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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
Investigation & Fraud News – Week ending 29 October 2021
14 stories this week:
Former Renewal SA chief executive John Hanlon calls for permanent stay on corruption charges – 22 October 2021
A former senior public servant accused of making fraudulent travel claims, will argue the prosecution case against him amounts to an abuse of process.
New whistleblower accuses Facebook of wrongdoing: report – 22 October 2021
An unnamed whistleblower has filed a complaint with US financial regulator Securities and Exchange Commission, alleging Facebook managers routinely undermined efforts to combat misinformation and other problematic content, for fear of angering then US president Donald Trump or for turning off the users who are key to profits. The information related to Russia’s interference in the 2016 US presidential election.
Dodgy association may sink Australian Swimming League – 24 October 2021
The Australian Swimming League – an ambitious plan backed by Swimming Australia to stage a series of made-for-TV race meets involving Olympic athletes – is uncertain to go ahead after the project’s founder (David Brandi) and principal investor was convicted of tax fraud and banned from serving as a company director.
Australia plans to force parental consent for minors on social media – 25 October 2021
Australia plans to make social media companies obtain parental consent for users under the age of 16 and threaten fines of up to A$10 million for internet platforms which fail to comply, under draft legislation published recently. The new proposed rules would put Australia among the most stringent countries in terms of age controls for social media, and build on efforts to rein in the power of Big Tech following mandatory licencing payments for media outlets and plans to toughen laws against online misinformation and defamation.
https://www.yahoo.com/now/australia-plans-force-parental-consent-033314204.html
Melbourne’s – Top Private Investigators The Herald Sun has researched some famous criminal cases over the years and interviewed the high-profile investigators involved – 26 October 2021
Great article explaining what a Private Investigator really does in this common age and what motivates criminals. Our very own AIPI President Andrew Patterson and AIPI members Forde Nicolaides, Timothy Carrodus, Dean Newlan and Wayne Gladman were interviewed.
(Access to digital version of herald sun required to read this article.)
Cape York man on trial for fraud after allegedly striking multi-million-dollar mining deal on native title land – 26 October 2021
Larry Joe Woosup, a Cape York man who allegedly struck a multi-million-dollar deal with a mining company behind the backs of other traditional owners and siphoned off cash for his own use has appeared in court. Mr Woosup is accused of striking a deal with a mining company, without the consent of other traditional owners.
Parliament should intervene to protect whistleblower’s communications to MP, committee says – 26 October 2021
The powerful Privileges Committee has found some of the documents to be given to ClubsNSW in the case against whistleblower Troy Stolz should be protected by parliamentary privilege.
‘Anyone with a laptop’: How cyber criminals are getting smarter at stealing money – 26 October 2021
Hacking has become big business. The latest data from the Australian Cyber Security Centre shows self-reported losses from cybercrime totalled more than $33 billion in the last financial year. Article details how cyber criminals change you mobile number and then research your personal information, to then gain access to bank accounts.
Crown lucky to escape the Victorian royal commission with its licence intact – 27 October 2021
According to the findings of a royal commission, Crown dodged paying hundreds of millions of dollars in state taxes, consorted with criminal gangs and facilitated money laundering on an epic scale. It also failed to prevent staff from being jailed in China and shredded responsible gambling laws. Yet despite class actions and attention from financial crime agency AUSTRAC Crown, gets to keep its prized Victorian casino licence.
Former lawyer Tracey-Anne Smith who ripped off elderly clients walks from court after defrauding WWII refugee – 28 October 2021
Anne Smith, a Gold Coast lawyer has ripped off the estates of eight elderly clients and was found guilty of professional misconduct for deceiving and defrauding them.
Maria Carmela Pau, accused of issuing fake COVID exemptions, appears in court – 28 October 2021
A Queensland woman who allegedly posed as a doctor and issued hundreds of fake COVID-19 exemption certificates has appeared in court. Police allege she told officers she issued about 600 false documents to give people exemptions from having COVID tests, being vaccinated or needing to wear a mask.
Disgraced Labor MP Barry Urban remanded in custody after lying to WA Parliament – 29 October 2021
Disgraced former WA politician Barry Urban has been remanded in custody while he awaits being sentenced for forging university qualifications and repeatedly lying about his supposed police and military service.
https://www.abc.net.au/news/2021-10-29/disgraced-former-wa-mp-barry-urban-behind-bars/100579380
Australia’s CBA pleads guilty for fraud charges – 29 October 2021
ASIC has announced that CBA has pleaded guilty to 30 criminal charges for mis-selling consumer credit insurance between 2011 and 2015. Scrutiny of Australian lenders and financial institutions has ramped up significantly since a Royal Commission inquiry in 2018 found widespread shortcomings in the sector, forcing companies and regulators to take swift action.
