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Investigation & Fraud News – Week ending 22 December 2022
14 stories this week:
SkyCity Adelaide casino accepted bags of ‘soiled’ cash, court documents allege – 7 December 2022
Court documents reveal that cash that was dirty and appeared to have been buried, and money kept in plastic bags, was used in large transactions at the SkyCity Adelaide (SCA) casino. The allegations are part of civil proceedings against SkyCity Adeaide by Australia’s financial crimes watchdog.
AUSTRAC to launch Federal Court civil proceedings against SkyCity Adelaide casino over alleged anti-money-laundering breaches – 7 December 2022
AUSTRAC will issue civil proceedings against SkyCity Adelaide. AUSTRAC alleges serious and systemic non-compliance with anti-money-laundering and counter-terrorism financing laws.
Elizabeth Holmes’s former partner, Ramesh Balwani, given near-13-year prison sentence over Theranos hoax – 8 December 2022
Former Theranos executive Ramesh “Sunny” Balwani has been sentenced to nearly 13 years in prison for his role in the company’s blood-testing hoax. Holmes and Balwani ran Theranos, a company that claimed to have developed a disease-detecting medical scam. The faked technology endangered patients and duped investors.
Embezzlement trial against Markus Braun begins – 8 December 2022
Markus Braun, the former head of disgraced German payment company Wirecard, is charged over the biggest fraud case in German history. Mr Braun has denied embezzling money from Wirecard, and has accused others of running a shadow operation without his knowledge. Wirecard was forced to admit in June 2020 that 1.9 billion euros ($2.9b) were missing from its balance sheet.
Star Entertainment Group fined $100 million over Queensland casino breaches, given 12 months to ‘get their house in order’ – 9 December 2022
Star Entertainment Group has been hit with $100 million in fines and a special manager has been appointed to oversee its Queensland operations following “major failings” at its casinos. The company has also been given 12 months to “get its house in order” or else have its Queensland casino licences temporarily suspended.
https://www.abc.net.au/news/2022-12-09/qld-star-casino-show-cause-100m-fine-licence/101753326
ATO reveals it raided 35 properties suspected of using technology to evade paying tax – 10 December 2022
The (ATO) has revealed it has raided 35 properties nationally as part of a global crackdown on businesses suspected of using or supplying electronic sales suppression tools (ESST). ESST helps businesses permanently delete business transactions, reduce sales values or misrepresent transactions in other ways.
https://www.abc.net.au/news/2022-12-10/tax-raids-taskforce-ato-tech-sales-evasion/101756454
Conman Richard Ayoub jailed over multimillion-dollar scam targeting retirees – 16 December 2022
Richard Ayoub,, an American man living in Australia on a working visa has been jailed for scamming retirees out of about $3 million. Ayoub profited from a scam conning retirees into investing in fake bonds.
Fake myGov profiles are being used to hack ATO accounts. Sue found this out the hard way – 19 December 2022
ABC Investigations has uncovered a vulnerability in the myGov and ATO systems which is being exploited by cybercriminals to defraud the taxpayer. Services Australian told ABC Investigations all that is required to create a myGov account is an email address. No proof of identity is necessary and there is no limit on how many accounts can be opened.
https://www.abc.net.au/news/2022-12-18/ato-tax-hacked-via-mygov-services-australia-exploit/101781656
Australian winery uses new tech to combat wine fraud – 19 December 2022
Grosset Wines, Adelaide, have swapped out their usual bottle caps for ones that use Enseal. The caps have a microchip inserted underneath their top, which consumers can scan with their smartphones to check if the label matches the bottle’s contents. Wine fraud can occur when empty bottles are refilled with other wines and resealed, label details are changed or bottles are labeled with wrong information about variety, region, or vintage.
https://www.daijiworld.com/news/newsDisplay?newsID=1030945
The buried gold, the crumbling fraud case and the billionaires’ tsunami – 20 December 2022
Article describes the Million-dollar fraud case in Orange, were Brian Locke was ousted from the board of the company he founded, had $9 million worth of his shares cancelled and was under police investigation for masterminding a multimillion-dollar fraud. All 133 charges against former Gold and Copper Resources CEO Brian Locke were finally withdrawn.
