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Investigation & Fraud News – Week ending 13 August 2021
10 stories this week:
Manhunt for alleged Bitcoin scammer who conned 400,000 people – 6 August 2021
A worldwide manhunt has been launched for a bitcoin scammer, Faruk Fatih Ozer (Founder of Thodex), who allegedly went on the run with $US2 billion. The alleged scam is thought to be the largest con in Turkish history, having scammed approx. 400,000 people – 6 August 2021
Further fraud charges laid against Canberra ECEC director – 6 August 2021
The former director of a Canberra based early childhood education and care (ECEC) service has received a further 80 fraud charges as the case, which sees her accused of defrauding the business of more than $375,000 unfolds. The director allegedly made payments from the service bank account into her own.https://thesector.com.au/2021/08/06/further-fraud-charges-laid-against-canberra-ecec-director/
https://thesector.com.au/2021/08/06/further-fraud-charges-laid-against-canberra-ecec-director/
Forum Group creditors claim to be owed $580M – 6 August 2021
Administrators appointed to the embattled Forum Group have revealed a lengthy list of at least 112 creditors that together claim to be owed more than $580 million by the company.
ttps://www.arnnet.com.au/article/690327/forum-group-creditors-claim-owed-580m/
Advisers banned over corporate breaches – 9 August 2021
ASIC has announced that Gold Coast-based advisers? Trent Allan and Fabrizio Urrutia? have? each? received a five-year ban for breaching financial services? laws. The duo are said to not be adequately trained or competent to provide financial services, including life insurance advice and did not comply with financial services laws.
https://www.insurancenews.com.au/life-insurance/advisers-banned-over-corporate-breaches
Ex-Tigers intern behind years-long fraud – 9 August 2021
Adam David Jones collected nearly $900,000 from an Illegal scam targeting retirement funds and businesses transactions. He infiltrated business records and anticipated when large transactions were to occur. He later targeted large sums stored in superannuation accounts.
https://7news.com.au/news/crime/ex-tigers-intern-behind-years-long-fraud-c-3636305
Pair deny $135k Tasmanian council fraud – 10 August 2021
A couple have faced court accused of defrauding a Tasmanian council to the tune of $135,000. Casey Maree Bryant, is facing more than a hundred charges in total, including counts of fraud, dishonestly acquiring a financial advantage and inserting false information as data.
https://thewest.com.au/news/crime/pair-deny-135k-tasmanian-council-fraud-c-3646612
Millions paid to directors: New details of Westpac’s Forum fraud emerge – 11 August 2021
Westpac has accused Bill Papas’ Forum Finance of forging signatures of staff at French giant Veolia’s New Zealand offices on faked contracts that extracted an additional $44 million from the bank. It is also alleged that Mazcon (Greek company), allegedly received $16 million as part of the allegedly fraudulent scheme and that Vince Tesoriero (Papa’s business partner), received $28 million in cash.
Internal controls lag in the face of transformation: KPMG – 11 August 2021
A new poll conducted by KPMG that surveyed nearly 300 respondents from across 100 organisations – financial risk managers, accountants, internal auditors and compliance managers among them – found that nearly half had yet to automate internal controls.
Aussies warned of fake Bitcoin trading websites as cryptocurrency scams increase – 12 August 2021
Aussies looking to invest in boom cryptocurrency Bitcoin are being warned to carefully check the credentials of their trading platform, after a spike in scams was detected. Consumers need to remember Bitcoin is unregulated.
Poly Network cryptocurrency hack sees hundreds of millions of dollars worth of Ethereum, other coins stolen – 12 August 2021
Hackers behind one of the biggest ever cryptocurrency heists, have returned more than a third of the $832 million in digital coins they stole, according to the company Poly Network, at the centre of the hack.
https://www.abc.net.au/news/2021-08-12/cryptocurrency-heist-hack-poly-network-ethereum/100372374
Investigation & Fraud News – Week ending 6 August 2021
13 stories this week:
Nudie co-founder tax fraud claims near $250m – 29 July 2021
Australian liquidator John Sheahan has launched new legal action in Israel against members of the Binetter family, which if successful would lift the total he has realised from tax fraud claims to nearly a quarter of a billion dollars. The pursuit of the Binetters is a 15-year saga that began in July 2006 when the Tax Office began auditing companies set up by Emil and Erwin Binetter, who had built a property group as well as co-founding the Nudie Juice business.
https://www.afr.com/policy/tax-and-super/nudie-co-founder-tax-fraud-claims-near-250m-20210728-p58dvd
ASIC sues AMP for corporate super rip off – 30 July 2021
ASIC has started civil proceedings in the Federal Court against six AMP companies that charged fees on corporate superannuation accounts, where no services were provided. The regulator estimates more than 1500 customers were charged more than $600,000 in fees for financial advice even though those customers were told they were no longer able to access the service.
