resources and serious danger to the environment or public health and safety. The report also stated that the public sector should not be burdened by public interest disclosures which are solely personal workplace grievances, ideological in nature, or trivial.
https://au.news.yahoo.com/queensland-whistleblower-laws-act-review-093935680.html
New digital ID methods could help stem scam losses – 8 August 2023
Industry bodies are hoping the introduction of new digital identification methods will stem the amount of money lost to scams and payment fraud and limit the impact of widespread data breaches. It says once digital identification is created with a provider, it can be re-used across connected services without the need to repeatedly provide identity information to those services.
Melbourne identity theft victims speak out after losing $370,000 to fraudsters – 9 August 2023
The article describes how John and Julie were victim of fraudsters who had ported John’s mobile phone and accessed email accounts, messaged friends, family, and work clients in an effort to pull others into their web. The fraudsters had drained their bank accounts by at least $325,000, sold $45,000 worth of their shares, and created 20 credit and debit accounts in their names. John and Julie say they have lost trust in their banks and their telco, and live in a constant state of fear.
Investigation finds VicForests hired a private investigator to spy on environmental campaigners – 10 August 2023
An investigation has found Victoria’s state-owned logging agency has conducted “unlawful” surveillance of private citizens by hiring a private investigator to spy on them. The investigation found that sometime in 2010 and 2011, the private investigator conducted surveillance, collected personal information and took photos and video after being hired by the previous general manager of VicForests. VicForests has now been told to publish a new surveillance policy by the end of September 2023.
Melissa Caddick investors receive first payout three years after alleged fraudster vanished – 10 August 2023
Investors who lost between $20 and $30 million in Melissa Caddick’s alleged Ponzi scheme have received their first payout, three years after the scandal came to light. The money comes from the sale of her Dover Heights property, which sold for $9.8 million in January, and her share portfolios.
https://www.abc.net.au/news/2023-08-10/melissa-caddick-investors-receive-first-payment/102714524
Australian companies hit every seven minutes by a cyber attack – 10 August 2023
A new report by CrowdStrike found the top five most targeted industries over the 12 months to June were technology, telco, retail, financial services, and manufacturing. One potential intrusion was uncovered every 7 minutes over the year, many directed at consumer focused industries – where vulnerable account data, credit card details and other personal information is stored. Businesses need to have an equal or superior reaction, making sure they have the right visibility and no security gaps.
‘Gatekeepers’ to the board: regulators’ changing expectations of general counsel – 10 August 2023
General counsel have never been under such intense scrutiny. Regulators including the Australian Securities and Investments Commission (ASIC) are zeroing in on officers like general counsel, whom ASIC regard as ‘gatekeepers’, and seeking to hold them responsible for ensuring the prevention of corporate misconduct. Article explains the regulators’ expectations of general counsel in managing and highlighting risk and how these dynamics impact the role and the potential liability of general counsel.
Tasmanian greyhound trainer Anthony Bullock under council investigation over kennel licence – 10 August 2023
Mr Bullock had his Grey hound licence suspended last week while the Office of Racing Integrity investigates conditions at his property in the state’s north, after graphic footage taken at the Exeter property was released by an animal rights group. He is now also under investigation by the West Tamar Council.
ANZ Boosts Scam Fight with Mule Account Detection – 10 August 2023
ANZ has announced it is investing in a new security capability designed to detect mule accounts being used to receive funds from scam victims and other criminal activities. Utilising AI and machine learning, the mule detection capability recognises money mules and mule accounts and is an extension of the bank’s behavioural biometric technologies. The detection of mule accounts often leads to the dismantling of additional scam networks and prevents future scams.
https://www.miragenews.com/anz-boosts-scam-fight-with-mule-account-1063000/
Investigation & Fraud News – Week ending 4 August 2023
10 stories this week:
UK billionaire whose family trust owns Tottenham soccer club pleads not guilty to insider trading – 27 July 2023
Joe Lewis, the British billionaire whose family trust owns the Tottenham Hotspur soccer club has pleaded not guilty to insider trading in New York federal court. It was alleged that he fed corporate secrets to romantic partners, personal assistants, friends and his pilots, earning them millions of dollars illegally. Mr Lewis was charged with 16 counts of securities fraud and three counts of conspiracy.
