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Investigation & Fraud News – Week ending 9 April 2023
9 stories this week:
Bank impersonation scams robbing Australians of their life savings – 30 March 2023
Scammers are using new technology to trick their victims, by making the call appear to come from the bank’s legitimate phone number or by sending a text that appears in the same conversation thread as genuine bank messages. Scamwatch received 14,603 reports about bank impersonation scams in 2022, resulting in more than $20 million in losses. Total losses to phone and text scams increased significantly last year, with over $169 million lost.
US accuses Fugees rapper of illegal lobbying with Malaysian financier Jho Low – 31 March 2023
A US prosecutor has accused Grammy Award-winning rapper Prakazrel “Pras” Michel of The Fugees hip hop group of illegally taking tens of millions of dollars to lobby the US government on behalf of a Malaysian financier and the Chinese government. Michel is being tried on 11 criminal counts, including lobbying schemes to influence the administrations of former presidents Barack Obama and Donald Trump.
Whistleblower laws under scrutiny after being tested in court – and failing – 3 April 2023
Australia’s current whistleblower protection laws have been tested in court and found to be no defence for public servants accused of high-level breaches. Richard Boyle used the federal Public Interest Disclosure Act to ask for 23 of the 24 charges against him to be dropped, but his request was denied. The Federal Government has wanted whistleblower laws strengthened in time for the new National Anti-Corruption Commission to start operating.
Shipbuilder Austal sinks on former U.S. executives’ indictment for financial fraud – 3 April 2023
Australian shipbuilder Austal Ltd shares went down after the U.S. Department of Justice (DOJ) charged three former employees for “allegedly making or causing to be made false and misleading statements about Austal USA’s performance and financial condition between 2012 and 2016. The company since then has announced a write-back to adjust its revenue and profit, settled an investigation by Australia’s securities regulator, and conducted its own investigation into the matter, which resulted in the resignation of the president of Austal USA.
Up to $3 billion in taxpayer money lost to Medicare fraud and non-compliance annually, government review finds – 4 April 2023
Between $1.5 billion to $3 billion is being lost to Medicare fraud and non-compliance every year, according to an independent review that warns the overly-complex system is out of date and risks bleeding more taxpayer money.
https://www.abc.net.au/news/2023-04-04/medicare-fraud-non-compliance-report/102183698
‘Down Under Barbie’ Skye Louise Rivers faces string of fraud charges – 5 April 2023
Instagram influencer Skye Louise Rivers is yet to enter an official plea on more than 150 charges of fraud related to what police allege was a “sophisticated” scheme of using other people’s information to open bank accounts and set up lines of credit for two years.
Donald Trump pleads not guilty to 34 felony fraud charges over alleged hush money payments during 2016 election campaign – 5 April 2023
Donald Trump has been formally charged with falsifying his business records in a bid to hide damaging information during the 2016 presidential election. The charges relate to alleged payments made during his 2016 presidential campaign. He pleaded not guilty to all counts, and was released without a requirement to post bail.
https://www.abc.net.au/news/2023-04-05/donald-trump-pleads-not-guilty-to-criminal-charges/102183764
Allegations of $150,000 fraud result in woman arrested in Yass – 6 April 2023
A Yass woman was charged with three counts of dishonestly obtaining property by deception as well as single counts of dealing with property suspected to be the proceeds of crime and knowingly dealing with proceeds of crime.
https://aboutregional.com.au/allegations-of-150000-fraud-result-in-woman-arrested-in-yass/
Hepburn mayor may sue OpenAI for defamation over false ChatGPT claims – 6 April 2023
A regional mayor may take unprecedented legal action to sue the creator of AI chatbot ChatGPT for defamation, after the program falsely claimed he was a guilty party in a foreign bribery scandal in early 2000s. Legal experts say the case is in uncharted legal territory.
Investigation & Fraud News – Week ending 31 March 2023
14 stories this week:
Two charged over alleged $3.5 million self-managed superannuation fraud – Strike Force Gulgin – 23 March 2023
A man and a woman have been charged with 84 offences after allegedly defrauding several clients of $3.5 million in a self-managed super fund scheme. It is alleged Police will allege in court that the pair, who were accountants based in Sydney, established self-managed super funds on behalf of more than 20 people before allegedly misappropriating about $3.5 million between 2007 and 2020.
