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Investigation & Fraud News – Week ending 2 June 2023
11 stories this week:
Judge sentences WA bookkeeper Kathleen Griffiths to more than three years jail over $750k theft – 29 May 2023
Kathleen Margaret Griffith, a 54-year-old bookkeeper has been sentenced to three years and four months jail for stealing nearly $750,000 from two employers over more than a decade. It appeared to be compulsive behaviour that had developed into a habit, and Griffiths was unaware of just how much she had taken.
PwC orders nine partners to go on leave amid tax scandal fallout – 29 May 2023
PwC has directed nine of its partners to take leave pending the outcome of an internal investigation into the leaking of confidential Australian government tax changes for large multinational corporations. The firm also announced that the chairs of its governance board and designated risk committee are stepping down, with two independent non-executive directors to be appointed to the governance board. PwC will also “ring fence” its provision of services to the federal government, with a standalone executive and governance board to oversee those operations from September onwards.
Adelaide’s SkyCity casino is coming under increasing scrutiny – here’s a look at why – 29 May 2023
South Australian authorities have just ramped up monitoring of the state’s only licensed casino, amid allegations of serious and systemic non-compliance with anti-money laundering and counter-terrorism financing laws. Dini Soulio, South Australia’s Liquor and Gambling Commissioner, has asked the casino to prepare a “program of work” for the commissioner, outlining what it’s doing to meet its regulatory obligations, including anti-money laundering, counter-terrorism financing, and gambling-related harm minimisation responsibilities.
https://www.abc.net.au/news/2023-05-29/adelaide-skycity-casino-is-under-further-scrutiny/102404906
Crown Resorts and AUSTRAC agree to $450 million fine over money laundering breaches – 30 May 2023
Crown Resorts and the Australian Transaction Reports and Analysis Centre (AUSTRAC) have agreed to a $450 million penalty over historical breaches of Australia’s anti-money laundering laws at its Melbourne and Perth casinos.
Crown’s CEO says the company is committed to rectifying its past “failingsThe $450 million penalty will require the final approval of the Federal Court in July.
Psychic scams are swindling Australians out of thousands of dollars, but no one is going after the culprits – 30 May 2023
According to ScamWatch, the amount extorted from Australians via psychic scams more than doubled between 2020 and 2022, jumping from $230,273 to $555,240. A psychic scam doesn’t involve a psychic making an inaccurate prediction. The psychic scam follows a specific pattern: and it all starts with a “curse”. They groom the vulnerable person to suspend their critical thinking at a low point in their lives and get them hooked on the scam.
Elizabeth Holmes enters Texas prison to begin 11-year sentence for notorious Theranos blood-testing hoax – 31 May 2023
Elizabeth Holmes was sentenced to 135 months prison for defrauding investors in her blood testing startup. Holmes admitted making mistakes at Theranos, but denied committing crimes during the trial. She will serve the sentence at a minimum security prison in Texas.
https://www.abc.net.au/news/2023-05-31/theranos-elizabeth-holmes-begins-prison-sentence/102413766
Estimates reveal 435 Chinese-made surveillance devices found at defence sites – 31 May 2023
Hundreds of Chinese-made surveillance cameras have been found at defence sites across Australia, well above the initial estimate of just one. Under Chinese national security law the Chinese Communist Party could request any of the surveillance material to be handed over. Government Defence is now working through a process of completely removing the devices from all sites by June 30.
Amazon to pay $38 million settlement over allegations of hoarding children’s data – 1 June 2023
Amazon has agreed to pay a $38 million civil penalty to settle the US Federal Trade Commission’s allegations it violated a child privacy law and deceived parents, by keeping for years children’s voice and location data, recorded by its popular Alexa, voice assistant. Amazon also has to overhaul its data deletion practices and impose stricter, more transparent privacy measures.
Mining giant BHP admits underpaying almost 30,000 Australian workers – 1 June 2023
Mining giant BHP has admitted it has underpaid almost 30,000 workers, dating back to 2010, and it will cost more than $400 million to make amends. BHP said a review suggested rostered employees in Australia had their leave incorrectly deducted on public holidays since 2010. It says it’s working to rectify the issue as quickly as possible for 28,500 workers.
https://www.abc.net.au/news/2023-06-01/bhp-wages-underpaid-28500-workers/102419890
Trust fund scam swindles agent and conveyancers ou t of $100k+ – 1 June 2023
Property professionals are being advised to exercise extra vigilance following a bank impersonation scam that collectively duped three Western Australian real estate and settlement agents out of over $100,000. The victims received a phone call from scammers posing as an authorised person from NAB and were told that a recent payment they had made from their trust account, had been blocked as it appeared suspicious or hadn’t gone through and the account needed to be reset. Article emphasises the importance of never disclosing personal details or access codes over the phone, even if the caller appears legitimate.
