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Investigation & Fraud News – Week ending 17 June 2022
13 stories this week:
Religious fraudster jailed for stealing $2.7m from worshipper and gambling it away at casin – 10 June 2022
Munir Muzafar Fakhrud Hassanali who defrauded a fellow member of a Perth religious community out of $2.7 million and gambled most of it away, has been sentenced to six years and nine months jail. He was found guilty of 82 fraud offences committed between June 2017 and November 2019.
Western Sydney man and woman charged over covid-19 payment fraud – 10 June 2022
Two Malaysian nationals have been charged over their alleged roles in a syndicate suspected of fraudulently claiming more than $440,000 in COVID-19 Disaster Payments. Police allege customers who had employed the online service, had provided identity documents to the ‘agents’ and some reportedly paid up to $1000 for the agents to facilitate their claims.
Prosecuting UK Corporate Fraud May Be About to Get Much Easier – 10 June 2022
New Long-awaited UK law reforms include an option, that would make it a criminal offence, for a company to fail to prevent a fraud, according to a series of proposals by the Law Commission. The laws would help boost conviction rates, by allowing authorities to target companies, that failed to put measures in place to prevent their own staff committing fraud.
Isolation. Strip-searches. Rape: Inside a Tasmanian youth detention centre – 10 June 2022
In October 2019, Alysha was hired to introduce better care to the Ashley Youth Detention Centre in Tasmania. She revealed her belief that sexual and other abuse of vulnerable children and teen detainees was systemically covered up or mishandled. Eventually, she raised her concerns with two Tasmanian premiers, as well as a commission of inquiry. To date, 32 Tasmanian public servants have been stood down pending the commission’s findings. The Ashley Youth Detention Centre is set to close in three years’ time.
Man’s $651k horror after Googling partner’s name – 11 June 2022
Luke Allen has accused his former partner of stealing his identity and racking up thousands of dollars in debt in his name. He believes credit cards and loans were taken out in his name, totalling $651,060, which Allen claims to have had no knowledge of. In a statement, Victoria Police said detectives had received a report of fraud, alleged to have been committed over a four-year period.
Queensland launches inquiry into Star’s suitability to hold a casino licence – 14 June 2022
The Queensland government will launch an inquiry into Star Entertainment’s suitability to hold a casino licence, after a NSW inquiry heard allegations that Star had potentially acted criminally. Star has also been called to give evidence at an inquiry into proposed gambling and money laundering laws in Queensland.
Melbourne company convicted after ABF investigation into illegal workers – 14 June 2022
A Melbourne company (M & G Vizzari Pty Ltd) who operates farms, has been convicted and fined following an Australian Border Force (ABF) investigation into community allegations of the use of illegal workers.
https://www.miragenews.com/melbourne-company-convicted-after-abf-800303/
ASIC escalates investigation into Sweetman Renewables – 14 June 2022
ASIC has escalated the Nature Conservation Council’s complaint about possibly misleading and deceptive conduct by Cessnock-based energy start-up Sweetman Renewables, to a full-blown inquiry. There seemed to be numerous media articles that stated Sweetman has signed a contract with a Japanese company to supply woodchips but in fact this was not the case.
https://www.nationaltribune.com.au/asic-escalates-investigation-into-sweetman-renewables/
Kmart, Bunnings and The Good Guys under investigation over use of facial recognition cameras – 15 June 2022
Consumer group CHOICE is looking into the retail giants’ use of the controversial technology, which is used on customers as they enter stores. CHOICE said some survey respondents described the technology as “creepy and invasive” and “unnecessary and dangerous”.
Creating A Federal Anti-Corruption Commission: What Does It Mean For Australian Business? – 15 June 2022
One of Labor’s election policies is to introduce a National Anti-Corruption Commission. During the election campaign, Labor promised that any Commission created would be “real”, and a “powerful, transparent and independent” Commission. Article discusses the implications for business and corporate Australia.