Australia Dismantles BEC Group That Laundered $1.7 Million – 27 March 2023
The AFP announced the arrest of four individuals accused of laundering more than $1.7 million from BEC attacks, Facebook marketplace scams, and fraudulent superannuation investments. The suspects, two men and two women, are charged with possessing and producing false documents, dishonestly dealing in personal financial information, and dealing in proceeds of crime.
https://www.securityweek.com/australia-dismantles-bec-group-that-laundered-1-7-million/
Australia: Workplace surveillance and employee monitoring on the rise – 28 March 2023
Workplace surveillance involves monitoring and collecting data on what employees are doing, typically via software installed on their computers. Article tackles questions such as: Is workplace surveillance legal in Australia?; Is it legal to monitor or record phone calls or videos in Australian workplaces?; Does workplace surveillance lead to higher productivity?; and does workplace surveillance can damage morale and culture?
Shipping container scams on the rise, as ACCC calls on providers like Facebook to act – 28 March 2023
The ACCC said consumers lost $1.8 million to shipping container scams in 2022, with 499 incidents reported. The scammers impersonate real Australian companies online. Now the ACCC wants Facebook and other platforms to take more responsibility for shutting scams down.
Banks should not pick up entire $4b scam tab, minister says – 28 March 2023
Financial Services Minister Stephen Jones opposes a “blanket rule” that banks be required to fund scam recovery. Stating that, if they they’ve met that standard, and done what they can, they shouldn’t still end up with the bill. Advocacy groups including the Consumer Action Law Centre have called for banks to be liable for losses incurred by customers who are scammed and for banks to invest more heavily in fraud prevention.
ASIC investigates ASX for CHESS breaches – 29 March 2023
The corporate regulator is investigating whether the ASX and its directors and officers have breached their legal obligations during the bungled CHESS replacement project. Chess is the system used to record transactions on the financial markets. The investigation would focus on oversight of the CHESS replacement program and statements and disclosures made by, or on behalf of, ASX as to the “status of the program”.
https://au.news.yahoo.com/share-market-operator-probed-bungled-231043775.html
FTX’s Sam Bankman-Fried charged under US law with bribing Chinese officials in new indictment – 29 March 2023
FTX founder Sam Bankman-Fried has been charged with directing $US40 million ($59.6 million) in bribes to one or more Chinese officials to unfreeze assets relating to his cryptocurrency business. He has pleaded not guilty to 8 of the 13 counts he faces. He was previously charged with eight criminal violations, ranging from wire fraud to money laundering to conspiracy to commit fraud.
Former Courgette chef James Mussillon described as ‘socially incompetent’ in money laundering case – 29 March 2023
Reknown Canberra chef, James Mussillon has pleaded guilty to money laundering, perjury and obtaining property by deception.
The court heard he paid fake wages to another man who did not actually work at Courgette Restaurant. A psychiatrist has diagnosed Mussillon with autism and post-traumatic stress disorder.
Supreme Court of Queensland bans Gladstone man Surendra Raghoobar from practising law – 29 March 2023
The Supreme Court of Queensland has banned Gladstone’s Surendra Raghoobar from practising law after it found he engaged in legal practice despite not being an Australian legal practitioner. Mr Raghoobar, claimed he did not provide legal services and was only assisting clients with tasks like proofreading and editing documents.
https://www.abc.net.au/news/2023-03-29/gladstone-man-banned-practising-law/102157798
Why ATO whistleblower Richard Boyle will face criminal tria – 30 March 2023
A court has ruled that Richard Boyle, the man who blew the whistle on “intimidating” debt collection tactics by the Australian Taxation Office is not protected from criminal action because he failed to disclose crucial evidence at the right time.
Whistleblower ruling ‘makes it harder for Australians to speak up’
Kieran Pender, senior lawyer at the Human Rights Law Centre, said the decision was “catastrophic for Australian whistleblowers” and would “make it harder for Australians to speak up about human rights violations, government wrongdoing and corporate misdeeds”.
Senator Andrew Bragg proposes private bill to regulate cryptocurrency services – 30 March 2023
The proposed Digital Assets (Market Regulation) Bill 2023 aims to protect consumers and promote investment by recommending regulatory changes for stablecoins, licensing of exchanges and custody requirements. If passed, the bill would require a licence from the Australian Securities and Investments Commission or a foreign licence for anyone operating a cryptocurrency exchange, custody service or stablecoin issuer in Australia.