https://www.abc.net.au/news/2023-07-27/joe-lewis-tottenham-billionaire-pleades-not-guilty/102654298
PwC reveals private settlement over undisclosed matter with Tax Office, as it contended with unfolding tax leak saga – 27 July 2023
PwC has confirmed that it privately settled with the Australian Tax Office (ATO) over an undisclosed matter, while the firm contended with a confidentiality breach within its ranks. At the time the firm was still claiming its confidentiality breach was contained to a single former partner. The Treasurer said he was not aware of the arrangement, and would raise it with the ATO.
https://www.abc.net.au/news/2023-07-27/ato-settled-with-pwc-before-tax-leak-scale-known/102654506
ATO reveals more than $550M lost to online fraud – 28 July 2023
The Australian Taxation Office (ATO) lost more than $557 million to fraudsters using personal details from hacks on Optus and Medibank to create fake MyGov accounts. The cyber criminals were able to bypass the identity checks that would normally be sent to the ATO’s customers by hacking their accounts, with the help of the previously compromised credentials.
Accountant admits transferring cash to ‘fraud account’ to pay gambling debts – 31 July 2023
James Redmond Burrows has pled guilty to 113 fraud-related charges over four years totalling $1.4million. A court has heard he used his clients money to fund his gambling addiction.
https://www.abc.net.au/news/2023-07-31/james-redmond-burrows-tax-agent-fraud-guilty-plea/102668756
Victoria’s anti-corruption watchdog in spotlight as fallout from Operation Sandon report continues – 31 July 2023
A property developer at the centre of a damning report by Victoria’s anti-corruption watchdog has defended himself in a lengthy press conference in Melbourne. The five-year investigation found developer John Woodman had plied suburban councillors with hundreds of thousands of dollars in exchange for project support.
https://www.abc.net.au/news/2023-07-31/operation-sandon-ibac-report-response-john-woodman/102669444
Australia: Whistleblower protections in the private sector – 1 August 2023
This article considers whistleblower protections in Australia, including:
protected disclosure schemes;
private sector whistleblowing;
what is a ‘protected disclosure’;
confidentiality and protection from victimisation;
remedies, penalties and compensation; and
privileges and immunity.
Former banker allowed to contact husband after fraud charges – 3 August 2023
Sara Daizli, a former bank staffer will be allowed to contact her husband after they were both allegedly involved in a financial scam syndicate. She has pleaded not guilty to 237 charges of defrauding financial institutions for her own benefit. Police claim the 31-year-old used her role at the bank to open accounts in fictitious names and allegedly siphoned money into her bank account under a false name.
Hawthorn Football Club cultural safety review author Phil Egan facing fraud charges – 3 August 2023
Phil Egan, the man who accused the Hawthorn Football Club of racism has been charged with 73 offences including obtaining financial advantage by deception, the use of false documents, and secret commission. The allegations of financial mismanagement relate to Mr Egan’s time as CEO of the Murray Valley Aboriginal Cooperative.
https://www.abc.net.au/news/2023-08-03/phil-egan-charged-fraud-offences-hawthorn-afl/102683484
Fraud squad tackles NDIS rorts as payments skyrocket – 3 August 2023
More than $400 million in NDIS payments are being investigated for fraud. The investigations are being overseen by a fraud task force, set up in October to examine rorts of the scheme.
Since April, an extra $100 million worth of possible fraudulent payments are being looked at by the task force.
Investigation & Fraud News – Week ending 28 July 2023
10 stories this week:
‘Everyone thinks I’m a criminal’: The Millennial money manager and the missing millions – 22 July 2023
Article details ASIC’s investigation into the failure of the Magnolia Group and missing millings. Magnolia operated a private lending business, sourcing capital from private investors when approximately $40 million in investor losses became unaccounted for.