Israeli court finds Gaza aid worker guilty of financing terrorism – 16 June 2022
Mohammad El Halabi, the former head of the US-based charity World Vision’s Gaza office, was arrested in 2016 after being accused by Israel’s Shin Bet security service of transferring tens of millions of dollars to Hamas, the Palestinian militant group in control inside the Gaza Strip. He has been held in pre-trial detention since. He has now been convicted after a six-year-long case and will be sentenced.
Peter Foster faces court on the Gold Coast, slams fraud-related charges as ‘bogus’ – 17 June 2022
Peter Foster has faced Southport Magistrates Court over fraud-related charges. He is accused of defrauding a Hong Kong pilot of Bitcoin, valued at about $2 million, in 2019 and 2020.
https://www.abc.net.au/news/2022-06-16/peter-foster-faces-court-gold-coast-fraud-charges/101157792
Guy Sebastian had ‘barrow to push’ against former manager accused of embezzling $800,000, court told – 17 June 2022
Mr Day, Guy Sebastians former manager has pleaded not guilty in the NSW District Court to 50 charges over the alleged embezzlement of nearly $900,000 from Sebastian, who he managed for a decade. These were for royalties and performance feels. The Judge directed jurors to find Mr Day not guilty of three embezzlement counts, however, 47 remained.
Investigation & Fraud News – Week ending 10 June 2022
11 stories this week:
How Telstra gave my details to crypto scammers – 3 June 2022
Illegal access to a Telstra account enabled scammers to have access to a victims emails and therefore all sorts of personal banking information. They were able to .get banking and credit card details, and looked for opportunities to defraud this victim’s family, friends and colleagues. A good article showing how to spot a telco scam.
https://www.moneymag.com.au/how-telstra-gave-my-details-to-crypto-scammers
AI facial recognition, the new detention – 6 June 2022
Hear Professor Toby Walsh, Professor of artificial intelligence, UNSW School of Computer Science & Engineering discuss the use of Face recognition apps and the safeguards to protect our digital privacy and freedoms in Australia.
Flood recovery grant fraud battle slows cash flow for those who desperately need it – 6 June 2022
Businesses and residents in northern New South Wales say their details have been used for fraudulent grant applications. When Andrea Bonotto’s applied for the second part of an approved small business recovery grant, he was told someone else had already claimed it. 2,705 flood recovery applications worth a combined total of nearly $30 million are under review for possible fraud.
Aussies Scammed Over $200M So Far This Year – 6 June 2022
Between January 1 and May 1, Australians lost over $205 million to scams, a 166 per cent increase compared to the same period last year, according to new data from Scamwatch. Dodgy investment scams make up $158 million of the $205 million, and jumping by 314 per cent year-on-year. Of these, $113 million are crypto investments.
https://www.channelnews.com.au/aussies-scammed-over-200m-so-far-this-year/
Why are so many big tech whistleblowers women? Here is what the research shows – 6 June 2022
A computer scientist and a sociologist, explore the nature of big tech whistleblowing, the influence of gender, and the implications for technology’s role in society. The intriguing results are detailed in this article.
Former policeman who beefed up resume with ‘inexplicable’ lies avoids jail – 8 June 2022
Peter Ravenscroft , a former detective has managed to avoid jail despite lying on his resume to con Frankston local council into paying him $456,038 over 2 years and then tricking Victoria’s public watchdog into giving him a job paying $196,857.
Guilty plea to market manipulation following ASIC investigation into online ‘pump and dump’ posts – 8 June 2022
Using social media to coordinate ‘pump and dump’ activity in listed stocks is an offence under the Corporations Act 2001 (Cth). Article explains, how ASIC continues to take action against this form of ‘market manipulation’.
Albanese government promises national corruption watchdog will have power to investigate pork-barrelling – 8 June 2022
Mark Dreyfus has confirmed Labor’s national integrity commission will have the power to investigate pork-barrelling as well as “serious and systemic” past corruption allegations. Pork barreling is in reference to the utilisation of government funds for projects designed to please voters or legislators and win vote.
Google to act on scam ads for financial services – 9 June 2022
Tech giant Google, says it will allow advertising only from financial services providers that have been externally verified, in an effort to crack down on scam ads.
(Access to digital version of AFR required to read article.)
