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Investigation & Fraud News – Week ending 22 April 2022
15 stories this week:
Aussie watchdog forces major telcos to act on mobile scam – 8 April 2022
Telstra and Optus will soon be forced to crack down on a vicious scam targeting innocent mobile phone users in Australia. Under new The Australian Communications and Media Authority rules, telcos will be required to perform stronger customer identity checks when undertaking “high-risk” transactions such as new sim requests, changes to accounts or disclosure of personal information.
Schools chaplaincy provider bans cohabitation and ‘sexually intrusive’ behaviour in staff’s private life – 9 April 2022
A whistleblower has alleged Australia’s second biggest schools chaplaincy provider imposes a code that discriminates against staff based on relationship status and sexual conduct.
Police seize almost $5m in cash, drugs and cryptocurrency teller machines in Sydney – 10 April 2022
Police have seized, three cryptocurrency teller machines, five kilograms of illicit drugs and 4.7 million in Sydney’s south-east, as part of a multi-agency operation involving the US Department of Homeland Security. The three charged are alleged members of an international organised crime group.
Financial Fraud and Regulating Google and Facebook – 11 April 2022
Misinformation about investment products, have been costing Australians millions of dollars. The result of the ACCC v Meta inquiry could provide greater legal clarity on the duties of digital platforms absent legislation, when it comes to fraudulent advertisements published on their platforms. The inquiry is set to provide an interim report to the Treasurer by 30 September 2022.
https://www.miragenews.com/financial-fraud-and-regulating-google-and-762043/
Australians to Avoid $120 Million Loss With Automatic Anti-Scam System: Westpac Bank – 11 April 2022
A new banking system will help thousands of Australians save an estimated $120 million (US$89.3 million) annually by stopping scam transactions from fraudulent overseas sellers. Customers will have their credit and debit card transactions to overseas retailers automatically blocked if a scam is detected.
https://7news.com.au/business/banking/auto-scam-block-to-save-aussies-120m-c-6404765
Centrelink scammers target flood-hit residents in northern NSW – 12 April 2022
Scammers have obtained Centrelink customer identities and used their mailing addresses in flood-affected parts of New South Wales, to claim flood relief payments.
https://www.abc.net.au/news/2022-04-12/identity-theft-nsw-flood-relief-centrelink-fraud/100969438
Accountant jailed over $390k tax fraud – 13 April 2022
A Victorian accountant, Immanuel Shmuel has been sent to jail over fraudulent BAS statements. He was convicted of attempting to obtain a financial advantage of more than $390,000 by amending his business activity statements to reduce his existing debt and receive a refund.
https://www.accountantsdaily.com.au/tax-compliance/16890-accountant-jailed-over-390-000-tax-fraud
US man jailed for breaching sanctions by advising North Korea on cryptocurrency – 13 April 2022
Virgil Griffith, a United States man has been sentenced to more than five years in federal prison for advising North Korea on how to use cryptocurrency trading, to evade sanctions.
https://www.abc.net.au/news/2022-04-13/cryptocurrency-expert-jailed-north-korea-sanctions/100989350
A fugitive Chinese billionaire claims this cryptocurrency will overthrow Beijing. Experts say it has the ‘hallmarks of a scam’ – 18 April 2022
An ABC investigation, through analysing financial documents, private chat rooms and blockchain wallets, has unravelled a sophisticated cryptocurrency operation. The scheme has raised alarm bells for financial crime and cryptocurrency experts, who said it had the hallmarks of a scam. Guo Wengui believes HCoin, would be instrumental to their revolution and would replace the Chinese currency. The ABC asked several cryptocurrency and financial crime experts to analyse the trading platform Himalaya Exchange and HCoin. They concluded both raised red flags.
https://www.abc.net.au/news/2022-04-18/guo-wengui-steve-bannon-back-hcoin-cryptocurrency/100991522
Jeremiah Deakin asks to be jailed after pleading guilty to deceiving former sex client into paying him $718,000 – 19 April 2022
Jeremiah Deakin, admitted to defrauding a man he met online for sex and pretending to be a female spy. The victim paid $718,000 over two years, which Deakin used to fund his ice and gambling addictions.
Husband of Melissa Caddick stakes claim to a share of the millions she owned in property, luxury cars and jewellery – 19 April 2022
Melissa Caddick’s husband, Anthony Koletti is trying to claw back some of the millions in property, cars, jewellery and designer clothes owned by the Sydney fraudster. He submitted that his financial contribution to the household meant he was entitled to a share of the assets. Ms Caddick’s assets are being sold off to repay some of the $23 million, she stole from investors.
