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Investigation & Fraud News – Week ending 20 May 2022
12 stories this week:
Organised crime thrives because NSW cannot follow the money – 13 May 2022
Up until recent inquiries into The Star and Crown casinos, few people would have even thought that money laundering was a huge problem in Australia. Article explains how it is still an issue.
(Access to digital version of SMH required to read full article.)
Áustrac’s chief executive defends financial crime regulator after NSW Police Assistant Commissioner said watchdog was ‘not swinging hard enough’ – 13 May 2022
The CEO of the Australian Transaction Reports and Analysis Centre (AUSTRAC), Nicole Rose has rejected recent allegations that the agency has been too focused on banks. Recent actions by AUSTRAC against banks for anti-money laundering (AML) violations have resulted in record-breaking corporate penalties, such as the AU$700M fine against Commonwealth Bank in 2017 and the AU$1.3BN fine against Westpac in 2019.
https://www.amlintelligence.com/2022/05/austracs-chief-executive-defends-financial-crime-regulator/
Access to digital version of AML Intelligence site required to read full article
Australia’s treatment of whistleblowers will be its damnation – 13 May 2022
Article provides examples of how whistleblowers have been treated worldwide. The way Witness K and his barrister Bernard Collary have been the subject of Australian Govt. legal proceedings over the leaking of information to the East Timorese Government of secret recordings made by the Australian Secret Intelligence Service (ASIS), sends a message to the world that our great democracies intend on continuing to deceive and cover up.
https://thewest.com.au/politics/judge-rules-spying-lawfulness-not-relevant-c-6815732
Papas’ girlfriend denies knowledge of alleged scam – 13 May 2022
The girlfriend of alleged Forum fraudster Bill Papas has denied any knowledge of the alleged scam that saw Westpac and other banks bilked out of almost $500 million.
https://www.mpamag.com/au/news/general/papas-girlfriend-denies-knowledge-of-alleged-scam/405792
Bitcoin runaway Peter Foster gets bail despite six-month disappearance – 13 May 2022
Peter Foster, the self-described “man of mischief” and now alleged fraudster, has been released on bail from prison despite not turning up to court last year and going on the run for six months.
(Access to digital version of SMH required to read full article.)
Jeremiah Deakin sentenced to two and a half years in jail for deceiving former sex client into paying him $718,000 – 16 May 2022
Jeremiah Deakin pleaded guilty to posing as a female ASIO officer as part of an elaborate scam to obtain money from a former sex client. He has been sentenced to nearly two and a half years in jail by the ACT Supreme Court.
FSC calls for ban on scam ads on Facebook, Google – 16 May 2022
The Financial Services Council has called for a mandatory code of conduct to regulate advertising via technology giants Google and Facebook and better protect the public from financial scams.
NSW couple loses $500k to highly sophisticated scam – 16 May 2022
A New South Wales couple has lost half a million dollars to a highly sophisticated scam, thinking they were investing in a legitimate finance company. The scammers were allegedly using ANZ Capel Court ABN number and financial services’ licence.
Prominent Sydney corporate lawyer set to be grilled by Ponzi scheme investigators – 18 May 2022
A leading Australian corporate lawyer John Landerer is set to be grilled in court alongside casino giants Crown and The Star, over their alleged links to one of Australia’s biggest Ponzi schemes.
(Access to digital version of SMH required to read full article.)
Melissa Caddick’s husband Anthony Koletti hands couple’s mansion to receivers – 19 May 2022
The husband of Sydney fraudster Melissa Caddick has officially vacated the couple’s luxury mansion in eastern Sydney. Despite being forced to vacate his home, Mr Koletti is fighting for a cut of the sale, along with duped investors. The property with views of the Sydney Opera House is said to be worth between $15-$17 million.
https://www.abc.net.au/news/2022-05-19/melissa-caddick-husband-leaves-mansion-to-recievers/101080638
Court slaps manager with six-figure penalty for compensation fraud – 19 May 2022
A Victorian court had recently ruled that a Melbourne-based business manager must pay back $100,000 in overpayments after the court found that he defrauded the state’s workers’ compensation scheme.
