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Investigation & Fraud News – Week ending 8 July 2023
11 stories this week:
CBA jostles with AI-generated Matt Comyn scam – 15 June 2023
Scammers are using fraudulent, AI-generated videos of Mr Comyn (CBA CEO), and others, to try and convince people to invest. The videos – posted by a variety of personal accounts direct people to a website that promotes a “Quantum AI” tool and includes a fake interview with Mr Comyn who is promoting a scam investment scheme.
FTX founder Sam Bankman-Fried likely to face two criminal trials – 15 June 2023
FTX founder Sam Bankman-Fried may face new charges which include a claim he directed the payment of $US40 million ($58 million) in bribes to a Chinese official or Chinese officials to free $US1 billion in cryptocurrency that was frozen in early 2021.
Cameron Gidley-Baird jailed for $1.8m fraud targeting farmers with business scam – 21 June 2023
A man who defrauded eight New South Wales farmers of $1.8 million has been sentenced to a maximum of six-and-a-half years in jail. Gidley-Baird, had registered numerous businesses and opened several bank accounts as part of an orchestrated scam. The court heard he promised false business ventures that never materialised, instead pocketing the money.
Luxury cars seized and two men charged over alleged $5.5m Sydney cryptocurrency scam – 22 June 2023
Two men have been charged and several luxury sports cars have been seized in Sydney, after two companies were allegedly defrauded more than $5.5 million in a cryptocurrency scam. Police say Mr Sa Alves used a cryptocurrency scam from 2021 to defraud the companies, while the older man allegedly authorised the funds and got rid of the Ferrari to avoid police detection. Mr Sa Alves has been charged with three counts each of dishonestly obtaining financial advantage by deception, and knowingly dealing with proceeds of crime with intent to conceal.
Perth Mint faces more scrutiny as federal parliamentary inquiry launched after gold doping saga – 22 June 2023
AUSTRAC has been investigating the Perth mint since late last year over its level of compliance with anti-money laundering and counter-terrorism financing laws. It follows concerns over regulatory compliance and gold sales to China with lower purity.
How victims were scammed out of hundreds of thousands of dollars by Bank of America employee – 23 June 2023
Rajesh Ghedia was sentenced to six years and nine months in prison last year, for pretending to be a Bank of America financial adviser as part of the AU$3.3 million scam. He convinced people to invest in non-existent financial products but pocketed the money himself. Australian, Wayne Johncock lost more than $A337,000 in Ghedia’s scams, which had a major impact on his mental health.
Ex-Audi boss convicted of fraud after pleading guilty in Volkswagen diesel emissions scandal – 27 June 2023
A German court has found ex-Audi boss Rupert Stadler guilty of fraud in connection with the Volkswagen diesel emissions scandal. Making him the highest-ranking executive, convicted over cars that cheated on emissions tests, with the help of illegal software. The scandal cost the company more than $44.7 billion in worldwide fines and settlements.
The tech flaw that lets hackers control surveillance cameras – 27 June 2023
Chinese-made surveillance cameras are in British offices, high streets and even government buildings. This article shows how Panorama has investigated security flaws involving the two top brands. They demonstrate how easy is it to hack them and what it means for our security.
https://au.news.yahoo.com/tech-flaw-lets-hackers-control-110030136.html
ICAC ‘mismanaged’ inquiries but probe into former Renewal SA boss ‘justified’, review finds – 27 June 2023
A review of how ICAC handled an investigation into the John Hanlon’s, the former Renewal SA boss’s travels has been tabled in parliament. It was critical of the work undertaken by the anti-corruption watchdog in Germany and found the failure to follow processes amounted to “an infringement of Germany’s sovereignty”.
Beware of scammers posing as banks: WA real estate agent loses $300,000 – 28 June 2023
Criminals posing to be a bank have swindled nearly $330,000 from a Western Australian real estate agent’s trust account via a remote access scam. Article outlines 5 ways to identify a bank impersonation scam.
https://www.savings.com.au/news/scammers-posing-as-bank-swindle-300k
WA man arrested as part of international illegal marketplace takedown – 30 June 2023
A WA man is expected to face Perth Magistrates Court for cybercrime offences after the takedown of an illegal online marketplace that allowed users to purchase stolen personal information for alleged criminal offending. The marketplace, Genesis Market, offered access to more than 1.5 million compromised computers – each containing information for dozens of accounts. The site was shut down in April 2023 and 10 people across Australia were arrested as part of the coordinated international effort.
Federal government launches new investment scam taskforce with help from ASIC, ACCC – 3 July 2023
Australians have been losing more and more money to scams each year, with total losses exceeding an estimated $3 billion last year. The National Anti-Scams Centre brings together experts from public agencies and private industries to disrupt scammers. Its first operation will tackle investment scams, which cost Australians over $1 billion a year. The operation will last six months, with the centre publicly reporting outcomes.
