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Investigation & Fraud News – Week ending 17 December 2021
19 stories this week:
ANZ dragged to court after cleaners and real estate agents helped write $18.5b in home loans – 26 November 2021
ASIC is suing ANZ in relation to 74 loans that may have breached the National Credit Act. The loans were referred to the bank by “introducers” – third-parties who were paid commissions for sending customers ANZ’s way. The banking royal commission heard evidence that some large-scale introducers were tailors or gym owners. ANZ dragged to court after cleaners and real estate agents helped write $18.5b in home loans – Bing
Federal government announces regulatory changes to combat scam text messages – 29 November 2021
Australians have lost $87 million to scams this year. Telecommunications companies will soon be able to block scam text messages from being sent in the first place, thanks to regulatory changes by the government.
New DNA testing technology helps AFP predict criminal profiles – 5 December 2021
A new technology that opens a new world of forensic DNA testing for criminal investigation is being used by the Australian Federal Police (AFP). It is known as Massively Parallel Sequencing (MPS) and can provide predictions for visual traits of criminals from the DNA they leave at a crime scene, allowing investigators to predict gender, biogeographical ancestry, eye colour and, in coming months, hair colour.
https://canberraweekly.com.au/new-dna-testing-technology-allows-afp-to-predict-criminal-profiles/
‘Stolen laptop’: Liquidators of collapsed Melbourne crypto company pursue bitcoin millions – 5 December 2021
Administrators of the failed cryptocurrency company “Blockchain Global Limited”, which is based in Melbourne are pursuing millions in missing bitcoin claimed to be sitting on a stolen laptop overseas. The case has highlighted the challenge of tracking down money tucked away in the murky financial world of cryptocurrency, particularly when companies go under and creditors want their money back.
Tax Office could be given phone bugging powers – 6 December 2021
The Australian Taxation Office and AUSTRAC could be handed sweeping new surveillance powers, including the right to bug people’s phones and online communications, as part of an overhaul of telecommunications intercept laws.
https://www.afr.com/politics/federal/tax-office-could-be-given-phone-bugging-powers-20211206-p59f83
(Access to digital version of AFR required to read article.)
Australia moves to sanction human rights abusers and cyber criminals – 6 December 2021
Legislation to establish ‘Magnitsky-style’ laws passed through parliament on the last sitting day of the year will have the effect of blocking human rights abusers and cyber criminals from travelling to Australia, along with other sanctions powers. The reforms have been introduced to prevent Australia from becoming an ‘isolated, attractive safe haven’ for criminals and their associated businesses for illegal gains.
Serial conman Peter Foster arrested in Victoria after failing to appear at Sydney court hearing six months earlier – 7 December 2021
Serial conman Peter Foster was arrested in the Macedon Ranges six months after failing to appear before a court in Sydney on multiple fraud charges. He was given fugitive status in May this year and is now expected to be extradited to Queensland.
https://www.abc.net.au/news/2021-12-07/serial-conman-peter-foster-arrested-in-victoria/100679978
Aussies charged in global laundering sting – 7 December 2021
Eighteen Australians are facing criminal charges after a global money-laundering sting, stopped $2.6 million in “dirty cash” flowing through the nation’s financial institutions. The Australian Federal Police operation identified 27 alleged money mules. More than 1800 people were arrested globally.
https://www.northernbeachesreview.com.au/story/7541273/aussies-charged-in-global-laundering-sting/
New Electronic Surveillance Framework To Govern How Data Can Be Accessed in Australia – 7 December 2021
A new ‘modernised and streamlined electronic surveillance legislative framework’ is set to be in place by 2023. The objective is to develop a new single Act that: better protects individuals’ information and data, including by reflecting what it means to communicate in the 21st century.
https://www.gizmodo.com.au/2021/12/electronic-surveillance-framework-australia/
Collaery prosecution to enter fourth year – 8 December 2021
The prosecution of whistleblower Bernard Collaery has been pushed back to February 2022, ensuring the case enters its fourth year with no trial date set. Mr Collaery is accused of unlawfully sharing classified information about the alleged bugging operation of the East Timor prime minister by Australian officials in 2004. Once again case highlights the need for whistleblower reforms instead of prosecution of whistleblowers.
