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Investigation & Fraud News – Week ending 6 May 2023
12 stories this week:
Employee Fraud and unexpected tax implications – 28 April 2023
Employee Fraud can have far-reaching negative consequences for victim businesses, including on finances, reputation and staff morale. What many clients don’t often consider is the taxation implications. The article covers common questions relating to Employee Fraud and discusses the serious tax implications these incidents can have on your business.
PNG climate change officials accused of skimming $2 million in public funds – 28 April 2023
Senior staff at the government body responsible for carrying out Papua New Guinea’s climate change response, are facing major criminal proceedings, after the alleged misappropriation of more than $2 million. Finance manager Ivan Aipi faces 35 charges, including illegally executing cheques for the benefit of his boss and associates.
Helping to win the battle to curb SMS and voice fraud – 2 May 2023
Australians lost over $2 Billion to scams in 2021, according to the ACCC. In 50% of those cases nationwide, the initial contact with the victim was made by phone, with text messages as the second most prevalent contact method (23%). This article looks at what Service Provider industries and businesses are doing to combat the scourge of phone and text-based scams and slow down or stop the fraud activity before it can start.
https://itbrief.com.au/story/helping-to-win-the-battle-to-curb-sms-and-voice-fraud
Man charged after allegedly used stolen identities to defraud $47K in Covid grants: police – 2 May 2023
A man will face court after allegedly fraudulently claiming more than $47k worth of Covid-19 grants by using stolen identities. He was charged with more than 118 charges including 70 counts of possessing identify information to commit an indictable offence.
Fake ‘Australian Bankers’ call centre scam busted in India – 3 May 2023
Mumbai Police recently said that they have busted a fake call centre, arresting around 50 people. Police Authorities commenced a forensic examination of the computers and revealed that young employees were trained to receive calls from unsuspecting bank customers from Australia. Employees allegedly extracted sensitive personal details and security information.
https://www.theaustraliatoday.com.au/fake-australian-bankers-call-centre-scam-busted-in-india/
Disturbing dashcam shows woman jump in front of car in suspected ‘insurance fraud’ incident – 3 May 2023
Disturbing dashcam footage has captured the moment a woman appears to leap in front of a car south of Brisbane before the driver speeds away, suspecting an “insurance fraud incident” – or worse. Police attended the location but were unable to locate those involved. No formal complaint has been made, however investigations are ongoing into the circumstances surrounding the incident.
Hundreds of charges dropped over WA’s biggest ever public fraud – 5 May 2023
Public prosecutors have dropped 542 charges against a Perth physiotherapist, which had followed one of the state’s biggest ever public corruption scandals.
Jacob Anthonisz, 45, had been charged over allegations he helped former Department of Communities bureaucrat Paul Whyte steal $27 million in taxpayer money. It was the Department of Public Prosecutions’ decision to discontinue the case as ‘it was not in the public interest to continue’.
IOUpay’s administration disputed after $19m fraud allegations – 5 May 2023
ASX-listed BNPL company IOUpay has entered voluntary administration after the discovery of an alleged $19 million fraud scandal involving former CFO Kenneth Kuan and Western Australian mining businessman Anthony Dunlop. Dunlop is also facing allegations made by ASIC that he used his position as director of Capital Mining, to make hundreds of thousands of dollars in dishonest payments to both himself and others.
Facebook and WhatsApp owner urged by UK bank to act on fraud as scams soar – 5 May 2023
Meta has been urged to take action to protect customers from fraud, after US bank TSB said scams via the social media company’s platforms Facebook, WhatsApp and Instagram have soared. Research shows these platforms account for 80% of cases within three largest fraud categories: impersonation, purchase and investment.
https://www.theguardian.com/uk-news/2023/may/05/facebook-whatsapp-instagram-fraud-scams-tsb-meta
Patrick Willmott jailed over his role in $105 million Plutus Payroll tax fraud scheme – 5 May 2023
A man who pocketed nearly half a million dollars through the Plutus Payroll tax fraud has been sentenced to a maximum of nine years in prison. More than $31 million that should have gone to the tax office was instead diverted to the co-conspirators, and his own direct financial benefit was $498,272.Five people have been found guilty over the fraud which cost the ATO $105 million
Investigation & Fraud News – Week ending 28 April 2023
12 stories this week:
Scammers steal millions from Australians each year, but victims have little recourse – 21 April 2023
A woman who lost thousands to a scam said NAB treated her poorly, while the other bank blocked the scammers. ASIC says, the banking industry has no consistent approach for helping scam victims. Advocates want to make banks liable for scam losses, but the industry has rejected this.
