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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.
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