SA man charged for scamming $700k from elderly victims with non-existent scheme – 2 June 2023
An 80 year old South Australian financial planner has been arrested for deceiving six elderly people out of $700,000 with investment schemes that did not exist.
Investigation & Fraud News – Week ending 28 May 2023
11 stories this week:
Intelligence firm warns of scams involving AI “deep fake” voices – 24 May 2023
AI has made it easier for scammers to fool consumers and employees, with “deep fake” voice technology allowing criminals to impersonate companies, government agencies, and even family members. The outlook for voice cloning and its use in particular in banking fraud, disinformation, social engineering, copyright infringement, and more is bleak if we do not immediately adopt an industry-wide approach to mitigating associated risks.
The importance of being prepared for an Environmental, Social and Governance (ESG) investigation – 24 May 2023
Environmental, Social and Governance (ESG) policy remains an evolving field peppered with numerous issues, complexities and nuances. The article discusses the growing prospect of being subjected to an ESG investigation and the challenges it brings for organisations.
Cyber criminals are exploiting out-of-office emails to scam small businesses – 24 May 2023
Cybercriminals are using increasingly sophisticated means to fool business owners and staff, funnelling significant sums into fraudulent bank accounts. The federal government has committed $23.4 million to the Cyber Wardens initiative. This article details simple steps to boost small business cyber security.
Money mules are involved in the majority of scam reports, ACCC says – 24 May 2023
Jenny lost almost $300,000 to an elaborate scam using 11 ‘money mules’ who were involved in shifting her money offshore. Often recruited through job ads, money mules have become a big part of the scamming economy as they are out of the reach of law enforcement. The Australian Competition and Consumer Commission’s Catriona Lowe says they are a huge part of the scamming economy, which fleeced people of $3.1 billion last year.
How global organisations are combatting identity fraud – 24 May 2023
According to the Australian Institute of Criminology, the annual economic impact of identity crime is upwards of $3.1 billion. The need for digital identity verification tools has been growing for years, particularly in Australia with the uptake of digital services like telehealth appointments, online learning and applying for government benefits online, but major companies need to catch up by improving their digital checks and balances.
Melissa Caddick is dead, coroner confirms, but nature of her demise remains unknown – 25 May 2023
The NSW Coroner has found alleged Sydney fraudster Melissa Caddick is dead but says it’s not possible to draw conclusions about how or where she died. ASIC had been investigating an alleged Ponzi scheme run by Ms Caddick and an inquest into her suspected death heard investors lost between $20 and $30 million. At the time her home was raided, authorities suspected she had stolen in excess of $23 million.
https://www.abc.net.au/news/2023-05-25/melissa-caddick-nsw-coroner-rules-fraudster-is-dead/102390386
Sydney entrepreneur Andrew Spira denied bail in NT court after allegedly attempting to obtain illegal passport to flee the country – 24 May 2023
Andrew Spira, a “wealthy” entrepreneur who breached his interstate bail conditions to travel to the Northern Territory and allegedly attempted to fraudulently obtain a new passport to flee the country has been denied bail. He is charged by NT Police with a range of offences including using and possessing false documents, possessing an unlicensed firearm, drug possession and obtaining property by deception.
https://www.abc.net.au/news/2023-05-24/nt-andrew-spira-denied-bail/102387550
Convicted killer Alex Murdaugh indicted over allegations he stole money from family of dead housekeeper – 25 May 2023
Richard “Alex” Murdaugh, already convicted of murdering his wife and son, has been indicted on 22 counts of financial fraud, including charges involving the death of his housekeeper. It is alleged that the personal injury lawyer defrauded more than $5.2 million from an insurance settlement meant for the family of his housekeeper, Gloria Satterfield. The case attracted huge interest from around the world, and featured in a Netflix documentary.
https://www.abc.net.au/news/2023-05-25/alex-murdaugh-indicted-on-fraud-after-murder/102390264
PwC agrees to ‘stand down’ staff who knew about Treasury tax leak from government contracts – 25 May 2023
PwC has agreed to an order to “stand down” any staff who knew about Treasury tax leaks from working on any existing or future government contracts. The Government Finance deppartment asked suppliers to agree to a clause that would allow contracts to be terminated over poor handling of a breach. Police are continuing to investigate.
https://www.abc.net.au/news/2023-05-25/pwc-ordered-to-stand-down-staff-over-tax-leak/102392134
NSW Crime Commission to review Alex Greenwich allegations of ‘constrains’ on money laundering report – 26 May 2023
The NSW Crime Commission (NCC) has ordered staff to review allegations that its landmark report into money laundering through poker machines may have been “compromised”. Independent MP Alex Greenwich has now raised concerns about the accuracy of the data on money laundering, saying he had been told “the full extent” may not be reflected in the report. Among the allegations were that some pubs and clubs had been “tipped off” about upcoming compliance checks.