Alexander Maconochie Centre detainees under investigation over alleged fraudulent transactions – 21 April 2023
Police are investigating allegations detainees at Canberra’s jail were able to defraud a man of thousands of dollars while incarcerated. ACT Corrective Services told the victim, it’s a “known issue” within Canberra’s jail.
https://www.abc.net.au/news/2023-04-21/canberra-jail-detainees-invetigated-over-fraud/102251854
Heidi Barrat avoids jail after pleading guilty to mouse plague relief rebate fraud – 24 April 2023
A woman who fraudulently claimed $60,000 in mouse plague relief funds to fuel her gambling addiction has avoided jail time. She applied for the fund 120 times, using different bank accounts and email addresses for each claim. She has been sentenced to a two-year intensive corrections order, 300 hours of community service and must repay the funds.
https://www.abc.net.au/news/2023-04-24/heidi-barrat-mouse-plague-fraud-sentencing/102259914
Unsuspecting unis caught up in foreign research ‘fraud’ – 26 April 2023
Identity theft, plagiarism, fake journals, pseudo editors: the academic publishing world is rife with misbehavior. An activist in the research misconduct and fraud space for many years says that misbehaviour in academic publishing was being driven by predatory publishers, that made money from academics paying to have their paper included in journals, and the fact that promotions are usually based on, among other things, the number of papers an academic has had published.
IOUpay goes broke after $19m suspected Malaysian fraud – 26 April 2023
Payments minnow IOUpay has been placed into administration after a $19 million suspected fraud involving a Malaysian executive and a persistent legal battle drained its finances. Former chief financial officer Kenneth Kuan Choon Hsuing allegedly used the IOUpay treasury to make about $7 million of loans to businesses connected to himself, his wife and other former employees.
https://www.afr.com/technology/ioupay-goes-broke-after-19m-suspected-malaysian-fraud-20230426-p5d3cr
Gold Coast couple never legally owned home they purchased at auction, court ruling finds – 27 April 2023
In March 2018, a couple purchased a house at a mortgagee auction for $1.265 million and have been living in it. What they didn’t know when they bought the property, was that the owner had alleged the house had been unlawfully mortgaged as security for a loan by a relative, who later defaulted. A handwriting expert gave evidence during the trial that the owners signature had been forged on the loan documents. The court found the couple did not have a legal interest in the home, because they were not able to register the title but were entitled to recover $2,751,666.32 from the mortgagees who sold the house for breach of contract.
Crown Casino’s bank cheque practice likely ‘resulted in criminal infiltration’, gambling watchdog finds – 27 April 2023
Crown Casino has been fined $30 million by Victoria’s gambling watchdog for allowing punters to cash bank cheques made out to themselves, exacerbating gambling harm and likely aiding “criminal infiltration by money launderers”. The commission estimates more than $1.5 billion worth of cheques could have been involved in the practice between 1994 and 2021.
Steve Bannon associate sentenced to jail for fraud over Donald Trump’s border wall – 28 April 2023
US Air Force veteran Brian Kolfage, an ex-associate of Donald Trump’s former adviser Steve Bannon, has been sentenced to more than four years in prison, after admitting to conspiring to defraud donors to a campaign to build a wall along the US-Mexican border promised by the former president. The court heard Kolfage took more than $530,000 and spent it on boat payments, jewellery and cosmetic surgery.
New funding to crack down on NDIS fraud syndicates – 28 April 2023
Syndicates ripping off the National Disability Insurance Scheme will be targeted in a fraud crackdown. Some of the syndicates have targeted people with false information on how the NDIS operates, some using the promise of cash or vouchers. The 50 million in funding will ensure the agency has the capability to address fraud and non-compliance.
https://www.portnews.com.au/story/8173843/new-funding-to-crack-down-on-ndis-fraud-syndicates/
Investigation & Fraud News – Week ending 21 April 2023
12 stories this week:
Sydney man accused of accepting money for selling national security information – 14 April 2023
The AFP has been charged a NSW man with a foreign interference offence, after he allegedly accepted money in exchange for information about national security issues. It is alleged the Australian man compiled reports for the officers, and received payment for them. The 55-year-old businessman was arrested at his Bondi home and will appear in court.
https://www.abc.net.au/news/2023-04-14/afp-charge-man-with-foreign-interference/102226298
Catalytic converter thefts on the rise in Australia as rare metal values climb – 16 April 2023
There has been an increase in catalytic converter thefts in Australia. Thieves steal converters from a car’s exhaust system as they contain precious metals. Automotive industry groups want harsher penalties and better devices to stop the thefts.