ASIC issues warning on Whistleblowing Policies – 29 October 2021
ASIC reviewed a sample of whistleblowing policies and found that the majority were not compliant with the requirements under the Corporations Act. In particular, ASIC is concerned that a number of the policies contained unclear, incomplete or inaccurate information about how potential whistleblowers can make a qualifying disclosure and about whistleblower protections that are available under the Corporations Act.
https://www.lexology.com/library/detail.aspx?g=c4e9a86a-dc43-4f4c-ab12-dc55400ce8c3
Investigation & Fraud News – Week ending 21 October 2021
12 stories this week:
Ex-Boeing test pilot indicted for fraud in 737 Max probe – 15 October 2021
Boeing’s former 737 MAX pilot, Mark Forkner, was indicted for fraud for allegedly misleading regulators about problems tied to the aircraft’s two fatal crashes. The ex-chief technical pilot is the first Boeing employee to be charged over the 737 Max’s failures. Three hundred and forty-six people perished in both accidents.
https://abcnews.go.com/Politics/boeing-pilot-indicted-fraud-737-max-probe/story?id=80561974
Court hears about complex web of companies as former Bellamy’s director Jan Cameron faces Hobart court – 19 October 2021
Ms Cameron who is the Former Bellamy’s director and Kathmandu’s founder, is facing charges of failing to disclose information in respect of a substantial holding in a company and allegedly making a false or misleading statement in a document lodged with ASIC in 2017. The prosecution told the court that Ms Cameron engaged in “share-warehousing,” or holding an interest in a company through entities or other arrangements without their name being directly linked to the holding.
https://www.abc.net.au/news/2021-10-19/tas-jan-cameron-bellamy-court-case/100550264
Unauthorised electronic transaction complaints rocket – 19 October 2021
Complaints involving unauthorised financial transactions and scams are rising fast, as use of online services during the pandemic increases and fraudsters become more active. Electronic banking grievances made to the Australian Financial Complaints Authority (AFCA) increased by 76 per cent during the year ended June 30, compared with the same period a year earlier.
NSW police charge two Central Coast men over COVID grants fraud and drug supply – 20 October 2021
Cybercrime squad detectives have charged two men over alleged COVID-19-related rorts and drug supply on the New South Wales Central Coast. One of the men, was accused of lodging fake ‘Job Saver’ and business grant applications for himself and on behalf of others, obtaining about $90,000.
https://www.abc.net.au/news/2021-10-20/two-men-accused-of-fraud-in-nsw-central-coast/100552714
Overwhelming support for fining dodgy finance executives – 20 October 2021
New polling shows that nine in ten Australians, want finance executives to pay a penalty when they break the law. The findings, from a quarterly survey by consumer advocacy group Choice, come just one week before the Coalition is expected to introduce its Compensation Scheme of Last Resort (CSLR) and Financial Accountability Regime (FAR) bills into the House of Representatives.
The compensation scheme, a recommendation from the Hayne royal commission, attempts to protect people who cannot seek redress because the financial services firm that did them wrong has collapsed.
Australian charities need to get better at mitigating fraud risks – 20 October 2021
Cybersecurity incidents in the not-for-profit sector are increasingly common and sophisticated, with recent attacks experienced with Anglicare Sydney, UnitingCare Queensland, and Oxfam Australia, to name a few. However, recent research by PwC highlights that in-house cybersecurity skills are not being prioritised, reflecting a dire need for charities to cost-effectively invest in technology that can prevent and protect them against the latest threats.
Crypto Senate inquiry recommends laws to set Australia up as digital innovation hub – 20 October 2021
A Senate inquiry has recommended changes to taxation laws, licensing and regulatory regimes to encourage digital and crypto-asset businesses to set up in Australia. Tax discounts and a new licensing regime are among the committee’s recommendations. If passed into law, the industry believes Australia could become a digital innovation hub.
Sydney Commonwealth Bank clerk admits stealing $2.4 million to buy house, luxury goods – 20 October 2021
While working as a Customer Service Specialist in 2015, CBA clerk Hsin-Yu Tsai, transferred $2.25m from one customers account into a secretly Netbank savings account. She also withdrew $150,000 in cash from the same customer’s account. She paid off a home and bought luxury items with the proceeds of her fraud.
Underpayments bill balloons to record $148 million last year – 20 October 2021
Australia’s wages watchdog (The Fair Work Ombudsman) recouped almost $150 million for workers in the last financial year, a record figure five times greater than the $30 million it recovered three years earlier and an indication employees are being underpaid on a grand scale.
Facebook whistleblower Frances Haugen tells Australian politicians to regulate social media or be ignored – 21 October 2021
A former Facebook data scientist has told Australian politicians that Facebook fears regulation and that Australia should team up with the US in a bid to rein in its power. Frances Haugen quit Facebook earlier this year and told a congressional hearing, that Facebook’s products were harming children and fuelling polarisation.