Former prison officer guilty of $94,000 disability payment scam sentenced to home detention – 3 July 2023
Kristin Danger, a former South Australian prison officer who falsely claimed more than $90,000 in disability payments has been sentenced to two years of home detention. A judge said Danger faced a “heightened risk of harm” if sent to prison.
Corrupt lawyer Dev Menon jailed for 14 years over Plutus Payroll tax fraud – 4 July 2023
Dev Menon, a lawyer who helped carry out one of Australia’s largest tax frauds has been sentenced to a maximum of 14 years in prison. The Plutus Payroll scam ran for about three years, up until 2017. The fraud resulted in the Australian Tax Office (ATO) losing out on more than $105 million before the scheme was shut down by the Australian Federal Police (AFP) in 2017.
ChatGPT and AI boom threatens bank fraud storm – 6 July 2023
Jeremy Asher, a fraud expert and lawyer at Setfords, believes AI can be used by fraudsters to “disguise as genuine people” so they can set up bank accounts in victims’ names. ChatGPT was launched in late November 2022 and with chatbots being released every month, Asher thinks AI could be a catalyst.
Investigation & Fraud News – Week ending 14 June 2023
11 stories this week:
Police looking for former bank teller accused of stealing $121,000 – 13 June 2023
Police are looking for Shepparton man Kuol Mawien Kuol. The 25-year-old is wanted on warrant for failure to appear in court in relation to fraud and drug matters. The fraud matters relate to allegations he stole $121,000 from bank accounts while he worked as a bank teller in Shepparton and Kyabram. https://www.sheppnews.com.au/news/police-looking-for-former-bank-teller-accused-of-stealing-121000/
Former Coles executive admits $1.9 million fraud – 14 June 2023
Aaron Baslangic, a former Coles executive has admitted stealing $1.9 million from the national supermarket giant. As a finance executive at Coles Online, Baslangic could authorise payments up to $75,000 and in early 2019 orchestrated 14 illegal payments. He pleaded guilty to two charges of obtaining property by deception, financial advantage by deception and making a false document.
https://www.sheppnews.com.au/national/former-coles-executive-admits-1-9-million-fraud/
Police commences investigation into allegations of fraud – 14 June 2023
Commissioner of Police David Manning said the Royal Papua New Guinea Constabulary is currently investigating and prosecuting a number of transnational economic crimes allegations involving Papua New Guineans and foreigners. Police have also commenced criminal investigation last month into the allegations of fraud and official corruption jointly reported on various local and international media platforms by ABC News and the Organized Crime and Corruption Reporting Project.
https://www.postcourier.com.pg/police-commences-investigation-into-allegations-of-fraud/
Australia’s Central Bank Owes Underpaid Workers Over $770,000 – 14 June 2023
Australia’s central bank will pay out just over A$1 million in back pay after an internal review found the bank had systematically underpaid more than a thousand current and former employees. Most of the money owed came from leave entitlements that should have been paid out when staff left the bank.
Update for developer’s daughter accused of $150m bank scam – 14 June 2023
Ashlyn Nassif has been charged with dishonestly obtaining a financial advantage by deception and publishing false or misleading material, after she allegedly submitted fake contracts to obtain a $150m bank loan. Ashlyn is accused of falsifying documents to meet a $10.5m pre-sale condition for the Sky View apartments in Castle Hill in Sydney’s northwest.
https://www.perthnow.com.au/news/update-for-developers-daughter-accused-of-150m-bank-scam-c-10977761
Worker allegedly defrauded wedding venue employer of $15K – 15 June 2023
A Tasmanian man has pleaded not guilty to defrauding his wedding venue employer of more than $15,000 over a period of more than two years. He is pleading not guilty to 94 charges of computer-related fraud and dishonestly.
Access to Digital version of herald sun required to read article.
European Union one step closer to passing world’s first artificial intelligence rules – 15 June 2023
The EU Commission’s proposed AI Act will regulate the use of artificial intelligence. The EU Commission’s proposed landmark laws, are designed to set a global standard for protecting people from the technology, following warnings from experts that AI presents an “extinction” risk similar to that of pandemics and nuclear war. The rules include a ban on AI for real-time biometric surveillance, emotion recognition, and also predictive policing.
‘Blow your brains out’: Scammer’s chilling threat after stealing $130k – 15 June 2023
Paul Trefry, a businessman has shared the chilling moment a scammer taunted and threatened him over the phone after stealing $130,000. Once Paul realised what was happening, he decided to record the call and unbelievably, the two men involved confessed to stealing his $130,000 and told him how they planned spending his money. The scammers also claimed to have purchased Paul’s personal details for just $20 and then rang back and told Paul they would ‘smash his head in’ and shoot him as well.
NAB issues urgent warning over phishing scam targeting customers with fake website – 15 June 2023
The Australian Competition and Consumer Commission (ACCC) says Australians have lost a record $3.1b in 2022, with total losses increasing by 80% from 2021. NAB has issued a warning to customers over criminals tricking users into losing control of their phones, computers and tablets. The scam page then lures customers into downloading a ‘”Business Portal” through a link, or a live chat option, which gives criminals remote software access and allows them to take control of the devices.