https://www.northernbeachesreview.com.au/story/7543068/collaery-prosecution-to-enter-fourth-year/
Cryptocurrency scams targeting Australians as scammers bank more than $100 million – 9 December 2021
Australian Federal Police say cryptocurrency scams have “exploded” during the pandemic, with new figures from the Australian consumer watchdog showing a 172 per cent increase in losses between January and November this year, totalling $109 million. The article tells the story of three victims of cryptocurrency scams. Cryptocurrency scams targeting Australians as scammers bank more than $100 million – ABC News
ACCC whistleblower vindicated, goes public – but remains persona non grata – 9 December 2021
Three years ago an anonymous Australian Competition and Consumer Commission (ACCC) official was marched out of his office – and later threatened with criminal action – after internal emails became public via a television exposé on the Takata airbag scandal. Article questions what to do when we punish a whistleblower who turns out to be right?
https://www.crikey.com.au/2021/12/09/accc-whistleblower-vindicated-steps-out-of-shadows/
Woman who stole $940,000 from vet to gamble online jailed for six years – 9 December 2021
Rachel Naomi Perri stole $940,000 from her employer and used the money for online gambling. The court heard that her crimes were only discovered after a restructure led to her position as practice manager at Tasmanian Veterinary Hospital, became redundant.
AUSTRAC and Services Australia partner up to target emergency and disaster payments fraud – 9 December 2021
A new financial crime guide will help financial services businesses detect and report suspicious transactions, indicative of fraud and misuse of emergency and disaster payments administered through Services Australia.
https://www.miragenews.com/austrac-and-services-australia-partner-up-to-690130/
NatWest Fined $348.5M for AML Breach After Calling Out Crypto Fraud – 14 December 2021
NatWest has been fined $348.5 million over a case of fraud where a business customer deposited large sums of money without checks. This is the first time that the U.K.’s Financial Conduct Authority has conducted a criminal prosecution against a financial institution in the U.K.
https://beincrypto.com/natwest-fined-348-5m-for-aml-breach-after-calling-out-crypto-fraud/
Australian Deputy Prime Minister Questions Assange Extradition Ruling – 14 December 2021
Barnaby Joyce believes there are no reasons for WikiLeaks founder Julian Assange’s extradition, since the whistleblower, an Australian national, did not breach any Australian laws and was not in the US when leaked data was published, Australia’s Deputy Prime Minister.
https://www.abc.net.au/news/2021-12-14/barnaby-joyce-opposes-extradition-of-julian-assange/100697630
Fraud arrest, Brisbane – 15 December 2021
A man is being charged with four counts of fraud following investigations into alleged fraudulent activity relating to election funding. Police will allege the man, a financial administrator for a political party, submitted fraudulent documentation relating to a 2020 election funding application for $24,000.
https://beincrypto.com/natwest-fined-348-5m-for-aml-breach-after-calling-out-crypto-fraud/
NSW man accused of trying defraud COVID-19 business relief scheme of more than half a million dollars – 17 December 2021
Strike Force Sainsbery was set up in November to investigate fraudulent applications made against the micro-business grant program. A Warialda Rail man has been charged with 51 offences, including obtaining financial advantage by deception and is accused of making fraudulent applications worth $530,000.
https://www.abc.net.au/news/2021-12-17/man-charged-over-covid-19-finacial-relief-fraud/100707812
Online credit card fraud on the rise leading up to holiday season – 17 December 2021
Research indicates a significant increase in credit card fraud leading up to the holidays. The new data from AusPayNet shows a 9.2% rise in fraud on payment card transactions in the 12 months to 30 June 2021 (FY21) alongside increased online spending during COVID-19 lockdowns. Overall, the total spending on cards rose 5.4% to $847.3 billion during this same period, with the fraud rate being 57.8 cents per AUD$1,000 spent.
https://securitybrief.com.au/story/online-credit-card-fraud-on-the-rise-leading-up-to-holiday-season
Investigation & Fraud News – Week ending 26 November 2021
15 stories this week:
What are the relevant statutes and which government authorities are responsible for investigating and enforcing them? – 19 November 2021
An Informative article outlining the Australian legislative framework and the Corporations Act 2001. It also outlines the role of ASIC and other regulatory bodies and what powers they have. The article also details what conduct is most commonly the subject of securities enforcement and the legal issues that commonly arise, in enforcement investigations.