Big names (and an economist) in sacked Deloitte director’s haul – 20 April 2022
It took Deloitte less than a month to conclude its action against former director Paul Quill. He’s agreed to repay $3.1 million to the firm, hopefully from the proceeds of the artworks, furniture, fine watches and the like his old employer claims he purchased with fraudulent expense claims.
(Access to digital version of AFR required to read article.)
AUSTRAC works with businesses to target ransomware and criminal use of digital currencies – 22 April 2022
AUSTRAC has released two new financial crime guides to help businesses, stop ransomware attack payments and the criminal abuse of digital currencies. The guides contain practical information and indicators to help businesses identify and report if a payment could be related to ransomware attacks, or someone could be using digital currencies to commit serious crimes such as money laundering, scams, or terrorism financing
‘No apparent logical reason’ why former CSIRO executive Mark Wallis defrauded government of $300,000 – 22 April 2022
The ACT Supreme Court has heard there was no obvious explanation for why Mark Wallis, a former CSIRO executive spent more than $300,000 of government money on cars, a jet ski and a gym membership. Mark Wallis has pleaded guilty and will be sentenced later in the year.
https://www.abc.net.au/news/2022-04-22/act-former-csiro-executive-fraud-supreme-court/101006806
Former Gold Coast rich-list developer Craig Gore caught conducting business while in jail on fraud charges – 22 April 2022
Disgraced Gold Coast rich-lister Craig Gore, has been sprung by corrections officers, virtually meeting employees and taking a digital tour of a building connected to a business he was illegally running from jail. He pleaded guilty and was fined $1,500
Investigation & Fraud News – Week ending 1 April 2022
12 stories this week:
Australia’s carbon credit scheme ‘largely a sham’, says whistleblower who tried to rein it in – 22 March 2022
Professor Andrew Macintosh who is an environmental law and policy expert at The Australian National University (ANU) says the system, which gives credits for projects such as regrowing native forests after clearing, is ‘a fraud’ on the environment, taxpayers and consumers. The allegations have been referred to the Commonwealth Auditor General for investigation.
Six charged over alleged cannabis cultivation and COVID-19 rental relief payment fraud – 24 March 2022
Detectives have charged six people – including three Real Estate Agents – following an investigation into the alleged use of rental properties for the cultivation of cannabis, and fraudulent acquisition of COVID-19 rental relief payments.
How technology is solving crimes – 24 March 2022
Thanks to advances in technology, solving crimes has come a long way. Advances range from sophisticated finger mark detection methods, to rapid in-field testing, for example, a portable forensics lab (‘lab-on-a-chip’), forensic genetic genealogy, and use of artificial intelligence in different aspects of the forensic work.
https://ia.acs.org.au/article/2022/how-technology-is-solving-crimes.html
Over 2m Aussies fall victim to scams and fraud – 24 March 2022
The Australian Bureau of Statistics (ABS) estimated 55 per cent of Aussies, or about 11.1 million people, had encountered a scam during the 2020-21 financial year, most commonly over the phone (38.3 per cent), via email (32.2 per cent), text message (23.4 per cent) or online (20.2 per cent).
https://www.nestegg.com.au/save-money/scams/over-2m-aussies-fall-victim-to-scams-and-fraud
The growing data privacy debate: is AI being used to undermine your privacy? – 24 March 2022
With data breaches on the rise, data privacy has become a key concern for many Australians, who are sceptical of the activities of businesses that collect, handle and share revealing information about their activities, interests and preferences. Without adequate AI regulation and data privacy laws and guidance, businesses are having to fill in the gaps.
Four-word Facebook messenger scam to ignore – 25 March 2022
Facebook Messenger users have been told to ignore four-letter messages from friends such as “Is this you in this video?” or “look what I found”. Clicking on these could lead to disastrous financial consequences or stolen personal information.
Whistleblower says Microsoft spent millions on bribes abroad (yahoo.com) – 26 March 2022
Former Microsoft manager Yasser Elabd, alleged that Microsoft fired him after he alerted leadership to a workplace where employees, subcontractors and government operators regularly engaged in bribery. He also claims that attempts to escalate his concerns, resulted in retaliation within Microsoft by managers, and eventual termination from his role.