ACC calls for united front as scammers steal over $3bn from Australians – 17 April 2023
The latest Targeting Scams report has revealed Australians lost a record $3.1 billion to scams in 2022, as government, law enforcement and the private sector look to improve collaborative efforts to support the community in the fight against scams. This is an 80 per cent increase on total losses recorded in 2021. Investment scams were the highest loss category ($1.5 billion), followed by remote access scams ($229 million) and payment redirection scams ($224 million).
New AFP headquarters to solve crime faster – 17 April 2023
Criminal investigations are becoming more complex as offenders take advantage of advances in technology. The AFP new Victorian headquarters will have the technology to stay ahead of criminals. The upgraded facilities, ensure the AFP is equipped to deploy at a moment’s notice to fight crime. They are backed by specialists, with the latest technology to process and analyse vast amounts of information, in real-time to identify patterns in criminal activity to ensure focussed disruption efforts.
https://www.afp.gov.au/news-media/media-releases/new-afp-headquarters-solve-crime-faster
Chatting with a hacker – 17 April 2023
The people behind the cyber attacks on Australia are highly organised criminal gangs, often based in Russia, with dozens of employees and even HR departments. Security researchers have linked the Medibank attack to REvil – one of the most successful cyber gangs of all time. With the help of researchers, a conversation was held with a hacker who says he’s worked for them.
Former Gold Coast property promoter jailed for scamming millions of dollars from pensioners – 17 April 2023
A former Gold Coast property promoter who scammed nearly $2 million from investors – most of them pensioners – has been jailed for more than eight years for fraud. Investors, including pensioners, were owed more than $9 million when Mr Silver’s companies went into liquidation.
Why accused criminals are challenging evidence in Sydney from one of the world’s biggest police stings – 18 April 2023
A landmark committal hearing for more than 50 people is being held in a Sydney court this week, with the group challenging the crucial source of evidence used by investigators involved in Operation Ironside, the AN0M app. It is alleged black-market phones installed with the so-called “Trojan horse” app were being passed around the underworld from 2018 in the belief they were off the police radar. The group of alleged bikies and criminals’ lawyers will explore whether that evidence was legally intercepted.
Save the Children report shines light on child rights violations in Australia’s youth justice system – 19 April 2023
Widespread child rights abuses in Australia’s youth justice system have detailed in a new ”Save the Children report”, which calls for an urgent nationwide overhaul to ensure better outcomes both for children and the community. The report reveals every Australian state and territory jurisdiction has a long way to go to uphold the rights of children across the areas of policing, bail and remand, diversion, court processes, sentencing practices, and detention. WA, QLD and the NT were the worst offenders when it comes to violating the rights of children in youth justice facilities.
AI called upon as cyber crime surpasses human capability – 19 April 2023
The cyber crime industry has already evolved beyond human capability and is increasingly seeing the adoption of artificial intelligence models to help stop bad threat actors from stealing sensitive data. Jonathan Jackson, BlackBerry’s Asia Pacific and Japan director of engineering, said the adoption of AI to fight cyber crime has been a long time coming.
‘It was instantaneous’: Chasing the crypto – 21 April 2023
It is the ultimate in cyber-chess. The crooks are constantly looking for a weakness to exploit while the cops are searching for a weakness in the criminal organisations’ defences. Cyber-cop Detective Sergeant Dion Achtypis lists some key facts. Australia has the second-highest concentration of dark net drug traffickers in the world, just behind the Netherlands. A staggering $50 billion of bitcoin changed hands in the past 24 hours. The World Economic Forum lists cyberattack and data theft in its top 10 risks, between extreme weather events and armed conflict. Sixty per cent of human communication is data-based.
Victoria to raise the age of criminal responsibility to 12, youth advocates push for 14 – 21 April 2023
Victoria will raise the age of criminal responsibility from 10 to 12, a decision advocates say ignores international best practices and will not improve child welfare. Advocates say the age needs to be raised further to 14 in order to protect children.