Foreign national extradited to Qld over alleged scam – 20 December 2022
A young foreign national will be extradited to Queensland over allegations he defrauded $30,000 from an elderly man on the Sunshine Coast. The man was contacted via phone, advising him his accounts had been then the men drove from Sydney to his Sunshine Coast home and pretended to be from his bank and convinced him to hand over bank cards and account details before emptying out his accounts.
https://www.perthnow.com.au/news/foreign-national-extradited-to-qld-over-alleged-scam-c-9222281
FTX founder Sam Bankman-Fried signs extradition papers, hearing scheduled for Wednesday – 21 December 2022
Sam Bankman Fried insists the collapse of his $32 million Crypto empire is the result of human error. Federal prosecutor said Mr Bankman-Fried’s actions amounted to “one of the biggest financial frauds in American history”. He is being extradited from the Bahamas to the United States where he faces fraud charges.
https://www.abc.net.au/news/2022-12-21/ftx-sam-bankman-fried-signs-extradition-papers/101796332
ASIC increases focus on cryptocurrency – 21 December 2022
The Australian Securities and Investments Commission (ASIC) has increased the number of staff dedicated to cryptocurrency, as high-profile collapses like FTX highlight the danger of the unregulated asset class. Cryptocurrency was currently exempt from regulation, leaving it open to use as a vehicle for money laundering, data breaches and financial crime.
https://www.moneymanagement.com.au/news/policy-regulation/asic-increases-focus-cryptocurrency
Police warning: Aussie parents ordered to pay child’s drug debt – 21 December 2022
The New South Wales Police have warned Aussie parents about a NEW text scam impersonating their children and claiming they need to repay a drug debt. While many Aussies said they managed to avoid falling for the scam, the Australian Competition and Consumer Commission said more than 1,150 Australians fell victim to the so-called ‘Hi Mum’ scam in the first seven months of this year, with total reported losses of $2.6 million.
Investigation & Fraud News – Week ending 2 December 2022
14 stories this week:
Did the royal commission fix banking or are banks back to behaving badly? – 26 November 2022
It has been five years since then-prime minister Malcolm Turnbull announced a royal commission into scandals and misconduct in the banking industry. Of the 76 recommendations, many have been implemented but there is still a lot of work still to be done.
https://www.abc.net.au/news/2022-11-26/did-banking-get-fixed-after-the-royal-commission/101691230
‘You can’t be responsible for everyone’s decisions’: Westpac boss pushes back on scam reimbursement – 29 November 2022
Westpac chief executive Peter King has pushed back against calls for banks to reimburse a larger number of scam victims, saying that while lenders were working to fight scammers, customers also had to take some responsibility. The bank normally only reimburses victims when they have not followed the industry’s code of conduct.
EY caught up in alleged Australian coal quality scam – 29 November 2022
According to MP Andrew Wilkie, he has received thousands of documents from a whistleblower said to be an executive within the coal industry, which shows that miners TerraCom, Anglo American, Glencore and Peabody together with the Macquarie Bank and auditor EY as intermediaries engaged in activities to inflate the quality of Australian coal exports – thereby increasing its price and minimising pollution-related import restrictions.
https://www.consultancy.com.au/news/6205/ey-caught-up-in-alleged-australian-coal-quality-scam
How Can Australia Better Protect Whistleblowers? New Report Explains – 29 November 2022
A new report from Griffith University, the Human Rights Law Centre, and Transparency International Australia highlights 12 “areas of reform” in which Australia’s parliament could bolster whistleblower protections and get up to speed with “international best practice.” The report notes that Australia has in the works a National Anti-Corruption Commission, but states that “this highlights big gaps in federal whistleblower protection. The report also displays statistics about current whistleblowers in Australia and contains information about the detriment that whistleblowers experienced, like being fired from their job, facing harassment from co-workers or managers, etc.
Police investigating Melissa Caddick’s disappearance were ‘short-staffed’, inquest hears – 29 November 2022
The detective who took over the investigation into alleged fraudster Melissa Caddick’s disappearance has told an inquest he didn’t re-interview her husband, as he felt he “wasn’t a credible witness”, and accepted there were “major discrepancies” in his version of events. The inquest heard Ms Caddick had life insurance, that included suicide cover, but Detective Sergeant Foscholo’s understanding was Mr Koletti may not have been listed as a beneficiary. Hearings have run over time again, so another date has been set for February.