Investigation & Fraud News – Week ending 18 May 2023
11 stories this week:
Serial fraudster jailed for $8.7m luxury car scam using stolen IDs – 12 May 2023
A serial fraudster has been jailed for five-and-a-half years after he ran over a police officer to avoid capture, for stealing more than $8.7m in a swindle involving luxury cars and stolen identities. Ryan O’Hara, also known as Christian Nassar, pleaded guilty to 19 fraud charges related to his staggering scam. He made 90 successful applications for fraudulent financial loans totalling more than $8.7m between 2015 and 2019 and assumed the identities of 147 “unknowing people in the community” to apply for the large motor vehicle loans.
Glamorous daughter of Sydney developer fronts court over alleged $150m fraud – 15 May 2023
Ashlyn Nassif, the lawyer daughter of embattled property developer Jean Nassif has fronted court as she faces allegations she used fraudulent contracts to get a $150m loan. She was arrested earlier this year following a police raid on four properties, including the offices of her law firm EA Legal, and charged with dishonestly obtaining financial advantage by deception and publishing false or misleading material. The 27-year-old is accused of submitting fake contracts to meet a $10.5m pre-sale condition for the Sky View apartments in Castle Hill in Sydney’s northwest.
Australian cybercrime expert Ken Gamble lands billion-dollar Malasyia bust – 15 May 2023
NSW-based investigator Ken Gamble stated that after three years, investigators had finally cracked the elaborate boiler room scam, which used high-intensity sales tactics through call centres to persuade investors to buy shares in fake companies.
National anti-scams centre set to open in July, as Australians lose billions to fraudsters – 15 May 2023
A national anti-scams centre is being established to help combat scams and online fraud, after Australians reported losing billions of dollars to fraudsters last year. The new initiative will change the way scams are dealt with by: facilitating faster responses to scam reports, establishing “fusion shells” – described as a “hit squad” of experts from industry and law enforcement to act on scam trends; and introducing a “white list” of approved phone numbers, with SMS messages will be blocked unless they’re from an authorised agency.
https://www.abc.net.au/news/2023-05-15/details-of-new-scam-centre-announced-by-government/102345782
WA department at Centre of ‘record public sector fraud’ rocked by new claims – 16 May 2023
WA’s Department of Communities is at the centre of controversy, following an investigation into alleged corruption between contractors and employees at the state body. Two men are facing corruption charges after a WA government employee allegedly awarded a contractor millions of dollars of work in exchange for cash and a luxury car.
Australian banks announce new scam-busting tool to safeguard your money – 17 May 2023
The new Fraud Reporting Exchange (FRX) platform is set to be a total game changer for combating scams and protecting customer finances. The Australian Banking Association (ABA) announced the new platform which will allow the “reporting of scam payments in close to real-time, boosting the likelihood that funds can be frozen and returned to customers.”
Westpac bans transfers to world’s largest crypto exchange Binance – 18 May 2023
Westpac, one of Australia’s ‘Big Four’ banks, is launching its first trial of scam protection measures designed to combat fraudulent activities related to cryptocurrencies. The protection measures aim to mitigate losses from scams and reduce potential risks. It has banned customers from transferring funds to the world’s largest cryptocurrency exchange Binance, in a move aimed at reducing losses from scams.
Bitumen ‘con men’ targeting regional Australia leaving victims with shoddy work, big bills – 18 May 2023
Rural and regional residents are being warned of a bitumen driveway resurfacing scam whereby con men believed to be travelling across Australia are promising cheap concrete and bitumen work and delivering a poor and incomplete product.
https://www.abc.net.au/news/2023-05-19/bitumen-con-men-targeting-regional-australia/102362840
Investigation & Fraud News – Week ending 12 May 2023
11 stories this week:
How ChatGPT Could Worsen the ‘Scam Pandemic’ – 8 May 2023
Unfortunately, scammers have seen the potential of ChatGPT and have began exploring ways to use the AI chatbot to generate malware. ChatGPT’s remarkable capacity to mimic the language style of specific organisations and institutions enable scammers to create highly detailed and realistic copies, which they could use to create scam messages or fake websites. This makes generating scam messages a low-effort, high-reward endeavor, leading to even more challenging detection and discernment of phishing and impersonation scams.