Cryptocurrency scammers turn to deep fakes to snare victims – 27 March 2022
Cybersecurity and consumer experts say cryptocurrency scams are becoming increasingly sophisticated with scammers creating deep fakes of ordinary people. He said these deep fakes ?- which use artificial intelligence and machine learning to create fake videos and images ?- were more convincing when they centred on regular people.
Police close in on person who helped Papas leave the country – 27 March 2022
NSW Police are zeroing in on the person who supported alleged fraudster Bill Papas to leave the country in June 2021, as it continues its investigations into the Westpac and Forum Finance saga.
New ACCC chair Gina Cass-Gottlieb vows to target price gougers, plays down Murdoch family links – 28 March 2022
ACCC chair Gina Cass-Gottlieb has vowed to target petrol and food retailers who exploit anxiety from recent flood disasters, the pandemic and the Russian invasion of Ukraine to gouge prices.
https://www.abc.net.au/news/2022-03-28/accc-chair-gina-cass-gottlieb/100943878
Fake SMSF scammers pounce during COVID-19 – 29 March 2022
The Australian Taxation Office has said it is witnessing an increase in Self Managed Superannuation identity fraud, where crooks use tax professionals to register phony funds to win massive windfalls.
(Access to AFR required to access article..)
Manager tells inquiry of Star casino’s ‘concerning’ lies to Chinese bank – 30 March 2022
A Star casino manager has told a public inquiry about “serious” and “repeated” misrepresentations the company made to the Bank of China concerning the source of millions of dollars. Gambling is illegal in China and local banks often block transfers to foreign casinos. The inquiry, being run by the Independent Liquor and Gaming Authority (ILGA), heard about a subsidiary company set up by Star, called EEI Services Hong Kong, to assist Chinese customers in accessing money for gaming in Australia.
Investigation & Fraud News – Week ending 25 March 2022
15 stories this week:
Star senior manager ‘utterly misled’ bank over use of controversial credit cards at casino, inquiry told – 17 March 2022
An inquiry has been told that a senior manager at Star Entertainment Group “utterly misled” the National Australia Bank, about a controversial credit card used by high-rollers at the casino giant’s gambling venues. In 2019, a Chinese financial services company – became concerned that its cards were being used at Star venues to pay for large “suspicious” gambling transactions in breach of its rules, and passed on its concerns to NAB, with the bank then contacting the casino operator.
Surveillance Is a Huge Issue For Domestic Abuse Victims, So the Government Is Stepping In – 18 March 2022
Following a national survey by WESNET, which revealed that almost all women experiencing family violence suffered from technology abuse, the federal government will invest $104 million over the next five years into domestic violence funding.
https://thelatch.com.au/domestic-violence-australia-funding/
https://www.abc.net.au/news/2022-03-18/dv-survivors-spyware-hidden-camera/100919670
ATO flags cryptocurrency crackdown amid evasion concerns – 18 March 2022
Tax authorities will tighten scrutiny of cryptocurrencies in a bid to ensure users are accurately reporting gains and identify whether it is being used as an investment or for business purposes. The clampdown comes amid regulatory concerns that many taxpayers believe cryptocurrency operates in an anonymous digital world, or that gains are tax-free, or only taxable when holdings are cashed back into Australian dollars. ATO will also target investors correctly calculating costs such as brokerage fees, transfer and platform costs, borrowing expenses, interest on loans, and legal fees.
ACCC takes Facebook owner to court over fake cryptocurrency ads – 18 March 2022
The AC has launched a world-leading legal case against Facebook owner Meta, for publishing scam cryptocurrency ads featuring well-known Australians. The ACCC alleges this conduct is in breach of the Australian Consumer Law or the Australian Securities and Investments Commission Act.
Fraudulent GST refunds land NSW man in jail – 18 March 2022
A New South Wales man has been sentenced after obtaining more than $171,000 in fraudulent GST refunds. In addition to his criminal conviction for tax fraud, he was also ordered to repay the full amount in reparations.
https://www.nationaltribune.com.au/fraudulent-gst-refunds-land-nsw-man-in-jail/
Stolen Bitcoin, fake personas and a trip to Ukraine: Inside the case against crypto heist couple Heather Morgan and Ilya Lichtenstein – 19 March 2022
Social influencer, writer, entrepreneur and amateur rapper Heather Morgan and her husband Ilya Lichtenstein, a Russian-American tech entrepreneur, face up to 25 years in jail if found guilty of conspiring to launder stolen Bitcoin worth billions of dollars.