Whistleblowing amendments an important first-step – 15 June 2023
Initial amendments to Australia’s federal public sector whistleblowing law, the Public Interest Disclosure Act, are a welcome step towards much-needed comprehensive reform. Attorney-General Mark Dreyfus KC has committed to a second, wider phase of PID Act reform later this year. The government has also agreed to consult on the establishment of a whistleblower protection authority, with a discussion paper expected in the coming months.
https://www.hrlc.org.au/news/2023/6/14/pid-act-first-steps
‘Invisible robbers’ stealing millions in phone porting scam labelled as ‘terrifying’ – 16 June 2023
Business owner Claire Harrison fell victim to mobile porting fraud- where scammers gain control of a person’s identity and bank account by having their mobile number transferred to another device.
Investigation & Fraud News – Week ending 12 June 2023
11 stories this week:
Ballarat real estate agent Richard Hayden admits stealing from clients to give dying wife good end to life – 5 June 2023
A former Ballarat real estate agent has learnt he will likely received a prison sentence, after admitting to embezzlement of business money to fund a good end to life for his wife who was dying of cancer. Hayden’s withdrawal of almost $770,000 from business to personal accounts over 98 transactions in 2018 and 2019 left insufficient funds for the company to pay clients’ deposits for the sale of their homes.
What is the PwC tax scandal? Who is Peter-John Collins? Who knew about it? Why does it matter? – 5 June 2023
Consulting firm PwC is still under fire over revelations some of its senior partners misused confidential Australian government information to help big multinational companies avoid paying more tax. This article explains exactly what happened, who was involved, how it all started and next steps.
Stephanie Carroll sentenced in Geelong court for WorkSafe benefits fraud – 5 June 2023
Stephanie Carroll, a Victorian woman has been ordered to repay more than $60,000 after fraudulently receiving compensation payments for a work-related injury, despite working at a fitness studio. Carroll was sentenced to do unpaid community work and also pay restitution and costs.
The most powerful man in crypto is facing charges. Who is Binance founder Changpeng Zhao? – 6 June 2023
Binance founder Changpeng Zhao and his exchange have been charged with 13 offences and accused of operating a “web of deception”. It is alleged Binance has grown to a colossal size by systematically evading US laws. Binance has vowed to ‘defend the platform vigorously’.
https://www.abc.net.au/news/2023-06-06/binance-billionaire-changpeng-zhao-web-of-deception/102447196
Investigation into BHP’s underpayment of 30,000 workers launched by Fair Work Ombudsman – 6 June 2023
Australia’s Fair Work Ombudsman is investigating whether BHP’s “disappointing” underpayment of 30,000 employees was due to neglect. BHP has estimated it will cost around $400 million to pay back its employees. The ombudsman has also commenced legal action against the Commonwealth Bank and Commsec, alleging underpayments of more than $16 million to around 7,000 employees and taken legal action against Super Retail Group, whose retailers include Supercheap Auto, Rebel and BCF, and signed undertakings with Qantas, Westpac and David Jones.
Angus Dick convicted over payments claimed for bad back while working as escort and cleaner – 7 June 2023
Angus Dick has been fined for faking a bad back and fraudulently claiming thousands of dollars while working as escort and a cleaner. Dick did not declare any of the work activity and continued to claim he had not worked during the time he received compensation payment. He was convicted and ordered to serve 200 hours of unpaid work.
South Korean inquiry to investigate 237 more foreign adoptions suspected to be fraudulent – 8 June 2023
South Korea’s Truth and Reconciliation Commission says it will investigate 237 more cases of South Korean adoptees who suspect their family origins were manipulated to facilitate their adoptions in Europe and the United States. South Korea was ruled by dictatorships at the height of the practice, which was seen as a way to deepen ties with the West.
Naracoorte small business warns others to guard passwords after email hack attack – 8 June 2023
A small business owner in South Australia’s south-east is warning others to manage their passwords better after his email account was hacked and a customer almost handed over more than $100,000 to a scammer.
Arrest warrant granted for Sydney developer Jean Nassif over alleged fraud offences – 9 June 2023
Jean Nassif is wanted for alleged fraud offences, however NSW Police don’t know where the Sydney developer is. A court has also heard his daughter who is on bail, has allegedly made and submitted false or misleading sales contracts in order to access a $150 million loan for the construction of three buildings in Toplace’s Skyview development at Castle Hill.
Perth financial adviser Mark Sebo stands trial after allegedly stealing $1 million from clients – 9 June 2023
Mark Raymond, a Perth financial adviser is on trial accused of stealing more than $1 million from the superannuation accounts of eight clients and spending it on online gambling. Some of the clients had contacted Mr Sebo when they noticed the transactions and the court heard he had replied with text messages urging them to make a complaint to the Australian Securities and investments commission (ASIC). Mr Sebo is representing himself at the trial and he denies any wrongdoing.
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.