Former WA public servant Paul Whyte sentenced to 12 years in jail for stealing taxpayer millions – 19 November 2021
Paul Whyte has been sentenced to 12 years in jail for masterminding the theft of $27 million of taxpayers’ money and using it to fund a lavish lifestyle. He committed his crimes over 11 years, while he was one of WA’s top public servants, in the state government department that looks after public housing. The funds were taken through an elaborate fake invoice scheme, which involved three shell companies.
https://www.abc.net.au/news/2021-11-19/disgraced-public-servant-paul-whyte-sentencing/100630840
Court orders Melissa Caddick’s financial services company Maliver to be wound up – 22 November 2021
Dozens of investors, who were swindled out of millions of dollars by missing Sydney businesswoman Melissa Caddick, are a step closer to getting some of their money back. ASIC has been pursuing court action to recoup more than $23 million left owing to 72 clients.
ASIC boss urges ‘great caution’ to cryptocurrency investors – 22 November 2021
Corporate regulator Joe Longo, has urged consumers to show a high degree of caution towards the cryptocurrency craze, urging people to be careful about putting their savings into an unregulated asset class that many do not fully understand.
https://7news.com.au/business/cryptocurrency-not-a-fad-minister-warns-c-4645697
Watch out for fake online deals and avoid scammers this sales season – 22 November 2021
Australians have already lost about $12.9 million to online shopping including classifieds scams so far this year, and the ACCC is urging consumers to watch out for dodgy deals as pre-holiday sales approach.
https://www.miragenews.com/watch-out-for-fake-online-deals-and-avoid-677894/
Woman who stole $940k from employer left gambling app on auto while she slept – 23 November 2021
Rachel Naomi Perri pleaded guilty to stealing $940,000 from her employer, whilst working as an account manager at the Tasmanian Veterinary Hospital. The money was used to fund her addiction to an online gambling game that does not pay out real money.
How migration fraud works and ways to avoid visa scams in Australia – 23 November 2021
Pre-pandemic data showed the Department of Home Affairs received an average of around 500 visa scam reports per year, from people who use unregistered ‘migration agents.
Former Palm Island mayor Alf Lacey’s fraud charge dropped, magistrate claims lack of evidence – 23 November 2021
Alf Lacey has been charged with fraud amounting to at least $100,000 and failure to correct a register of interests, while serving as mayor of Palm Island in 2020.
Before Richard Ludwig’s company went bust, he and his pre-insolvency advisers smuggled more than $740,000 out of the business – 24 November 2021
With the advice of two pre-insolvency advisers, Richard Ludwig arranged to illegally smuggle more than $740,000 out of his company Cap Coast Telecoms before it went into liquidation. ASIC has admitted the pre-insolvency industry is largely unregulated.
Scamwatch: Dodgy investment scams are doing the rounds – 24 November 2021
Scam awareness week is this week. Article outlines the most common and recent scams targeting Australians. Fake bond offers and Job offers, threats, Osko payments and investment scams are the most common.
https://www.manningrivertimes.com.au/story/7520435/all-the-online-scams-you-need-to-avoid/?cs=12
What will the ATO do if you are scammed out of your crypto? – 24 November 2021
Article discuss how the Australian Taxation Office (ATO) view crypto losses and the chances of getting your money back if your scammed. With more and more Australians holding crypto, this area is only going to become more mainstream over the next few years.
https://www.smartcompany.com.au/finance/tax/ato-scammed-out-of-your-crypto/
Former MP Barry Urban sentenced to three years in jail over fake medals, lies about qualifications – 25 November 2021
Disgraced former West Australian MP Barry Urban, has been sentenced to three years jail, for an elaborate series of lies he told over two decades about his university qualifications and military service.
Adelaide Brighton Cement employee Glenda Burgess deceived previous employer, court told – 25 November 2021
Glenda Burgess (a Senior Accounts Manager) at Adelaide Brighton Cement has been found guilty of deceiving her employer out of $12 million. She made false entries allowing a customer to only pay $20 million for $32 million worth of cement and hid ”Concrete Supply’s” debts, increased their credit limits without authorisation and had created several large manual entries benefiting ”Concrete Supply’. Concrete Supply was not complicit in the crimes.