Melbourne woman sentenced to time served for ‘brazen’ identity theft bank scam – 19 May 2022
Kristel Galvin-Samie from Melbourne, used wigs and sunglasses to hoodwink some of Australia’s biggest banks into giving her more than $260,000 belonging to other customers, has walked free from court. She was ordered to pay a $5,000 fine and complete a community corrections order.
Investigation & Fraud News – Week ending 13 May 2022
12 stories this week:
Tax Office To Investigate 40,000 Australians Over Fake Business Scam – 6 May 2022
The Australian Taxation Office is cracking down on an $850 million fraud being spruiked on social media that involves people inventing fake businesses to claim GST refunds. It involves offenders setting up sham businesses and ABN applications, then submitting fictional Business Activity Statements to get a false GST refund.
Screen-sharing scams on the rise, watchdog warns – 6 May 2022
The Financial Conduct Authority (FCA) is warning people to beware of people posing as investment advisers and offering to help them set up new schemes via online meeting platforms. They ask their victim to share the screen and enable remote access – which hands over control of their device and, potentially their bank account.
Employee monitoring software became the new normal during COVID-19. It seems workers are stuck with it – 6 May 2022
During the pandemic employee monitoring software, became the new normal, logging keystrokes and mouse movement, capturing screenshots, tracking location, and even activating webcams and microphones. Now the software is here to stay, even in the office. Furthermore, there’s no consistent set of laws operating across jurisdictions in Australia that regulate surveillance of the workplace.
Whistleblowers claim Facebook’s chaotic Australia news ban was a negotiating tactic – 6 May 2022
Former employees, backed by the Whistleblower Aid charity, claim Facebook purposefully “over-blocked” Australian pages during a critical ‘fire” period in order to gain leverage over the Australian government. Complaints filed with Australia’s Competition & Consumer Commission and the US Department of Justice, allege that the company engaged in “a criminal conspiracy to obtain a thing of value, namely favorable regulatory treatment”.
Hotel scams: What travellers need to look out for when booking online – 7 May 2022
There is a rise in scammers sending emails pretending to come from hoteliers and travel companies, directing holiday makers to fake COVID verification sites, that are there to steal their information and infect their computer. Scams often seek to get personal information such as birthdays, bank details, or other valuable confidential data. Unfortunately, many of these details are required when booking flights and hotels, making the travel industry a prime target for data breaches.
Public Interest Disclosures: Compensation for whistleblowers – 7 May 2022
Article outlines what a public interest disclosure is, who can make a public interest disclosures and what compensation there is for detrimental action taken against whistleblowers.
Corporate chicanery unveiled, Ice Hockey Australia supremo gets iced – 8 May 2022
Grove Bennet, a bankrupt and failed pyramid schemer’s management of Australian ice hockey has come to a fast finish because of an investigation in Michael West Media. Amongst other allegations it has been recorded that monetary data offered by Bennett was ‘misleading’, ‘false’ and ‘negligently misrepresented’.
https://michaelwest.com.au/corporate-chicanery-unveiled-ice-hockey-australia-supremo-gets-iced/
‘PC insanity’: How to handle misconduct investigations in the workplace – 10 May 2022
Article discusses some of the common mistakes made by employers when dealing with workplace misconduct. It states that allegations needs to demonstrate that the conclusions were properly reached, have regard to all of the evidence, and that there’s an explanation as to why decisions were made.