Mining sector sexual misconduct: FIFO sexual harassment whistleblowers tell shocking allegations to 60 Minutes – 19 March 2022
A married mother of two, who made particularly disturbing allegations of persistent sexual harassment in the mining industry to a parliamentary inquiry, is continuing her whistleblower campaign, fronting cameras to tell her story.
Former Apple employee, charged with fraud amounting to $13.47 million, has finances frozen, five properties seized – 20 March 2022
Dhirendra Prasad, a former Apple employee has been charged with defrauding the tech giant out of more than $US10 million ($13.47 million) by taking kickbacks, stealing equipment and laundering money. The federal government has seized five real estate properties and financial accounts worth about $US5 million from Mr Prasad, and will seek to keep those assets as proceeds of crime.
https://www.abc.net.au/news/2022-03-20/man-charged-defraud-apple-10m-dollars/100924870
Former Kleenmaid director sentenced for fraud and insolvent trading – 21 March 2022
On 18 March 2022, a former Kleenmaid director Andrew Eric Young, pleaded guilty to one count of aggravated fraud by dishonestly causing $330,000 to be withdrawn from a Kleenmaid company bank account, two days prior to administrators being appointed. Mr Young transferred the funds to a bank account held by a company, in which he held an interest and from which he and his wife would benefit.
https://www.abc.net.au/news/2022-03-20/man-charged-defraud-apple-10m-dollars/100924870
Australian judge accuses UN of ‘coup d’etat’ after dismissal from case involving Chinese dissidents – 21 March 2022
Australian judge Rowan Downing, QC, has accused the United Nations of an “attack upon the independence of the judiciary” and a coup d’etat after he was removed from the case of a whistleblower (Emma Reily) who had accused the global body of passing on information to Beijing about Chinese dissidents.
(Access to digital version of SMH required to read article.)
At the heart of all fraud lies deceit: building a profile of a corporate fraudster – 21 March 2022
Dean Mitchell from KPGM, provides some insights on white collar fraud and the people who commit it. He touches on patterns of behaviours and claims corporate fraudsters, according to forensic psychologists, go out of their way to refine their techniques, to avoid past mistakes and maximise what they can get away with.
https://newsroom.kpmg.com.au/heart-fraud-lies-deceit-building-profile-corporate-fraudster/
Alexei Navalny – jailed Russian Opposition Leader and vocal Putin critic – found guilty of fraud – 22 March 2022
A Russian court has found jailed Kremlin critic Alexei Navalny guilty of large-scale fraud and sentenced him to nine years in a maximum-security prison, with police detaining both of his lawyers immediately after the hearing. Navalny is one of the most prominent critics of Russian President Vladimir Putin and has dismissed the criminal case brought against him as politically motivated.
Craig Thomson, accused of AVO breach and facing fraud charges, granted bail – 23 March 2022
Former federal Labor MP Craig Thomson has been granted strict bail after spending the night in custody on the NSW Central Coast, accused of fraud offences and breaching an apprehended violence order. Police alleged he made two fake COVID-19 business grant applications, dating back two years, totalling $25,000.
https://www.abc.net.au/news/2022-03-23/craig-thomson-gets-bail-after-alleged-avo-breach/100933914
Erskine resident warns others after almost losing $300,000 to investment scam – 22 March 2022
A 73-year-old Erskine resident was almost left $300,000 out of pocket after he was targeted by an investment scam. The Australian Competition and Consumer Commission reported people lost over $27,000 to investment scams just in February, 2022. Article reminds readers to check if a financial advisor is registered via the ASIC website and check ASIC’s list of companies you should not deal with.
ASIC financial influencer crackdown targets unlicensed financial advice – 23 March 2022
The financial watchdog has put social media finance influencers on notice, with the ASIC financial influencer crackdown threatening up to five years’ jail and $1 million-plus fines for ‘influencers’ giving out financial advice without a licence.
https://www.channelnews.com.au/asic-targets-finfluencers-who-put-investors-at-risk/
Investigation & Fraud News – Week ending 18 March 2022
11 stories this week:
Unfair practices law needed to improve consumer protection, says outgoing ACCC chair Rod Sims – 4 March 2022
Ex ACCC chair, Rod Sims has said Australia needs a law banning “unfair practices”. He said such a law could help protect consumers from having their own data used against them. He mentioned practices such as false scarcity reminders such as low-stock warnings, false sales countdown timers, targeted advertising utilising consumers’ own data to exploit their individual characteristics, pre-selected add-ons and design interfaces that discourage unsubscribing.