Forex Capital Trading liquidators hoping to claw back cash for investors from Gibraltar – 10 June 2022
Liquidators are hoping to claw back cash for “vulnerable” Australians who lost tens of millions with a trading company Forex Capital Trading (ForexCT). There is speculation that ‘Invesus’ is their parent company and therefore liable but because they are located in Gilbratar, this will be difficult. Gibraltar is known for its tax benefits for overseas companies.
https://www.abc.net.au/news/2022-06-10/forexct-invesus-fti-consulting-compensation-losses/101130282
Former CSIRO executive Mark Wallis jailed for two years after defrauding government of $300,000 – 10 June 2022
Mark Wallis, a former Senior Officer from the CSIRO, has been sentenced to two years in jail for fraud. He spent more than $300,000 of the agency’s money on items including a washing machine, a jet ski and two cars.
Investigation & Fraud News – Week ending 4 June 2022
10 stories this week:
Whistleblowers’ and journalists’ sources protected under ‘shield laws’ passed in Queensland – 26 May 2022
The identity of whistleblowers’ and journalists’ confidential sources will be protected under new ‘shield’ laws passed in Queensland. The laws will prevent journalists having to disclose information if doing so will reveal the identity of a confidential informant.
Elon Musk reacts to deepfake video of him promoting crypto scam – 27 May 2022
CEO Elon Musk has reacted to a viral video of him promoting a crypto scam, saying “Yikes not me”. The video was made through deepfake, which uses artificial intelligence that manipulates faces and audio files. BitVex, a bogus trading platform, was responsible for the scam.
https://micky.com.au/elon-musk-reacts-to-deepfake-video-of-him-promoting-crypto-scam/
Businessman under ASIC investigation distributed intimate photo of ex-wife – 28 May 2022
Renato ‘Rennie’ De Maria is currently under investigation by ASIC. He pleaded guilty to circulating an intimate image of his ex-wife and a breach of a family violence intervention order.
The ‘SlumDoge Millionaire’ made it big with crypto. His fortune is now vanishing but he’s all in – 30 May 2022
Glauber Contessoto has become an online celebrity after his Dogecoin windfall, becoming known as the ‘Dogecoin Millionaire’ to his fans. John Reed Stark a lawyer in Washington DC, told four corners that he believes that crypto is one big Ponzi scheme and it facilitates crime. He says it has no underlying intrinsic value and the main reason that people invest in cryptocurrency is because they believe that there’s a greater fool out there.
https://www.abc.net.au/news/2022-05-30/cryptocurrency-four-corners-investigation/101092486
Crown hit with $80m fine over ‘clandestine, deliberate’ bank card scam – 30 May 2022
Crown Resorts has been hit with a record $80 million fine over its illegal practice of accepting Chinese bank cards at its Melbourne casino to fund gambling and disguising the transactions as hotel expenses.
Access to digital version of SMH required to read article
Star Entertainment Group not suitable to run Sydney casino, inquiry told – 31 May 2022
Several top executives have resigned over the course of an inquiry by the NSW gaming regulator, which has heard allegations of money laundering, fraud and criminal infiltration at the casino. It was established that Star Entertainment Group is “not suitable” to hold a licence for its Sydney casino.
Call to protect Aussies from crypto scams – 31 May 2022
A submission has been made to the new federal government calling for urgent cryptocurrency reforms. In 2021, the Australian Competition and Consumer Commission received more than 10,000 reports of crypto scams from consumers with losses totalling about $129 million.
https://www.aap.com.au/news/call-to-protect-aussies-from-crypto-scams/
Adelaide man charged over alleged property investment scam worth more than $6 million – 2 June 2022
An Adelaide man has been arrested for allegedly deceiving five people to invest large sums of money in properties that never existed.
https://www.abc.net.au/news/2022-06-02/man-charged-over-alleged-property-investment-scam/101119816
US lawyer Michael Avenatti jailed for four years for defrauding Stormy Daniels – 3 June 2022
Michael Avenatti, a US lawyer who represented adult film star Stormy Daniels, known for an alleged affair with Donald Trump, has been sentenced to four years in prison for defrauding his former client of $413,000 in book proceeds. He is convicted of wire fraud and aggravated identity theft.