Security agencies take advice after Chinese camera ban in US, UK – 30 November 2022
Australia’s national security agencies have begun restricting the use of surveillance equipment manufactured by two Chinese firms in government facilities amid a similar block in the US and UK over data security concerns. The Department of Home Affairs, ASIO, and ASD are now scrutinising the use of surveillance cameras from Hikvision and Dahua, with some confirming the Chinese made technology now poses an unacceptable risk and is avoided wherever possible.
https://www.innovationaus.com/security-agencies-take-advice-after-chinese-camera-ban-in-us-uk/
Star Entertainment sued by AUSTRAC for alleged money-laundering breaches – 30 November 2022
Star casinos are facing massive fines, with the anti-money-laundering regulator AUSTRAC launching a Federal Court action seeking civil penalties. AUSTRAC alleges Star failed to implement legally required monitoring of money-laundering risk. Each individual breach can attract maximum penalties of between $18 million and $22 million.
ICAC passed on Daryl Maguire evidence to ‘relevant agencies’ before conspiracy charge – 30 November 2022
Australian Border Force confirmed it had charged Daryl Maguire with conspiring to commit an offence, alleging it was linked to “visa and migration fraud”. Maggie Logan, has also been charged with 12 counts of causing the delivery of a document with a false statement under the migration act. It is alleged the duo furnished visa applications “containing statements or information that was false or misleading” on the Commonwealth, allowing non-citizens to remain in Australia.
https://www.abc.net.au/news/2022-11-30/icac-daryl-maguire-conspiracy-visa-charge/101712632
Vic woman ‘sorry’ for part in $10m fraud – 30 November 2022
Jasmine Vella-Arpaci, a Melbourne woman wrote to her victims, telling them she’s sorry for her major role in a cyber crime syndicate that targeted $10 million in Australian superannuation and share accounts. The group succeeded in defrauding $3 million from superannuation accounts and $238,000 from share trading. There were further attempts to obtain $1.8 million from super funds and $5.7 million in shares.
https://au.news.yahoo.com/vic-woman-sorry-part-10m-054945097.html
‘Orchestrated attack on the banking system’: Property fraudster jailed – 30 November 2022
Sheree Becker has been jailed for three-and-a-half years for taking out fraudulent loans against the ANZ Bank on behalf of low-income customers, who could not afford them. Becker had signed up people on low incomes, including one on Centrelink benefits, to her vendor finance scheme.
Microsoft scam drains elderly couple’s $249,000 savings as Bendigo Bank fails to block transactions – 1 December 2022
An elderly couple who lost a quarter of a million dollars in a sophisticated online scam have slammed Bendigo Bank for failing to block the suspicious transactions. Two of their banks, NAB and HSBC, immediately blocked the attempted withdrawals when they noticed the unusual payments.
Former bank employee Sara Daizli facing 237 fraud charges – 2 December 2022
Police allege a former bank employee used her role at the bank to open accounts in fictitious names and swindle hundreds of thousands of dollars. Police claim Ms Daizli siphoned money into her bank account under a false name and allegedly made fraudulent loan applications to ANZ and St George banks.
Hackers declare ‘case closed’ as they leak more Australian health data – 1 December 2022
Hackers appear to have ended their extortion bid as they dump more customer data from insurer Medibank, which had refused to pay $9.7 million in exchange for hackers keeping the stolen records off the internet.
Aussie bitcoin mogul sentenced in the US, advisers slam DOJ – 1 December 2022
Australian bitcoin mogul Greg Dwyer, has been sentenced to one year probation after being found guilty of violating US banking laws while he was a senior executive at troubled cryptocurrency exchange BitMEX, as his advisers slammed authorities for their heavy-handed approach to his charges.
Access to digital version of WA today required to read full article.
Investigation & Fraud News – Week ending 25 November 2022
12 stories this week:
Aussie father reveals how scammers outsmarted him and his bank – 16 November 2022
New South Wales Police believe scammers are getting smarter and consumers need to be wary. An Aussie father had $27,380 taken out of his account. The scammers not only outsmarted him, but also his bank.
Origin issues warning for 4.2 million customers – 16 November 2022
Origin is warning customers about a new SMS scam that tries to steal their payment details. The scam text message tells customers they have an unpaid account and directs them to a fake Origin website. From here, the customer is asked to enter their Origin details and payment information.
https://au.finance.yahoo.com/news/origin-issues-warning-for-42-million-customers-020022895.html
ClubsNSW litigation against dying whistleblower an ‘abuse of process’, lawyers say – 16 November 2022
Whistleblower Troy Stolz will ask the Federal Court that contempt proceedings brought against him by ClubsNSW to be permanently stayed. ClubsNSW said an interview he gave to YouTuber Friendlyjordies breached a court order. Stolz’s lawyers are expected to argue that material has come to light showing ClubsNSW is bringing its contempt action to intimidate him.
