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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
Investigation & Fraud News – Week ending 5 November 2021
11 stories this week:
Why Sydney woman stole $3.5m from Commonwealth Bank – 30 October 2021
A former Commonwealth Bank employee who stole $3.5m to pay for a lavish lifestyle and appease an abusive ex has been jailed. Hsin-Yu Tsai, used her position as a customer service officer to move millions of dollars out of the accounts of unsuspecting clients.
Telcos take action as text, phone call scams hit record high – 31 October 2021
Australians have reported a record $77.8 million in losses due to text and phone call scams. This is more than double the amount reported over the same period last year. Telcos will now be forced to identify and block text message scams under new rules.
Scammers behind $SQUID coin disappear with $4.3 million in ‘invested’ cash – 2 November 2021
Cryptocurrency scammers have made off with approximately A$4.38 million, after setting up a fake currency playing off the popularity of Netflix’s hit show, Squid Game. Billed as a “play-to-earn” cryptocurrency, $SQUID allowed people to buy tokens to play in online games and potentially grow their wealth. With zero option to cash out, the scam should have been clear as day.
ASIC sues major Gold Coast timeshare company – 2 November 2021
A timeshare company is being sued over allegations customers paid up to $25,000 to join its investment scheme, only to find a lack of availability when they went to book a getaway.
(Digital access required to read article.)
Perth Racing whistleblower pushed to resign after calling out inappropriate conduct of her boss – 2 November 2021
The Perth Racing employee who blew the whistle on former managing director John Yovich’s alleged serious workplace misconduct, was allegedly pushed to resign less than three months later. The employee was allegedly given an ultimatum; either accept a damages payout and leave on good terms, or proceed with the investigation which could lead to termination. She resigned.
https://www.brisbanetimes.com.au/national/western-australia/perth-racing-whistleblower-pushed-to-resign-after-calling-out-inappropriate-conduct-of-her-boss-20211029-p594bk.html
CVS director of organized retail crime explains how professional thieves are stealing $2,000 from stores in just 2 minutes – 2 November 2021
The lack of regulation surrounding online marketplaces such as Amazon and eBay, means that an estimated $US500 ($AU673) billion in illicit stolen and counterfeit goods are sold on third-party marketplaces, like Amazon each year.
How to prevent a phishing attack online – 3 November 2021
New malware threats such as crypto-ransomware and phishing scams are rising exponentially. These complex scams are designed to trick users into revealing banking details, account passwords, or other personal information, from which the attackers steal money or in the most severe cases, the user’s identity. Article outlines eight tips to cyber safety.
https://www.pcworld.idg.com.au/article/692760/how-prevent-phishing-attack-online/
Facebook to shut down controversial facial recognition – 3 November 2021
Meta CEO Mark Zuckerberg has announced plans to ditch face recognition technology used on the Facebook app. It follows a class action lawsuit in the US, in which a federal judge approved a settlement of $650 million against Facebook, for allegedly using face-tagging and other biometric data without users’ permission.
Geraldton financial adviser Thomas ‘Graham’ Greenaway jailed for $2.9m Aboriginal trust theft – 4 November 2021
Geraldton financial adviser Thomas ‘Graham’ Greenaway will spend at least four years in jail for stealing $2.9 million from an Aboriginal charitable trust, while he was the trustee. A District Court judge has also ordered the 70-year-old to repay $2.1 million to the Yugunga-Nya People’s Trust.
Qoin rejects potential class action allegations of ‘pyramid selling’, deception, citing ‘witch hunt’ – 4 November 2021
Salerno Law states it will review whether BPS financial Ltd and Gold Coast digital currency “Qoin” have been “engaging in misleading and deceptive conduct … making false or misleading representations … conducting pyramid selling of financial products” and “fraud”, and whether it has failed to “comply with financial services obligations” and “consumer guarantees”. The BPS director has dismissed the allegations, describing them as part of a “witch hunt”.
https://www.abc.net.au/news/2021-11-04/qoin-potential-class-action-rejects-allegations/100590132
Former Papunya shop manager Bruce Ross pleads guilty to theft – 4 November 2021
A former shop manager in a remote Aboriginal community has escaped jail time after admitting to stealing thousands of dollars from the business. He created a fake invoice which he sent to a Commonwealth bureaucrat to try to cover his tracks and has pleaded guilty.
https://www.abc.net.au/news/2021-11-04/former-remote-shop-manager-pleads-guilty-to-theft/100592300