Trevor Crawford, a decorated public servant, made allegations of government corruption. He says it cost him his career – and almost his life – 22 July 2023
Former public servant Trevor Crawford, who gave evidence to the Coaldrake review (Report into the culture and accountability in the Queensland public sector), said his career was subject to vexatious allegations and bullying after reporting an allegation of high-level corruption. Mr Crawford was quoted in the Coaldrake report and he has now raised serious concerns about how Queensland government whistleblowers are treated.
Bitcoin bonnie and clyde to plead guilty – 23 July 2023
Ilya Lichtenstein and Heather Morgan are reportedly preparing to plead guilty for their involvement in an alleged cryptocurrency laundering scheme worth $4.5 billion. The alleged cryptocurrency laundering scheme was a complex operation, and the couple is accused of attempting to move a vast sum of money through digital assets while concealing its origin.
https://tickernews.co/bitcoin-bonnie-clyde-to-plead-guilty/
AI misinformation attacks are inevitable, warns US expert – 23 July 2023
According to Kris Lovejoy, the global security and resiliency leader for Kyndryl, businesses and public agencies need to rehearse their responses to large-scale AI-powered misinformation and cyberattacks, so they can quickly bounce back. This means running tabletop exercises on scenarios regularly and planning responses.
Joint ATO operation smashes $137m fraud and exploitation ring – 24 July 2023
An ATO taskforce has smashed a $137 million fraud, money laundering and worker exploitation ring with the sentencing of a fourth Chinese national. Collectively, the criminals had withdrawn more than $137 million since arriving in Australia to facilitate cash payments for foreign workers being exploited in NSW and the ACT while avoiding tax.
Alleged money mule laundered $176k from fraudulent emails – 25 July 2023
A 23-year-old Melbourne man has been charged with allegedly laundering more than $176,000 stolen from businesses targeted by cyber criminals. The AFP claims the man acted as a money mule and facilitated the movement of money obtained through business email compromise (BEC) fraud and other cyber crimes.
Eight telcos breach consumer protection rules – 26 July 2023
The Australian Communications and Media Authority (ACMA) has taken action against eight telcos after they failed to provide adequate safeguards that help customers to avoid service restrictions, suspensions or disconnections. Non-compliance could lead to significant consequences, with potential penalties of up to $250,000 for failing to comply with an ACMA direction.
https://www.acma.gov.au/articles/2023-07/eight-telcos-breach-consumer-protection-rules
Tottenham’s billionaire owner Joe Lewis charged with insider trading in US – 26 July 2023
British billionaire Joe Lewis, owner of the Tottenham Hotspur soccer club and majority owner of Australia’s biggest premium beef producer AACo, has been charged with insider trading in the US. Federal prosecutors alleged in an indictment in New York that the 86-year-old passed on inside information from companies in which he was a large investor to friends, including his personal pilots, assistants, and romantic partners. Lewis, the founder of the investment firm Tavistock Group, faces more than a dozen charges, including securities fraud.
Digital access required to read SMH
ATO reveals more than $557 million claimed by fraudsters exploiting security loophole – 26 July 2023
The Australian Tax Office (ATO) has admitted to the ABC, that more than half a billion dollars has been claimed over the past two years, by fraudsters exploiting a glaring security gap in the agency’s identity checking system. Fraudsters create bogus my Gov accounts and stolen information (bank statements, a previous ATO assessment, PAYG summaries etc.) to switch your ATO account to theirs. Once they’ve established the link they can replace your bank details and then submit refund claims while pretending to be you.
https://www.abc.net.au/news/2023-07-26/ato-reveals-cost-of-mygov-tax-identity-crime-fraud/102632572
Ibac report could result in criminal charges after finding property developer paid MPs and councillors – 27 July 2023
Prosecutors will consider criminal charges after Victoria’s anti-corruption watchdog found millionaire property developer, John Woodman paid councillors Geoff Ablett and Sameh Aziz and made political donations to influence planning decisions in his favour. Acting commissioner says any evidence collected will be sent to Office of Public Prosecutions.