Elizabeth Holmes sentenced to 11 years in prison on fraud charges – 19 November 2022
Elizabeth Holmes, the former CEO and founder of Theranos, has been sentenced to just over 11 years in prison for defrauding the investors of her blood testing startup. The sentence comes almost a year after Holmes was found guilty on four counts of fraud following a months-long trial.
https://au.finance.yahoo.com/news/elizabeth-holmes-theranos-fraud-sentence-221816950.html
Bunnings, Kmart issue urgent warning over new scam – 19 November 2022
Australian job seekers are being warned about a new employment scam circulating on social media, offering jobs at Bunnings and Kmart. The fake Bunnings job ads use the retailer’s official logo and lure unsuspecting job seekers with an hourly rate ranging from $48 to $75 to gain peoples personal details.
https://au.news.yahoo.com/bunnings-kmart-issue-urgent-warning-over-new-scam-015246675.html
Christian Dior has held Caddick funds for years, whistleblower tells authorities – 19 November 2022
A whistleblower from Christian Dior has alerted authorities to hundreds of thousands of dollars stolen by missing fraudster Melissa Caddick, that have been held for the past two years at the fashion house’s Sydney office.
Access to digital version of SMH required
How fraudsters used Porsche IPO to target Australians – 20 November 2022
Article outline details about the claims of Fraudulent Porsche IPO offerings and BN Capital, pretending to be a financial services entity. The fraud includes highly professional websites, investment documents and correspondence and claims the banks are not doing enough to protect customers.
Coal exporters accused of falsifying data to prove coal is cleaner, boost profits – 21 November 2022
Leaked details provided by a whistlwhistleblower, claim Australian coal exporters are falsifying data to show their coal is cleaner. MP Andrew Wilkie said “the alleged scam has allowed companies to claim for years that Australian coal was cleaner than it was in reality in order to boost profits and to prevent rejection of shipments at their destinations”.
High-flying first Chinese executive at PwC Australia is accused of $3.3million fraud to buy a Porsche and pay for renovations to the six bedroom mansion she shares with her husband – 22 November 2022
Shao Hong, a high-flying audit assurance partner at PwC Australia and her husband Di Wu are accused of stealing $3.3million from Creative Promotions, a family-owned business. It is alleged they stole millions from them between 2010 and 2022 by ‘digitally altering’ genuine invoices and creating other fake invoices. They allegedly spent the money building dream home in Sydney’s north shore. The Couple’s assets have been frozen as they face legal action to recover cash.
Reality stars Todd and Julie Chrisley sentenced to combined 19 years in prison for bank fraud, tax evasion – 22 November 2022
Reality stars Todd and Julie Chrisley received sentences for their convictions on charges of bank fraud and tax evasion. In June, the couple were convicted of having inflated their net worth in order to secure more than $30 million in fraudulent loans. They were also found to have dodged their taxes since as early as 2009 and to have hidden their earnings.
HashFlare’s Sergei Potapenko and Ivan Turogin charged over four-year cryptocurrency pyramid scheme – 22 November 2022
Sergei Potapenko and Ivan Turogin are charged with wire fraud and conspiracy to commit money laundering. It is alleged that they operated a pyramid scheme and bought luxury cars and real estate with the fraudulent $870 million.
How and why Australian whistleblowing laws need an overhaul: new report – 23 November 2022
Recent developments in Australian whistleblowing cases and the parliamentary debate over Australia’s new National Anti-Corruption Commission (NACC), have shown how critical it is to get our whistleblower protection laws back up to world standards. A new research report, published by Griffith University, the Human Rights Law Centre and Transparency International Australia, seeks to present a clear roadmap for getting these reforms right.
Investigation & Fraud News – Week ending 18 November 2022
12 stories this week:
Anti-corruption watchdog report ‘unanimous’ but crossbenchers signal whistleblower, public hearings fight ahead – 11 November 2022
Australia has inched closer to having a federal anti-corruption watchdog after a multi-partisan committee scrutinising the proposal handed down a unanimous report in support of it.
Subscription required to access article.
Pilot accused of illegally chartering flights told wife ‘it’s only money, no one’s been run over’ – 11 November 2022
Josh Hoch, a pilot has appeared in court accused of chartering flights for Katter’s Australia Party members without a certificate to fly commercially. He has pleaded not guilty to 14 charges.