Australian ‘Casanova Conman’ sentenced in visa fraud case – 11 May 2022
An Australian national (Paul Cristallo known as Paul Carter) has been repeatedly accused of swindling women, including allegedly defrauding his mother, was sentenced to eight months after pleading guilty to visa fraud. Carter allegedly posed as a multimillionaire developer and would woo women into turning over to him control of their financial assets.
https://www.timesunion.com/news/article/Australian-Casanova-Conman-sentenced-in-visa-17165286.php
‘It pays to do your homework’: ASIC urges Australians to seek out licensed advisers – 12 May 2022
The corporate regulator has urged Australians who are seeking financial advice, to only connect with licenced professionals ensuring the adviser is both qualified and licensed, or authorised, to do the job.
Portland doctor Abraham Stephanson admits to defrauding $792k from patients – 11 May 2022
Abraham Stephanson who was a Portland doctor has pleaded guilty to deception charges after defrauding 19 people out of almost $800,000 to support his gambling addiction and pay of his own mortgage. Stephanson used the guise of his father’s diagnosis of terminal cancer to defraud his victims.
Organised crime rampant across Australia, secret briefings reveal – 13 May 2022
Organised crime is running rampant across Australia and agencies are struggling to fight it, according to secret briefings given to cabinet ministers and senior public servants, by the highest-ranking organised crime fighter in NSW. Police Assistant Commissioner Stuart Smith says the fight against organised crime was hampered by the lacklustre approach of the nation’s financial crime agency Australian Transaction Reports and Analysis Centre (AUSTRAC)
Investigation & Fraud News – Week ending 6 May 2022
13 stories this week:
Melbourne widow loses husband’s $760k life insurance payout to scammers – 29 April 2022
A widow lost her insurance payout to a scam. The scammers used Amazon Cloud Frontage which bypassed security measures, allowing them to appear on the first page of a Google web search for “Macquarie Bank term deposit”. The fraudsters were offering a 2.5 per cent rate under the guise of Macquarie Bank which was better than every other bank.
Is it legal for employers to monitor employees using surveillance devices? – 29 April 2022
Article outlines that there’s no general ‘Right to privacy in Australia’ and it is legal for your boss to monitor and track your work-related tasks and performance while at work; whether working from home or on site. However, there’s a complicated web of federal, state and territory laws. Employee monitoring is also subject to these laws and the various rules that regulate surveillance of employees can be very complicated.
Alpaca scammers target would-be buyers online – 29 April 2022
Scammers are now targeting people who are looking to buy alpacas. One victim lost $500 to a scam after putting a deposit down. Serious buyers needed to look out for a reputable breeder to avoid such problems.
https://www.abc.net.au/news/2022-04-29/scammers-target-would-be-alpaca-owners-online/101026350
9 people nabbed for offering non-existent jobs in Australia – 29 April 2022
The federal commercial crime investigation department director said a crime syndicate used social media to advertise job offers in Australia, and a website to guide the victims to apply for a work visa abroad. Victims were charged A$420 for processing (visa applications) and the syndicate would send them a screenshot showing the application document, as well as a copy of the fake document, using the Australian Government Department of Home Affairs letterhead.
How does identity theft protection work? Stop would-be scammers fast – 2 May 2022
Online scamming has led to a significant increase in identity theft. So reputable companies have stepped forward to offer identity theft protection services. Article looks at the eight types of identity theft and pros and cons of these protection services.
Aspen Medical was given more than $1 billion in government PPE contracts despite no experience in large-scale procurement – 2 May 2022
Aspen Medical had no prior experience in large-scale procurement of medical products before it was picked for a $1 billion PPE contract by the government. A Four Corners investigation, in collaboration with Colombo’s Sunday Times, claims that Aspen Medical has been embroiled in an international criminal probe into corruption and money laundering.?
https://www.abc.net.au/news/2022-05-02/aspen-medical-greg-hunt-four-corners/101022086
Former tennis champion Boris Becker jailed in UK bankruptcy case – 30 April 2022
A London court has sentenced German tennis great Boris Becker to jail for two years and six months for hiding hundreds of thousands of pounds of assets, after he was declared bankrupt. He was found guilty of transferring money to his ex-wife, Barbara, and estranged wife, Sharlely “Lilly” Kerssenberg, after his 2017 bankruptcy.