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NSW man arrested after 2 women lost $20k – 11 March 2022
A western Sydney man has been arrested after two women were defrauded and lost savings totalling almost $20,000. NSW Police will allege in court, the man posed as an employee of a financial institution and called the women, telling them their accounts had been hacked. He then allegedly when to their homes before taking their money.
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Scamwatch: It can be hard to say no to a cute puppy but don’t rush in and fall for a scam – 11 March 2022
Australian Community Media has compiled a list of current scams identified on sites such as scamwatch.gov.au, cyber.gov.au and the Australian Competition and Consumer Commission’s website, dedicated to informing people about fraudulent and dishonest activities. This article summarises what to look out for.
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Crown v Shannon: bigwigs off the hook, small fish fried – 14 March 2022
Michael West reports on the world of deluxe double standards. For example, ASIC would NOT be pursuing Crown directors for breaching their duties. Yet ASIC is still pursuing the bank victims advocate, Geoff Shannon of the website Unhappy Banking, even trying to drag him off his hospital bed after spinal surgery to force him to face charges in another state.
https://www.michaelwest.com.au/crown-v-shannon-bigwigs-off-the-hook-small-fish-fried/
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Former Wirecard chief executive charged with fraud – 14 March 2022
Wirecard’s former chief executive Markus Braun has been formally charged by Munich public prosecutors with fraud, breach of trust and accounting manipulation after a 21-month criminal investigation into the collapse of the German payments group.
https://www.ft.com/content/c0bcaaab-546a-4e37-861e-2a29f28e1998
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Fake heiress Anna Sorokin makes new bid to fight deportation – 15 March 2022
Anna Sorokin, the convicted swindler who claimed to be a German heiress to finance a posh lifestyle in New York, is making a new bid to fight deportation. She scammed New York’s elite, hotels and banks out of hundreds of thousands of dollars.
https://www.abc.net.au/news/2022-03-16/anna-sorokin-attempts-to-fight-deportation/100914092
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Mount Gambier MP Troy Bell to face trial on theft charges after losing High Court appeal – 15 March 2022
South Australian Independent MP Troy Bell will face trial in October accused of misappropriating public funds, after he lost his High Court bid to stop the prosecution.
https://www.abc.net.au/news/2022-03-15/sa-troy-bell-high-court-loses-appeal-bid/100911124
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Accidentally paid a fraudulent invoice? Your legal position is murky – 15 March 2022
If you have accidentally paid a fraudulent invoice, are you liable to pay an invoice a second time, or is the supplier liable for failing to have adequate cyber security? The answers to this question will depend on the precise circumstances that occurred surrounding the fraudulent payments. Article reviews basic principles that have been considered.
https://www.lexology.com/library/detail.aspx?g=b88b8b74-ecbd-4236-93f9-0dd48d3d8883
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Investigation after images of Sydney home altered to include ”expansion joints’ that were never there – 15 March 2022
NSW Fair Trading is investigating allegations that builder Metricon photo shopped images of a Sydney family’s dream home, to include expansion joints” that were, in fact, not there.
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ASIC announces new whistleblower review – 16 March 2022
The corporate regulator is preparing to review whistleblower programs from a sample of companies. The upcoming review will assess how selected companies handle whistleblower disclosures, how they use the information from disclosures to address issues or change their operations, and the level of board and executive oversight of the program.
https://www.ifa.com.au/news/30901-asic-announces-new-whistleblower-review
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Mastercard says real-time payments increase risk of fraud – 16 March 2022
Mastercard is developing a new service for banks that will add card-like consumer protections to transactions sent over the real-time payment system that competes with its network.
(Digital access to AFR required to read article.)
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Melissa Caddick’s husband Anthony Koletti pens scathing letter, claiming ASIC ‘dehumanised’ his wife – 17 March 2022
Melissa Caddick’s husband says ASIC removed CCTV cameras from their Sydney home, so they will never know if his wife was murdered. He claims his wife was ‘dehumanised’ in her home by ASIC investigators.
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Mr Flamboyant’s fraud charge begs the question: How can suppliers ensure they’re paid? – 17 March 2022
Article looks at what can suppliers do to ensure they do not find themselves at the mercy of an alleged fraudster who does not pay for good and services rendered.
https://www.smartcompany.com.au/finance/fraud/mr-flamboyants-fraud-suppliers-ensure-theyre-paid/