Cyber Security Minister Clare O’Neil flags multiple reforms to protect personal data after Medibank data leaks – 13 November 2022
The Federal Government is considering making it illegal to pay ransoms. Tighter regulation could also extend to data retention, something Cyber Security MinisterClare O’Neil described as a “national vulnerability’. Data retention forms part of a review of the Privacy Act currently being undertaken by Attorney-General Mark Dreyfus.
https://www.abc.net.au/news/2022-11-13/medibank-data-breach-cybersecurity-latest/101648178
The whistleblower tapes exposing racism in Queensland’s police force – 13 November 2022
Audio recordings leaked to Guardian Australia, by a whistleblower reveal several officers and sworn police using racist and offensive language, while working in a Brisbane watch house. The audio, condemned by Queensland police and the state government, follows evidence at the state inquiry into police responses to domestic and family violence, which included dozens of examples of racist, misogynistic and sexist behaviour.
US prosecutors seek 15 years in prison for Theranos founder Elizabeth Holmes – 13 November 2022
US prosecutors have recommended Theranos founder Elizabeth Holmes spend 15 years in prison and pay $US800 million ($A1.1 billion) to investors defrauded by her blood testing start-up. The company claimed to be able to run many tests on one drop of blood. It collapsed in 2015 after a series of articles suggesting its devices were flawed.
Wannabe rapper confronted over $700k worth of missing gold – 13 November 2022
Abdel Ghadia, found $760,000 in his bank account – and bought gold bars and coins before police arrested him last year. It seems that a mortage brokers email was comprised and a couple purchasing a house where told to transfer into Abdels bank account. Police arrested Ghadia as part of a major crackdown on a ruthless cybercrime syndicate. However, court documents revealed there is no indication Ghadia was involved in the money transfer and the $700,000 worth of gold the rapper bought, has not been recovered.
https://9now.nine.com.au/a-current-affair/rapper-confronted-over-700-000-dollars-worth-of-missing-gold/94265019-e811-4f2c-9cdc-0658e9aedfdb
NEWS: Australia is ‘economically vulnerable’ to dirty money says FinCrime expert – 15 November 2022
A financial crime expert has warned that Australia is “economically vulnerable” to money laundering. Nathan Lynch, author of the Lucky Laundry explained that the country’s role as a “major international hub” for laundering dirty money has developed due to Australia’s dependence on foreign funding.
https://www.amlintelligence.com/2022/11/news-australia-is-economically-vulnerable-to-dirty-money/
Subscription to AML required to read full article
Two men who conspired to manipulate recruitment processes at Department of Finance avoid jail – 15 November 2022
Abdul ‘Alex’ El-Debel and Raminder Kahlon were found guilty of conspiring with a third man to dishonestly obtain a benefit from the Commonwealth, by putting forward candidates from companies with which they were associated. They will rve intensive corrections orders for three and a half years, and will also have to complete 300 hours of community service.
https://www.abc.net.au/news/2022-11-15/finance-public-servant-businessman-spared-jail-fraud-conspiracy/101654260
Inside a scam: How cybercriminals are shaping Australia’s digital future – 15 November 2022
Cybercrime is the new face of organised crime – except in the online world, you can’t see the crooks. The hackers hide behind their keyboards and phones, wreaking havoc from every corner of the globe. Debroah night, has created the Pod Cast Anatomy of a Scam, were she breaks down some of the more common scams doing the rounds and explore the technology and psychology used by the cyber-crooks.
Government boosts whistleblower laws – 16 November 2022
Whistleblowers in Australia will be afforded stronger protections under new government legislation set to hit parliament. It means Australia will have stronger whistleblower protections in place before the National Anti-Corruption Commission gets going, which is expected from the middle of 2023.
https://au.news.yahoo.com/government-boosts-whistleblower-laws-231717027.html
Jim Marinis and Mary-Jane Daffy lose $40,000 and rack up over $20,000 debt in banking scam saga – 16 November 2022
Jim Marinis and Mary-Jane Daffy, a couple who are small business owners in Melbourne, have lost $40,000 from suspected fraudulent bank transactions, after their personal data was stolen. The cyber criminals also racked up $20,000 debt in personal loans taken out online in their name and applied for a $200,000 loan. The Melbourne based criminals are quite experienced and created a spider’s net so extensive, as they hacked Mr Marini’s personal accounts one after the other including his MyGov account.
Email invoice scam targets Victorian farmers, with ‘insane’ amounts of money lost to criminals – 18 November 2022
Scammers have been targeting Victorian farmers with fake invoices that appear to be from regular suppliers. The scammers are including dodgy phone numbers too and it often goes to someone who speaks perfect English.
https://www.abc.net.au/news/2022-11-18/email-invoice-scam-targets-farmers-victoria-hackers/101659502