Feds get serious about scams and investment fraud – 9 May 2023
Amid ballooning digital fraud, $87 million is to be spent on a new National Anti-Scam Centre, take-down functions for investor scams and an SMS sender registry to stop fraudsters from acting as government agencies. The National Anti-Scam Centre will be based within the Australian Competition and Consumer Commission (ACCC). It will aim to improve data sharing on scams across government and the private sector, establishing “public-private sector fusion cells” to target specific scam issues.
Man who committed $105 million tax fraud cannot be sentenced due to unpaid legal fees – 9 May 2023
Adam Cranston, who siphoned $105 million from taxpayers in one of the most serious tax frauds ever prosecuted in Australia, cannot be sentenced until commonwealth and state authorities decide who will pay about $50,000 in legal fees. He was the architect of the Plutus Payroll conspiracy, which funneled money away from the tax office for years while his father, cleared of wrongdoing in 2019, was the deputy commissioner.
Police allege ‘mum-and-dad’ investors targeted by Sydney businessman in alleged $24 million fraud – 10 May 2023
Vincenzo Vocisano, a Sydney businessman has been charged with allegedly defrauding “mum-and-dad” investors of more than $24 million, which he allegedly spent on gambling platforms. Mr Vocisano was charged with one count of dishonestly oobtaining a financial advantage by deception and is yet to enter a plea.
Power Ledger-linked crypto exchange files for bankruptcy – 10 May 2023
Bittrex, a cryptocurrency trading platform that generated $ 1.9 billion revenue, filed for bankruptcy on Monday after being sued by the US Securities and Exchange Commission (SEC) for allegedly operating as an illegal stock exchange. In a lawsuit that triggered the bankruptcy filing, the SEC cited Bittrex’s decision to allow customers to trade in crypto tokens issued by Perth-based Power Ledger as evidence that it deliberately avoided regulation.
Growing Trends in Whistleblowing Compliance Landscape – 10 May 2023
Great article outlining that whistleblower protection programs have evolved rapidly in the last five to six years and this trend is likely to continue as more countries propose to introduce regulatory requirements, actively pursue enforcement and also, enhance the rewards offered to whistleblowers. Disscusion on use of AI and how company leadership sets the tone for how any compliance program is received by its employees.
https://www.lexology.com/library/detail.aspx?g=cdf0e0b0-5564-4597-bec2-ce46438a07fa
Banks say ‘consent fatigue’ among risks in privacy reform – 10 May 2023
The federal government’s privacy law reforms will create “consent fatigue” as customers are bombarded with messages from lenders seeking permission for things such as making basic payments, while also making it harder to develop new products and tackle fraud, the banks say. The new laws will create a historic shift in privacy rules in favour of citizens following high-profile misuse of data by big tech platforms, various data breaches and concerns about data collection practices from business and government.
Briton pleads guilty in US to 2020 Twitter hack – 10 May 2023
Joseph James O’Connor, a British national extradited to the US last month has pleaded guilty in New York to a role in one of the biggest hacks in social media history. The July 2020 Twitter hack affected over 130 accounts including those of Barack Obama and Joe Biden.
https://au.news.yahoo.com/briton-pleads-guilty-us-2020-230621138.html
Republican George Santos decries federal charges as ‘witch hunt’ amid claims of theft, fraud – 11 May 2023
US Republican George Santos, infamous for fabricating his life story, has pleaded not guilty to charges he duped donors, stole from his campaign and lied to Congress about being a millionaire, all while cheating to collect unemployment benefits he didn’t deserve. He said he’s been cooperating with the investigation and vowed to fight the prosecution, which he labelled a “witch hunt”.
White-Collar Crime: Definition, Categories, Evolution and Notable Cases – 11 May 2023
This article endeavours to define what is regarded as white collar crime and explores a portion of the multitude of white-collar crimes through the ages including those by government. It will also discuss the aspect of how it is no longer regarded as a crime without violence and will list examples of historical cases, after first discussing the origin of this criminal act and other colours of collared crime.
Damien Luscombe Charged For Allegedly Ripping Off Music Clients – 12 May 2023
Damien Luscombe, a music industry accountant has been charged with a range of offences including obtaining financial advantage by deception and using false documents. In total, he has been charged with 22 offences relating to the alleged embezzlement of $2.2 million. His high profile clients include Amy Shark, Peking Duck and Julia Stone.
https://themusicnetwork.com/damien-luscombe-arrest/