Secret phone taps of ATO deputy commissioner’s son – discussing alleged multi-million-dollar tax fraud – 1 May 2022
Five people have pleaded not guilty over an alleged $105 million tax fraud. The alleged scheme involved the accused parties, ripping off the government, by keeping more than $100 million in GST and Pay As You Go (PAYG) tax, that was meant for the ATO. The jury was played a series of secretly recorded phone calls. The trial is expected to run for six months.
On World Press Freedom Day, will Australia’s major parties pledge to fix our whistleblowing law? – 4 May 2022
Despite the accountability and change their whistleblowing has helped achieve, Richard Boyle, David McBride and Bernard Collaery all face potential jail time for speaking up about serious wrongdoing. Article reflects on their plight – and the government’s responsibility.
Qantas loses appeal on ‘illegally’ outsourcing jobs, with compensation and penalties awaiting – 4 May 2022
Qantas has lost its appeal against a Federal Court decision that found the outsourcing of about 2,000 ground crew workers was illegal and in in breach of the Fair Work Act. Qantas argues the move to outsource staff was always in response to the pandemic and will appeal in the High Court.
Dr Roger Munro sentenced to four and half years jail for fraud following ASIC investigation – 4 May 2022
ASIC’s investigation found Dr Munro received $299,600 from three investors after he had invited them to invest in his trading scheme, TradeStation Futures Trading Fund (TradeStation). Rather than investing those funds in TradeStation, Dr Munro dishonestly applied the funds to pay for personal expenses, make cash withdrawals, make payments to other investors and transferring funds into a trading account held in the name of Dr Munro’s wife.
https://www.miragenews.com/dr-roger-munro-sentenced-to-four-and-half-years-775265/
Crackdown sees more than half a billion scam calls blocked – 4 May 2022
Initiatives by Telcos and the ACMA have led to a 95 per cent reduction in reports of mobile porting fraud and more than 549 million scam phone calls being blocked.
Senior police officer under investigation following allegations of aiding and abetting criminals – 5 May 2022
IBAC is holding public hearings into allegations Detective Sergeant Wayne Dean took cash payments from a debt collector for pressuring debtors to pay up. The Melbourne Police officer also struggled to explain how he came to have $18,000 in cash stashed in a safe at his home.
Federal judge quits after investigation – 5 May 2022
A federal judge will leave the bench next week after only a year’s service following an investigation into his conduct.
(Accesss to digital version of AFR required to read article.)
Investigation & Fraud News – Week ending 29 April 2022
12 stories this week:
Trump wall funder pleads guilty to fraud – 22 April 2022
A US Air Force veteran who helped lead a fundraising campaign to build former president Donald Trump’s promised wall, along the US-Mexican border, has pleaded guilty to conspiring to defraud donors of more than $US350,000. He spent the money on a boat, a luxury SUV, a golf cart, jewellery and cosmetic surgery.
https://www.illawarramercury.com.au/story/7708559/trump-wall-funder-pleads-guilty-to-fraud/?cs=7484
The Butchers from Brazil: The corporate colossus devouring Australia’s food business – 22 April 2022
Australia’s biggest meat company JBS is repeatedly failing to protect its workers from horrific injuries
JBS is the corporate food giant that controls huge amounts of the meat we eat, owning brands from Coles and Woolworths to Aldi. Four Corners investigates this company who is accused for bribery and corruption in Brazil, corruption and sourcing meat from illegally deforested land in the Amazon rainforest. In Australia, they seem to be encouraged and supported and remain untouched.