Investigation & Fraud News – Week ending 21 July 2023
9 stories this week:
What does the National Anti-Corruption Commission mean for the Northern Territory ICAC? – 14 July 2023
It has only been in operation for two weeks, but the National Anti-Corruption Commission (NACC) has already been inundated with 300 reports of misconduct and corrupt conduct. The federal NACC defines its task as “deterring, detecting and preventing corrupt conduct involving Commonwealth public officials.
https://www.abc.net.au/news/2023-07-14/nt-nacc-icac-corruption-overlap-reports-future/102588028
Australia’s Proposed New Bribery Law – 17 July 2023
Australia is looking to introduce a new foreign bribery law that includes a corporate failure to prevent offence and a stricter definition of corrupt payments. The proposed new legislation, the Combatting Foreign Bribery Bill, would remove the current requirement for prosecutors to prove that a defendant had a specific advantage in mind when paying a bribe. It would also introduce the offence of “improperly influencing” a foreign official.
Deloitte CEO defends $3.5m pay amid calls for reform, royal commission – 17 July 2023
The Senate inquiry into consulting firms has resulted in emerging themes that the partnership structure of the big four firms helps them escape the type of regulatory oversight and disclosure that other large private companies are subjected to, that self-regulation of the sector is not working effectively, and that the firms, especially the strategy firms, feel free to refuse to reveal details of their operations to the Senate committee.
Linx Employment under investigation for alleged mistreatment of Pacific Islander workers – 18 July 2023
Linx Employment is facing multiple investigations over allegations it failed to provide workers with their legally contracted 30 hours per week. The Australian Workers Union (AWU) claims about 190 workers from around the country have come forward with complaints about Linx Employment.
AFP pauses use of controversial surveillance tech Auror found in Woolworths, Bunnings – 18 July 2023
The Australian Federal Police (AFP) has suspended the use of surveillance platform Auror after a freedom of information (FOI) request revealed that more than 100 of its staff had used the platform – for more than a year in some cases – without considering privacy or security implications.
https://www.smartcompany.com.au/industries/retail/afp-pauses-controversial-surveillance-tech-auror/
Tennant Creek community leader Deb Cain charged with obtaining benefit by deception – 19 July 2023
Deb Cain, a Tennant Creek community leader and former manager at the local Aboriginal council has been charged with obtaining benefit by deception. At Tennant Creek Local Court, she was accused of using fraudulent working with children clearances and a national police check, which incorrectly stated she had no criminal history.
Woman who cheated NAB out of millions of dollars jailed for 15 years – 20 July 2023
Helen Mary Rosamond was handed a maximum sentence of 15 years in prison for embezzling millions of dollars from the National Australia Bank (NAB) Her co-offender and “bestie” Rosemary Rogers is currently serving an eight-year sentence.
The $62 million estimate of the total fraud is based on evidence provided in the trial by McGrathNicol’s forensic accountant partner Matt Fehon, who was employed by the NSW Police and NAB to examine business records of the Human Group in relation to the NAB fraud.
https://www.abc.net.au/news/2023-07-20/helen-rosamond-nab-fraud-sentencing/102624088
No local FTX reboot as ASIC cancels its Australian licence – 20 July 2023
About 30,000 Australian investors are embroiled in FTX’s bankruptcy proceedings after revelations last year that about $8.7 billion in customer money had been drained from individual accounts and used for personal trading and venture capital investments. ASIC has now once again cancelled FTX’s Australian financial services licence.
What creates an unethical workplace and how to stamp out bad behaviour – 21 July 2023
It’s more important than ever to understand how unethical behaviour thrives in a workplace – and how to stamp it out. The article talks about Harvard Business School professor Max Bazerman, who has written extensively about the connection between unethical work environments and complicity, which he defines as being involved with others in illegal or unethical activity. He’s particularly interested in how such scandals could be prevented from happening again.