Fake volunteer firefighter Sharon Tully Hill jailed over Black Summer relief payments fraud – 25 November 2021
Sharon Tully Hill who posed as a volunteer firefighter, despite never being one, fraudulently claimed disaster relief funds from the Black Summer bushfires has been sent to jail. She received $190,000 through bushfire relief payments but has never volunteered for the RFS.
https://www.abc.net.au/news/2021-11-25/woman-sentenced-for-black-summer-bushfire-fraud/100649066
Leaked emails reveal how Macquarie Bank became entangled in an $80 billion scandal – 26 November 2021
Australia’s largest investment bank Macquarie is among 100 banks and financial institutions under investigation over a scheme estimated to have cost governments $80 billion. Leaked documents reveal that, inside Macquarie, their practices were thought to be a legal loophole which was tolerated – although not endorsed – by the German tax authorities.
https://www.abc.net.au/news/2021-11-26/macquarie-bank-cum-ex-tax-scheme-germany/100643674
Investigation & Fraud News – Week ending 19 November 2021
11 stories this week:
Griffith University: Most Deserving Whistleblowers Get No Protection New Research Shows – 12 November 2021
New research from Griffith University’s Whistling While They Work” project has revealed more than half of all public interest whistleblowers who experience serious repercussions for reporting wrongdoing receive no remedies for detriment they suffer, despite Australia’s long history of whistleblower protection laws and public sector policies.
ACCC probes flower industry over claims customers are being scammed into buying from ‘local’ florists – 13 November 2021
A whistleblower at one of Australia’s largest online flower retailers said she was trained to deliberately mislead customers. The conglomerate ”Roses Only” appears to give the false impression the businesses were local shops. The ACCC is investigating ‘deceptive’ practices in the flower delivery industry.
https://www.abc.net.au/news/2021-11-13/accc-probes-flower-industry-over-scamming-claims/100612948
Forum executive to face court for first time – 13 November 2021
A hearing in March will hear from Forum Group director Vincenzo Tesoriero (Bill Papas’s business partner) about his role in allegedly scamming Westpac and other banks of about $400 million. Tesoriero is asking the court to end a freezing order on his assets, which include a vast portfolio of property and a luxury yacht.
https://www.mpamag.com/au/news/general/forum-executive-to-face-court-for-first-time/316432
Retirees lose $2.8 million to alleged fake bond scam – 13 November 2021
A US man living in Sydney’s east faced court on Saturday after being allegedly scamming retirees of more than $2.8 million via fake bonds, mainly through self-managed super funds and then channelling the money to his personal bitcoin account.
Government waits until after election to change whistleblower laws, support for protection high – 15 November 2021
New research shows that a majority of Australians want more legal protections for public servants to act as whistleblowers. Assistant attorney general Amanda Stoker told the National Whistleblowing Symposium last week, the federal government was preparing to amend the Public Interest Disclosure Act to better protect those in the public sector.
AFP raids Sydney EverBlu offices as part of ASIC investigation – 16 November 2021
The Sydney offices of controversial stockbroker EverBlu Capital were one of several sites in Sydney and the Gold Coast raided by federal police as part of a sweeping corporate investigation. EverBlu has come under scrutiny in the past, for its disclosure of paying influencers shares and stock options to promote listed companies in which it had advisory roles. Now its alleged they are entangled with cannabis stock ”Creso Pharma”.
https://www.businessinsider.com.au/afp-raids-everblu-as-part-of-asic-investigation
Melbourne man who allegedly stole $1.4m from victims in international diamond scam charged – 17 November 2021
A 42-year-old man from Melbourne’s south-east claimed to own a diamond mine in Sierra Leone, West Africa, when he allegedly approached his victims and offered them the opportunity to invest in the mine. Once he received initial payment, the man allegedly asked for equipment and various gifts for his employees, before on-selling the items in an offshore shop.
Whistleblower ordered to end media crusade – 17 November 2021
Troy Stolz – a former compliance auditor with ClubsNSW – last year spoke out about a widespread and “alarming” failure to comply with money laundering laws in pubs and clubs across the state. Now he is being barred from continuing a media campaign against his former employer, while he is sued for leaking documents.
https://thewest.com.au/business/whistleblower-ordered-to-end-media-crusade-c-4589299
ASIC sues MLC for multiple insurance failures – 19 November 2021
ASIC claimed that MLC’s failure to implement appropriate systems and controls resulted in unpaid insurance benefits, premiums being charged without notice and underpaid refunds. It was alleged MLC’s conduct led to over $17.5 million in financial harm to over 260,000 customers
https://superreview.moneymanagement.com.au/news/insurance/asic-sues-mlc-multiple-insurance-failures
Former Labor MP Craig Thomson granted bail after being charged over alleged visa migration fraud – 19 November 2021
Former federal Labor MP Craig Thomson will “vigorously fight” charges over his involvement in an alleged multi-million-dollar visa migration fraud. Police allege Mr Thomson was the “prime facilitator” or common thread of the scheme between migration agencies and visa applicants.