Warwick Ranclaud suffered burns to 90 per cent of his body during a fire at a JBS facility in NSW. JBS Australia has an appalling track record in the workplace, repeatedly failing to protect its workers from death or serious injuries. They pleaded guilty to exposing its workers to a risk of death or serious injury and were convicted in November 2020.
https://www.abc.net.au/4corners/the-butchers-from-brazil:-the-corporate-colossus/13853830
https://www.abc.net.au/news/2022-04-26/jbs-meat-company-worker-safety-four-corners/101012734
SA teacher loses her $43k life savings in ‘sophisticated’ phone scam – 22 April 2022
A SA Teacher fell victim to a SIM swap hack, where a cyber-criminal had remotely gained control of her phone by impersonating her to her telco provider, Optus, and asking for an eSIM card. Australian Communications and Media Authority (ACMA) will soon require telco companies to use multi-factor authentication before completing a “high-risk transaction” like a SIM swap otherwise they will face legal action.
Australia’s Westpac Banking Fined A$113M for Multiple Compliance Breaches – 22 April 2022
An Australian court ordered Westpac Banking Corp. to pay A$113 million ($82.92 million) in penalties for multiple compliance failures across its businesses, after hearing the last of the six cases filed against it by the country’s corporate watchdog.
https://www.insurancejournal.com/news/international/2022/04/22/664243.htm
Australian banks are repaying 6.5 million customers billions of dollars in junk insurance refunds – 24 April 2022
6.5 million Australian adults have been sold junk insurance by banks, the banking Royal Commission revealed. The Royal Commission ordered financial institutions to set aside $10 billion for refunds, with customers now coming to collect.
Australia’s overheated property market has become a target for hackers – and they’re scamming millions – 24 April 2022
Property settlement scams are becoming more common, as scammers turn their focus to the large and often lightly protected sums of money, that prospective buyers are transferring to the trust accounts of real estate agents and conveyancers. Poor cybersecurity, as well as the failure of banks to verify account names, has made Australia a target, experts say.
Cyber ecosystem nurtures Aussie security start-up – 25 April 2022
According to Crime Stoppers NSW CEO, Peter Price AM, Australia is emerging as a world leader in tackling cybercrime, thanks to more university educated cyber security professionals and a better understanding by business and government of the risks.
https://www.afr.com/technology/cyber-ecosystem-nurtures-aussie-security-start-up-20220404-p5aaq6
AUSTRAC issue financial crime guide – 26 April 2022
In line with AUSTRAC issuing a “financial crime guide” last week, the government’s financial intelligence agency wants banks to adopt more rigorous processes to monitor customers, who may be using cryptocurrencies to facilitate serious crime and to report any suspicious activity.
(Access to digital version of AFR required to read this article.)
Former employee pleads guilty to defrauding Darwin construction business of nearly $90,000 – 26 April 2022
Kristy Gall unlawfully obtained a total of $88,273 from her former employer over four years. The fraud was discovered after unauthorised expenses were identified on a credit card issued to her.
Fee-free Plutus Payroll services ‘too good to be true’, jury told – 27 April 2022
A court has heard that the alleged co-conspirators behind a multimillion-dollar tax fraud scheme, offered fee-free payroll services that were too good to be true and voluntarily liquidated bottom-tier companies to put the Tax Office off the scent.
(Access to digital version of SMH required to read article.)
Federal government receives open letter from 125 organisations, urging help for Youpla funeral insurance victims – 27 April 2022
125 organisations have written an open letter to the federal government, urging compensation for victims of the Youpla (ACBF) funeral insurance scheme collapse. Youpla first came under the microscope during the Banking Royal Commission, where it was revealed it had falsely marketed itself as Indigenous-owned.
https://www.abc.net.au/news/2022-04-27/youpla-acbf-open-letter-2022-funeral-insurance/101019370
Serious Fraud Office visits Whyalla steelworkers owner GFG Alliance offices in UK in fraud, money laundering investigation – 28 April 2022
Properties linked to British billionaire Sanjeev Gupta’s GFG Alliance – the owner of Whyalla’s steelworks – have been searched overnight by officers from the UK’s Serious Fraud Office. The Serious Fraud Office launched an investigation into fraud, fraudulent trading and money laundering at the company last year.