Canberra man jailed for complex fraud linked to organised crime – 31 March 2023
A Canberra man has been jailed for his role in an elaborate $13 million fraud with links to transnational and serious organised crime groups and after receiving $136,535 for his role in the scheme. A coordinated investigation of a transnational and serious organised criminal syndicate allegedly using labour hire and payroll companies associated with the building and construction industry to defraud the Commonwealth.
Donald Trump indicted by Manhattan grand jury on more than 30 counts related to business fraud – 31 March 2023
Donald Trump faces more than 30 counts related to business fraud in an indictment from a Manhattan grand jury, according to two sources familiar with the case – the first time in American history that a current or former president has faced criminal charges.
https://edition.cnn.com/2023/03/30/politics/donald-trump-indictment/index.html
Investigation & Fraud News – Week ending 24 March 2023
15 stories this week:
Adelaide builder Joseph Biju Kavilpurayidathil jailed for fraud against homebuying migrants – 2 March 2023
Joseph Biju Kavilpurayidathil, pleaded guilty to 18 counts of dishonest dealings with documents for making fraudulent invoices and insurance certificates for some of the homes built through his company, Fenbreeze Homes, which has since gone into liquidation.
Police Whistleblower Pens 4-Page Letter Exposing SAPOL’s Highly Toxic, Dysfunctional Culture – 4 March 2023
A senior police officer, with over 35 years’ experience in the force, has written a scathing 4-page letter highlighting the worsening situation at the already dysfunctional SAPOL. The letter lists numerous impacts of the scheme, introduced by commissioner Grant Stevens and states that “SAPOL is now an organisation (business) bogged down in needless red tape and paperwork and it is only going to get worse”
Museum contractor arrested over alleged $90,000 fraud – 4 March 2023
A man has faced court for allegedly stealing $90,000 from the Australian National Maritime Museum, other businesses and individuals. It’s claimed the Macquarie Park man accessed the museum’s accounts payable system through his work as a contracted IT support worker to a third-party provider. He also allegedly made a series of unauthorised credit card purchases, after stealing financial information regarding several other businesses and individuals.
https://www.perthnow.com.au/news/crime/museum-contractor-arrested-over-alleged-90000-fraud-c-9935827
Scam protection from banks under scrutiny as Australians lose $53m in two months – 6 March 2023
Sharon Watkin was scammed out of tens of thousands of dollars by a sales representative claiming to be from Amazon. She says Australian banks need to do more to protect customers. Australians have already lost $53m this year, according to Scamwatch.
ASIC Bans Insurance Broker Permanently – 6 March 2023
ASIC has permanently banned former insurance broker Justin Edward Hampshire, from providing any financial services and being involved in carrying on such a business. ASIC found that Mr Hampshire incorrectly directed his clients to pay their insurance premiums into a business account he controlled when the money should have been paid straight into Ausure’s trust account. Mr Hampshire misappropriated $41,000 of four of his clients’ insurance premiums for his own benefit.
https://www.miragenews.com/asic-bans-insurance-broker-permanently-960242/
Son of former ATO deputy commissioner found guilty over role in $105m tax fraud – 7 March 2023
Adam Cranston, the son of former ATO deputy commissioner Michael Cranston, has been found guilty by a NSW Supreme Court jury over his role in a $105 million tax-fraud scheme. Adam and two co-accused were found guilty of conspiring with another person to dishonestly cause a loss to the Commonwealth, and conspiring with another person to deal with money more than $1 million, believing it to be proceeds of crime.
Perth Mint chief executive admits ‘doping’ controversy hurts reputation as WA opposition calls for royal commission – 7 March 2023
An investigation by the ABC’s Four Corners revealed the Mint had supplied gold to China between 2018 and 2021 that met broader industry purity standards, but in at least one instance, fell below Shanghai’s stricter standards. Internal reports allege the Mint then withheld evidence about the practice from its largest client, which an insider described as “a scandal of the highest level”.
Queensland whistleblower ‘vindicated’ by former Logan mayor Luke Smith’s guilty pleas – 8 March 2023
Sharon Kelsey, a whistleblower who was fired after reporting the misconduct of a former Queensland mayor, Luke Smith says his guilty plea on a corruption-related charge is a “complete vindication”. Smith pleaded guilty to receiving a ‘secret commission from an agent’ in 2016.