WA man’s assets seized over laundering – 3 June 2022
A West Australian man has handed over $4 million in assets, including cash in bank accounts, an apartment and other property, after an international money laundering and tax fraud investigation by the Australian Federal Police. Suspicious international banking activity and large fund transfers brought about the investigation.
https://www.macarthuradvertiser.com.au/story/7765704/wa-mans-assets-seized-over-laundering/?cs=12
Investigation & Fraud News – Week ending 27 May 2022
10 stories this week:
Accountant charged over alleged tax-related frauds – Financial Crimes Squad – 20 May 2022
An accountant and registered tax agent will face court for alleged tax-related frauds totalling almost $600,000. It is alleged that the man submitted fraudulent tax returns which had been altered without his clients’ knowledge in order to obtain a financial benefit. It is further alleged that he made a number of fraudulent applications to the COVID-19 JobKeeper Payment scheme on behalf of clients without their knowledge.
Astrophotographer faces charges for stealing $23K from photo association – 20 May 2022
Mark Culley, a photographer from Queensland has been charged with fraud and theft of $23,000 after using Photoshop to fake legal bank statements while being the President and Treasurer of the Professional Photographers’ Association of Queensland (PPAQ).
NSW teacher loses $500k to elaborate scam two months in the makin – 20 May 2022
A family from NSW found a website offering bonds affiliated with ANZ called Capel Court, with an Australian Business Number. Authenticity was even double-checked with ASIC. The problem is there really is a Capel Court bonds company that ANZ owns – but this wasn’t it. The scammers had stolen the company’s credentials and pretended to be them.
Fraud alert! AI identifies the four stages of a scam phone call – 21 May 2022
Australian researchers have used machine-learning techniques to identify the typical four stages of fraudulent money-taking phone calls. It is said to be one of the only studies to unpack the content of scam calls and the psychological tricks used by attackers in depth.
https://thenewdaily.com.au/finance/consumer/2022/05/21/the-four-stages-of-a-scam-call/
Advisers urged to treat unsolicited green bond investment opportunities with caution – 23 May 2022
The corporate regulator warned of scammers offering fake green bonds by representing themselves as well-known financial services firms. High in demand, ‘Green bonds’ are used to finance new and existing projects that offer climate change and environmental benefits – that are not directly available to the general public or retail investors.
The most common online scams in Australia – 23 May 2022
The ACCC reported that Australian citizens lost a record $851 million to scams during the pandemic, and these huge losses show no signs of abating. But we can work together to be more scam aware, and there are things you can do to prevent yourself from falling victim to a scam. The article provides breakdown of the most common online scams in Australia and how to can avoid them.
https://securitybrief.com.au/story/the-most-common-online-scams-in-australia
Steven Rootsey in Batemans Bay court for dealing with proceeds of puppy scam – 24 May 2022
Steven Rootsey has been convicted of dealing with nearly $50,000 swindled through an online puppy scam. He was asked to convert the stolen money into crypto currency by an unknown scammer for the benefit of keeping 10 percent for himself.
Employee fraud: recent developments in Australia – 25 May 2022
Article describes two recent cases of fraud in the workplace. One was a director from Deloitte who allegedly stole millions to pay for personal luxury items and another was an employee of Rentokil who falsified invoices and defrauded 3.2 million. Article also discusses how to mitigate the risk of employee fraud.
The inside story of the Aboriginal Community Benefit Fund collapse and the missing millions – 27 May 2022
Many had paid thousands of dollars to ACBF (Aboriginal Community Benefit Fund) over decades, after signing up to funeral insurance policies under the mistaken belief that it was a funeral savings fund owned and run by Aboriginal people. ASIC has confirmed it is investigating past and present directors for breaches of both the corporations act and the ASIC act.
Fraudster jailed after losing millions from his South Taranaki iwi – 27 May 2022
An Australia-based fraudster has brought shame as well as a loss of mana and trust to his iwi (Maori NZ Society) after the organisation lost more than $3 million in a series of sophisticated investments.