Optus lawsuit a ‘wake-up call’ to corporate Australia – 21 April 2023
A class action representing 100,000 people against Optus over a massive data breach has begun. While Optus has said no customers fell victim to financial loss or crime as a result of the hack, the law firm argues privacy is essentially priceless, and “time is money” after people were forced to take multiple steps to protect themselves after their information was stolen.
https://www.perthnow.com.au/news/crime/optus-sued-by-vulnerable-victims-of-data-breach-c-10410631
Investigation & Fraud News – Week ending 14 April 2023
9 stories this week:
Former Courgette chef James Mussillon jailed for money laundering and perjury – 11 April 2023
A renowned Canberra chef has been sent back to jail for laundering hundreds of thousands of dollars through his restaurant for an alleged drug dealer, as well as perjury and dishonesty charges. The court heard that Mussillon pretended that his co-accused was an employee at the restaurant, and laundered more than $350,000 disguised as payments for work, over a period of about five years. James Mussillon pleaded guilty to five charges, including one of perjury, last year.
Sydney family lose $200k life-savings in Suncorp spoofing scam – 11 April 2023
The Sydney family are “devastated” by the disappearance of almost $250,000 and can’t afford groceries and even face having to sell their home. Scammers are making it appear as if customers are receiving communication from the bank’s number. The victims believe Suncorp’s security process appeared “inadequate” and also claims the fraud department told him the hackers “were a step ahead” of the bank.
Next step in $36.5m investment scheme fraud case – 12 April 2023
Chris Marco allegedly defrauded nine investors out of $36.5m between July 2013 and October 2018 through an unregistered investment scheme, with at least one investor conned out of $10m. The charges stem from an ASIC investigation into Mr Marco and his company AMS Holdings (WA) Pty Ltd. He was also banned from carrying on a financial services business without an Australian Financial Services Licence.
Theranos’s Elizabeth Holmes loses bid to stay out of prison during appeal of sentence – 12 April 2023
A US district judge has denied Elizabeth Holmes’s bid to remain free on bail while her lawyers try to appeal her November prison sentence. The Theranos founder will have to surrender to authorities on April 27 to start the more than 11-year jail term. It comes 10 months after a jury found her guilty on four counts of fraud and conspiracy against the Theranos investors.
Homeowner wins fire dispute after insurer alleges fraud – 13 April 2023
A claimant whose property was severely damaged by fire will be compensated after successfully challenging an insurer’s decision to decline the claim over allegations of fraud. The Australian Financial Complaints Authority (AFCA) accepted that there was reasonable cause for the insurer to investigate the claim, but said there was insufficient evidence to show that the fire was deliberately lit. It required the insurer to accept the claim and award the homeowner $2000 for non-financial losses caused by the insurer’s handling of the claim as well as a $5000 contribution to his legal costs.
https://www.insurancenews.com.au/daily/homeowner-wins-fire-dispute-after-insurer-alleges-fraud
Australian court bans social media influencer ‘ASX Wolf’ from giving financial advice – 13 April 2023
Queensland justice Kylie Downes has issued an order forbidding Tyson Robert Scholz from hosting paid online groups in which messages are exchanged about share trades without an Australian Financial Services Licence.
Trump spends day in New York under questioning in state civil fraud case – 14 April 2023
Forrmer U.S. President Donald Trump returned to New York to answer questions under oath on Thursday in a $250 million business fraud lawsuit brought against him by the state attorney general. The lawsuit claims Trump, three of his adult children and others participated in a decade-long scheme to manipulate property values and his net worth to obtain favorable loans and tax and insurance benefits.
https://www.reuters.com/legal/trump-due-back-new-york-questioning-state-civil-fraud-case-2023-04-13/
How to stop internal fraud – 14 April 2023
Forensic accounting and corporate investigations firm Warfield and Associates investigated 102 cases in Australia between 2012 and 2022, revealing more than $350 million was stolen by internal fraud. The research from the report discovered that ‘lifestyle improvement’ was the main motivating factor in 44 cases (43%) while gambling addiction was responsible for another 39 cases (38%). Article aslo explains signs to watch out for and controls and checks to prevent internal fraud.
https://www.hcamag.com/au/specialisation/employment-law/how-to-stop-internal-fraud/442701
Government pledges to find ways to stop technology-facilitated abuse – 15 April 2023
The Australian Office of the eSafety commissioner says nearly all victims of domestic and family violence – more than 99 per cent of them – have experienced technology-facilitated abuse. The federal government has pledged to tackle the issue, announcing a grants program which aims to put a stop to that technology-based abuse.