Review your whistle blower program now to meet ASICs new good practice guidance – 10 March 2023
Article describes current whistleblower laws and ASIC’s actions to date and where the good practices for whistleblowing programs came from. It also details ASIC announcement that it was taking legal action against TerraCom Limited, its managing director, chief commercial officer, former Chair and a former director, for the first time under these laws.
Charities watchdog to review fraud allegations made in parliament against Hillsong – 10 March 2023
Independent MP Andrew Wilkie, has used parliamentary privilege, to accuse Hillsong church of breaking financial laws in Australia and around the world, relating to “fraud, money laundering and tax evasion”. Hillsong disputed the allegations, labelling them as “out-of-context” or false. The Charities and Not-for-profits Commission stated it would investigate the allegations. https://www.abc.net.au/news/2023-03-10/federal-mp-accuses-hillsong-money-laundering-tax-evasion/102077080
Facebook Marketplace scams to be aware of when buying or selling goods online – 10 March 2023
A cybersecurity expert says Facebook is not doing enough to stamp out scammers on marketplace. Fake account owners insist on paying with PayID, which used a person’s mobile number or email address to link to their bank account. Scammers then try to convince people that they had transferred too much money, and request they transfer the difference back.
Financial services a key focus for ACCC this year – 10 March 2023
ACC plans the introduction of new laws prohibiting unfair contract terms, including a new penalty regime later this year. ACCC also has its eyes on scams, which continued to cause tremendous personal and financial damage to consumers and the Australian economy.
Psychoanalysts Put White-Collar Criminals on the Couch – 13 March 2023
White-collar crimes are nonviolent, opportunistic criminal activities by people of high respectability and status in their jobs. Article explains how leaders can proactively mitigate and defend against malfeasance by understanding the drivers of white-collar crime.
Police Charge Two Over $594K Theft, Fraud From Retail Store – 15 March 2023
Financial Crime Squad detectives have laid 159 charges against two former employees of a retail store following an investigation into alleged fraud and stealing offences. Police will allege in court that the man and woman obtained more than $594,000 from their employer.
https://www.miragenews.com/police-charge-two-over-594k-theft-fraud-from-966459/
Chinese businessman with ties to Trump administration figures arrested in $US1 billion fraud conspiracy – 16 March 2023
Guo Wengui, a business tycoon long sought by the government of China and known for cultivating ties to Trump administration figures including Steve Bannon has been arrested in New York on charges that he oversaw a $US1 billion ($1.5 billion) fraud conspiracy. He faces more than a century in jail if convicted.
Final conspirator found guilty of $105m Plutus tax fraud – 21 March 2023
A jury in the NSW Supreme Court found Patrick Willmott, 36, guilty of conspiring to defraud the Commonwealth and dealing with more than $1 million in proceeds of crime. The conspiracy defrauded the tax office of more than $105 million from 2014 to 2017 through a free payroll service known as Plutus Payroll that shifted tax money using a complex network of second-tier companies. Patrick Willmott is the fifth person to be jailed for the fraud.
Investigation & Fraud News – Week ending 17 February 2023
14 stories this week:
Why the AFP and ASIC are still using tech from a group under investigation – 26 February 2023
At the time of Nuix’s public float in late 2020, the $1.8 billion investigative software group claimed the globe’s corporate cops could not live without its data forensics tools. Now, Australian regulators – which have been using Nuix’s own programs to pursue the embattled tech group and its former executives for alleged breaches of companies laws – need to find out if this is true.
Access to digital version of SMH required to read this article.
Push for inquiry into consulting firms after PwC tax leaks – 27 February 2023
The Greens will push for a Senate inquiry into the way the federal government uses consultants. This is due to concerns about the PwC tax leaks scandal and the big four consulting firm’s inability to explain why it buried a damning report, into the unlawful robo-debt scheme.
‘Illegal’ strip searches of children among claims made by Queensland watch-house whistleblower – 27 February 2023
In a damning submission to the state’s youth crime bill, Brisbane watch-house officer Steven Marshall detailed what he described as “human rights breaches” that he witnessed at Brisbane Watch House during 2018 and 2019. He warns a new proposal by the Palaszczuk government to make breach of bail an offence for children could result in further chaos at watch houses, due to increase numbers. Queensland police have been contacted for comment.
