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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.
Investigation & Fraud News – Week ending 14 July 2023
10 stories this week:
Martin Lewis warns over ‘disgraceful’ new deepfake scam advert – 7 July 2023
Consumer finance expert Martin Lewis has warned over a “disgraceful” deepfake scam advert for an investment app, which he said will lead vulnerable people to lose money and ruin lives. The advert, which reportedly circulated on Facebook, appears to show Mr Lewis endorsing an Elon Musk-backed investment scheme through a video at his home.
https://au.news.yahoo.com/martin-lewis-warns-over-disgraceful-134924577.html
Job seekers fleeced by work from home scam – 8 July 2023
People seeking jobs with flexible work conditions such as working from home, have fallen foul of an employment scam that has so far claimed 20 victims in Western Australia, who reported losing a total of $510,000. To secure the job, victims are deceived into investing a substantial amount of money in crypto currency with the false promise of high returns.
https://www.haveagonews.com.au/news/job-seekers-fleeced-by-work-from-home-scam/
Sisters Debra and Chanelle Viney plead not guilty to defrauding Queensland drought scheme – 10 July 2023
A trial of two cattle station owners has heard allegations $131,000 was fraudulently obtained from a Queensland government drought relief scheme. The court heard that the sisters tried to defraud the system by submitting false claims for costs. The trial continues.
AFL chair, a former state treasurer and other business high-flyers – 10 July 2023
A fraudulent scheme pretending to sell air conditioners to BHP and promising a “10 times” return to investors has led to jail time for Steven Phillip Heaton who swindled some of the biggest names in Australian business. He suggested the mining giant would eventually buy 1,800 of his energy-efficient air conditioners but only two incomplete test units were delivered.
Sydney accountant charged over alleged $26m fraud – 12 July 2023
Benjamin Leigh Carter an accountant, with alleged links to the organised crime world has been charged with defrauding clients of $26 million. Police will allege that Mr Carter defrauded at least eight clients to the value of $26 million in a bid to fund his lavish lifestyle and gambling habit.
https://www.abc.net.au/news/2023-07-12/sydney-accountant-charged-fraud-clients/102591570
Robodebt victims considering civil action for compensation after royal commission findings – 12 July 2023
Australians targeted by the illegal robodebt income averaging scheme are considering their legal options a suggested there was evidence to support a further civil case. Robodebt is the informal name given to a debt recovery program which started in 2015 that falsely accused welfare recipients of owing money to the government. It automatically issued notices to people identified as having debts through a process of income averaging, unlawfully claiming almost $2 billion from 433,000 people.
How two ‘besties’ almost got away with scamming millions from NAB – 12 July 2023
As a team of police was searching Helen Rosamond’s terrace house in April 2018, they made an eye-popping discovery. Inside one of the Sydney businesswoman’s two safes was a million-dollar cheque. It was in a National Australia Bank envelope labelled “bank cheque Rosemary Rogers.” Five years after that police search, Rogers is in jail and Rosamond will be sentenced on Monday. This pod cast tells the story of how two ‘besties’ got away with scamming millions.
Corporate adviser Anthony Torre accused of stealing millions from clients pleads not guilty in Perth court – 13 July 2023
A high-profile corporate adviser accused of stealing more than $1.7 million from clients denied the raft of offences weeks after federal prosecutors claimed he was sacking his lawyers to delay the matter. Anthony Paul Torre was charged with five counts of stealing and eight counts of fraud last year.
Man arrested after allegedly selling fake gold bullion outside a Sunshine Coast service station – 14 July 2023
Police have charged a man over an alleged fake gold bullion scam on Queensland’s Sunshine Coast. Police say the bars were found to be gold-plated copper. He has been charged with three counts of fraud, one count of attempted fraud and two counts of possessing tainted property.
Cloncurry real estate agent Janessa Bidgood faces court on fraud charge – 14 July 2023
Police allege that Janessa Bidgood, a director at Outback Auctions and Real Estate, deliberately and dishonestly failed to present all offers to a seller in Mount Isa. She is accused of presenting her own offer as a buyer, as the sole offer available. This allegedly resulted in the landowner believing no other offer existed and led to the property being sold for approximately $27,500 less than another offer. She has been automatically suspended from her role as a councillor and matter has been adjourned.