Millennials forking out millions to online shopping scams – 19 November 2021
The rise in online shopping scams has been fuelled by the rapid growth of online shopping, with brick-and-mortar retailers closed throughout the pandemic due to lockdowns. A report published by Reviews.org found New South Wales residents had been hit the hardest by online shopping scams, recording a loss of $1.55 million to date through 2021. Victoria closely trailed behind at $1.51 million, while Queenslanders reported a loss of more than $888,000 to date.
https://www.savings.com.au/news/millennials-forking-out-millions-to-online-scams
Investigation & Fraud News – Week ending 12 November 2021
11 stories this week:
Adelaide father-of-three Joshua Luke Matheson handed five-year jail term over $500k tax fraud – 5 November 2021
Joshua Luke Matheson received more than $29,000 after filing a fraudulent tax return. He made up false employers and income to defraud the Australian Tax Office out of half a million dollars and has been jailed for five years.
Invasive surveillance: Are regulators ready to deal with Facebook’s ‘metaverse’ – 6 November 2021
As Australian lawmakers struggle to regulate social media’s misinformation, conspiracies and extremist content, they are already facing the push to make an even more invasive technology, part of everyday life. A new generation of the internet will enable the real physical world and virtual worlds to seamlessly converge. This means mass data harvesting and highly targeted advertising.
(Access to digital verision of SMH required to read article)
Labor proposes anti-scam centre, calls for crackdown on social media companies profiting from fraud – 7 November 2021
In response to record fraud, the federal opposition is proposing a national anti-scam centre to combat what it calls a “scamdemic” of online and phone fraudsters. Scammers stole $851 million from Australians last year, a record amount according to the Australian Competition and Consumer Commission.
NSW Governor Margaret Beazley ignores reporters’ questions over bullying claims – 8 November 2021
NSW Governor Margaret Beazley has ignored reporters’ questions about investigations of bullying allegations against her by an anonymous whistleblower. The person claimed Ms Beazley’s “unjustified criticism or complaints” and “constantly changing goal posts” have been leaving employees “in tears at their desks”.
Fake Gold Coast lawyer banned from running law firm, as police seek missing money – 8 November 2021
A fake Gold Coast lawyer, who allegedly lost more than $430,000 in clients’ money, has been banned from managing a legal practice and is being investigated by police.
https://www.abc.net.au/news/2021-11-08/nerise-dawn-moore-fake-lawyer-banned/100601320
Queensland Police warn of ‘sophisticated’ email scam after grazier loses thousands of dollars – 9 November 2021
A Queensland grazier was paying what appeared to be a legitimate business invoice, when he fell victim to a ‘very sophisticated’ email scam. Business email compromise (BEC) was the number 1 scam in Australia in 2019, with losses amassing $132 million.
Crypto criminals are blackmailing Instagram users into swindling friends – 10 November 2021
The latest crypto scam forces Instagram users to make videos directing their followers to phony get-rich-quick schemes. Scammers use a combination of social engineering, cryptocurrency, and old-fashioned blackmail.
Bank fraudster points finger at boyfriend – 10 November 2021
A bank teller behind bars over a $2.25 million fraud says her then-boyfriend, was the one who raised the potential of accessing the victim’s millions.
https://7news.com.au/news/crime/bank-fraudster-points-finger-at-boyfriend-c-4505444
Government reveals plan to reform Australia’s whistleblowing laws – 11 November 2021
Assistant Attorney General Amanda Stoker, has outlined a government plan to bring public sector whistleblowing laws in line with the reformed corporate whistleblowing scheme. These changes are due to new research, showing the current scheme is failing to protect those who speak out about wrongdoing.
https://7news.com.au/politics/federal-whistleblower-law-changes-outlined-c-4516926
Remote employee surveillance is dangerous territory – 11 November 2021
Electric monitoring of home workers by companies is rising rapidly and research shows how misuse of this technology can allow employers to invade staff privacy easily, due to lack of government regulation.
https://itbrief.com.au/story/remote-employee-surveillance-is-dangerous-territory
Refugees from Sydney’s Tamil community targetted by social media investment scam – 12 November 2021
The ‘Hope’ Business scheme promised rapid returns on investments and commissions for signing up family and friends, before it vanished without a trace. At least 100 members of Sydney’s Tamil community have been caught up the scam.
https://www.abc.net.au/news/2021-11-12/hope-business-scam/100613210