Calls for national body to protect whistleblowers – 27 February 2023
A parliamentary inquiry is examining whistleblower protection reform, set to be implemented ahead of the start of the National Anti-Corruption Commission. Senior lawyer for the Human Rights Law Centre Kieran Pender said while other countries had set up broader bodies to oversee whistleblower protections, Australia was yet to establish a similar organisation.
https://au.news.yahoo.com/calls-national-body-protect-whistleblowers-020759811.html
Melbourne man accused of demanding crypto in bushfire threat – 28 February 2023
Cybercrime detectives have charged a Melbourne man after he allegedly threatened to start a bushfire if $5 million in cryptocurrency was not transferred within three days. The man was later arrested and charged with extortion with threat to endanger life and threat to destroy or damage property.
Australians urged to beware of new PayID impersonation scam – 28 February 2023
National Australia Bank (NAB) urged people who sell unwanted or used items online to watch out for a new PayID impersonation scam. Sammers will buy items using PayID but then claim that the transaction couldn’t be completed because the seller doesn’t have a PayID business account. Scammers will claim they’ve sent extra money to upgrade the account, send a fake email, and pressure the seller to reimburse them. But no money will ever appear in the seller’s account.
Surveillance tech Auror under lens after Greens Senator calls for “urgent review” – 28 February 2023
Greens Senator David Shoebridge has called for Parliament to urgently review the widespread use of retail surveillance technology. He believes an urgent review and regulation of crime intelligence platforms are required to safeguard the public against invasions of privacy and exploitation.
https://www.smartcompany.com.au/technology/surveillance-tech-auror-senator-review/
Ex-MAFS star charged over alleged boiler room scam makes surprising court request – 28 February 2023
Mr Daniel Webb, who rose to fame as one of the grooms of the popular reality show MAFS, is alleged to have pocketed hundreds of thousands of dollars dispersed by one of the companies linked to the cold-call scam syndicate. Police allege the boiler room scam, which included multiple people other than Mr Webb, would cold call victims and offer investments in products that did not exist and duped more than $20m from hundreds of victims.
Experts call for urgent whistleblower protections for migrant workers who report exploitation – 28 February 2023
Migrant workers generally endure exploitation in silence for fear of jeopardising their visa or ability to stay in Australia. Organisations and unions across Australia are calling for urgent whistleblower protections for migrant workers.
https://www.hrlc.org.au/reports-news-commentary/report-breaking-the-silence
Australian watchdog sues coal miner TerraCom over whistleblower violations – 1 March 2023
ASIC has filed a lawsuit against coal miner TerraCom Ltd (TER.AX) alleging it breached whistleblower protections, after a former employee claimed it had falsified the quality of its coal for export. (ASIC) has been investigating TerraCom over allegations of inflated coal quality in export documentation, since claims were first aired in early 2020, as part of an unfair dismissal case.
Former public servant avoids jail over JobSeeker fraud, magistrate accepts man was ‘driven by need, not greed’ – 1 March 2023
A former Commonwealth public servant will not spend time in jail for establishing a fictional Centrelink account in order to receive JobSeeker payments, later paid into his teenage son’s bank account. He was sentenced to six months in jail but was released on an 18-month good behaviour order and 60 hours of community service
SAPOL steals the win at 2023 Australian Fraud Awards – 1 March 2023
A South Australia Police (SAPOL) initiative titled ‘Operation Measure’ which targets retail shop theft has been recognised with a national award winning the Best Retailer and Policing Collaboration Award at the 2023 Australian Fraud Awards on 9 February 2023.
ASIC Bans Property Fundraiser over Fraud Convictions – 2 March 2023
ASIC has permanently banned Sean Colville Niven, of Perth, Western Australia, from providing financial services and engaging in credit activities. Mr Niven was convicted in the Perth Magistrates Court for two offences contrary to the Bankruptcy Act. Namely, making a declaration that he knew to be false, and for disposing of property intending to defraud creditors.
https://www.miragenews.com/asic-bans-property-fundraiser-over-fraud-958074/
Andrew Wilkie demands NSW Police launch investigation after Hillsong podcast – 3 March 2023
Independent MP Andrew Wilkie says NSW police must “act today” after a new podcast raised serious allegations about a Hillsong institution. News Corp Australia’s new podcast ‘Faith on Trial’ contains allegations from five different women that young, female students at the college were taught to physically “submit” to their husbands. Mr Wilkie said the allegations were nothing short of “shocking” and demanded immediate action.