Court issues warrant for arrest of Forum Group’s Bill Papas – 21 October 2021
The Federal Court has issued a warrant for the arrest of Forum Group CEO Bill Papas, that is expected to eventually trigger his extradition from Greece to Australia, to face fraud allegations. The arrest warrant comes amid Papas’ alleged failure to adhere to court orders, breaching freezing orders and showing no intention to return to Australia to face fraud allegations from multiple banks.
https://www.arnnet.com.au/article/692358/court-issues-warrant-for-arrest-of-forum-groups-bill-papas/
Mark Zuckerberg Will Be Added as a Defendant in Lawsuit Over Cambridge Analytica Scandal – 21 October 2021
Mark Zuckerberg, CEO of Facebook, might be held personally liable for damages in a consumer protection lawsuit filed in Washington. It is alleged that the social media giant had misled consumers about its privacy policies.
Investigation & Fraud News – Week ending 15 October 2021
12 stories this week:
China billionaire involved in iron ore bribery: Dealings with Australia revealed – 6 October 2021
The Pandora papers have revealed that Du Shuanghua, a Chinese billionaire who confessed to paying bribes for Australian iron ore, continued to trade with major Aussie companies for years even after the scandal became public in 2010.
Bank fraud syndicate facing 200 charges – 7 October 2021
Two former bank employees and two accountants have been charged with more than 200 offences, over a scheme that allegedly netted hundreds of thousands of dollars in fraudulent loans. Police set up a strike force to investigate the syndicate and have now arrested eight people.
https://www.mandurahmail.com.au/story/7461051/bank-fraud-syndicate-facing-200-charges/
ACCC calls for banks to name-check transactions to stop ‘rapidly rising’ scams – 8 October 2021
It has been revealed that Australian banks do not block transactions where the name listed by the sender does not match the account details of the recipient. The ACCC has asked major to update their processes to stop customers from transferring money to fraudsters, after an industry body accused the sector of ‘victim blaming’ to avoid responsibility for scam losses.
Australia urges US to follow its lead in regulating social media giants – 9 October 2021
Facebook has been under scrutiny this week after whistleblower Frances Haugen leaked tens of thousands of documents showing it withheld research into the harms of its products.
Deputy Prime Minister Barnaby Joyce says the government is not joking over plans to regulate social media – 10 October 2021
Australia has intervened in the global push to regulate tech giants, writing to the US Senate to urge it to follow the nation’s lead to make social media companies deliver safer products.
The fallen Star: Sydney’s cleanskin casino caught in ‘dirty’ company – 10 October 2021
‘Star Entertainment’ has been enabling suspected money laundering, organised crime, large-scale fraud and foreign interference within its Australian casinos for years, even though its board was warned its anti-money-laundering controls were failing. According to multiple casino and law-enforcement agents, between 2014 and 2021, Star cultivated high-roller gamblers who are allegedly associated with criminal or foreign-influence operations
Innovation investment is key to consumer trust – 11 October 2021
The rapid digitisation of business including accelerated development of new practices and rapid on-boarding of new suppliers, has been celebrated as the silver lining of the COVID-19 pandemic, but digital identity fraud and cyber attacks will remain.
University investigates claims of research misconduct in studies on ageing – 13 October 2021
The University of NSW has launched a review of allegations of research misconduct in several taxpayer-funded studies such as the research into ageing. The review comes after a well-known scientific sleuth went public with allegations some papers showed evidence of image or data error, or manipulation.
Demands for Premier to face IBAC grilling don’t stack up – 13 October 2021
The calls for Daniel Andrews to be hauled before Victoria’s anti-corruption commission, to face coercive questioning in a public hearing about the alleged misuse of taxpayer funds for political purposes are misguided as IBAC tends to hold a public hearing only if it has strong evidence of alleged wrongdoing.
Sydney inner west man charged over $20m payroll fraud – 14 October 2021
A Sydney man has become the 14th person to face charges over an elaborate $20 million payroll tax fraud and money laundering scheme. It is alleged that the man received and possessed a total of $456,150 that was proceeds of an illegal scheme to siphon off money that should have been remitted to the ATO, and that he was reckless as to the fact that the money was the proceeds of crime.
https://www.miragenews.com/sydney-inner-west-man-charged-over-20m-payroll-648763/
Bill Papas’s companies earned $500 million from fraud, liquidators allege – 14 October 2021
Alleged fraudster Bill Papas may have committed criminal offences according to liquidators, after allegedly siphoning off more than $500 million from Westpac and other major banks since 2013. That is the key finding of a damning liquidators’ report looking into the failure of his equipment leasing company Forum Finance and its related entities. He is also being investigated by the Financial Crimes Squad (a division of NSW Police)
https://www.abc.net.au/news/2021-10-14/bill-papas-forum-fraud-liquidator/100534900
Singapore patrol robots stoke fears of surveillance state – 16 October 2021
Singapore has trialled patrol robots that blast warnings at people engaging in “undesirable social behaviour”, adding to an arsenal of surveillance technology in the tightly controlled city-state that is fuelling privacy concerns.