Mining magnate accused of hiding assets overseas in order to avoid $38.5m in income tax – 30 July 2021
Bob Johnson, the founder of leading mining technology provider Maptek, faced the Adelaide Magistrates Court, after being charged last week in relation to an alleged taxation fraud, spanning 15 years and totalling more than $38.5 million. He is accused of hiding assets overseas.
US man pleads guilty over attempted $430m COVID fraud on NSW – 30 July 2021
A man in Texas has pleaded guilty to attempting to swindle $430 million from the NSW government by offering to sell 50 million COVID-19 protective masks he did not have. Arael Doolittle, could face up to five years in jail.
(Access to digital version of SMH required.)
Risk compliance for business critical as security industry evolves – 2 August 2021
Following recent high profile cyber-attacks, cyber security has become a top-of-mind issue for many CEOs and COOs. The nation’s $6 billion security industry is expected to grow 3 per cent a year over the next five years. The growth is part of shifts in the industry towards a more tailored, integrated and risk-based approach, where human capital is combined with the latest technology to provide more effective and compliant security solutions.
Immense Support Shown for Whistleblowers at Historic Three-Day Event – 2 August 2021
National Whistleblower Day 2021 was the largest gathering of whistleblower supporters in history, and stretched across three days. Day one focused on global whistleblowers and the urgent need for countries to adopt effective whistleblower laws and protections. Panels included experts from Australia and the United Kingdom, as well as industry whistleblowers.
https://www.natlawreview.com/article/immense-support-shown-whistleblowers-historic-three-day-event
Former Weston Creek Children’s Centre director Emma Morton now facing 80 fraud charges – 2 August 2021
Emma Morton is accused of stealing money from the Weston Creek Children’s Centre. Ms Morton allegedly made payments from the centre’s bank account into her own.
It is the second time more charges have been laid against Ms Morton, who is now accused of 80 counts of fraud.
The sophisticated scam that cost Julia $100k – 3 August 2021
There have been about 7,000 reports of remote access scams this year, according to the ACCC’s Scamwatch, with more than $8 million lost. This is Julia’s story and how she lost 100k.
https://www.abc.net.au/everyday/losing-to-remote-access-scam/100334824
Directors Under Pressure – New Australian Standard In Play – 3 August 2021
Standards Australia published their new guide to “Fraud and Corruption Control” (Australian Standard AS8001:2021) in June, their first significant update in the area since 2008. The Standard is intended to apply to all organisations operating in Australia, both for-profit and not-for-profit.
In recognition of the new cloud-based infrastructure, organisations must now plan to prevent, detect, and respond to external attacks, particularly cyber attacks. The act also provides new guidance on the accountabilities of boards and senior management in controlling organisational fraud and corruption risk.
https://which-50.com/directors-under-pressure-new-australian-standard-in-play/
Nephew allegedly distributed $1.3 million in fraud proceeds for Michael Ibrahim – 3 August 2021
A nephew (Abraham Sayour) of drug kingpin Michael Ibrahim, has been charged for his handling of $1.37 million in an alleged fraud and money laundering scheme, led by construction boss George Alex. It is alleged that Mr Sayour used two bank accounts to receive and distribute funds, from a scheme using labour hire and payroll companies, to siphon money that should have gone to the Australian Taxation Office.
Michael Gunner confirms investigations underway into alleged misconduct within territory’s ICAC – 3 August 2021
Multiple investigations are underway into allegations of misconduct within the Northern Territory’s anti-corruption watchdog. The investigations follow a series of exclusive Sky News stories, that detail complaints about the handling of conflicts of interest in the Office of the Independent Commissioner Against Corruption, and other allegations about the leaking of confidential information.
Bill Papas suffering from ‘extreme anxiety’ after getting sued by Westpac – 4 July 2021
Article provides an update on Bill Papas and the alleged long running and calculated and elaborate fraud against several banks in excess of 400 billion.
https://www.abc.net.au/news/2021-08-05/bill-papas-westpac-extreme-anxiety-assets-fraud/100327992
Number of investment scams soars during COVID pandemic – 4 August 2021
ASIC has revealed that the number of investment scams reported during the COVID-19 pandemic has “increased dramatically” since pre-pandemic. It is believed the increase in scams is due to more people spending time online during lockdowns, while over 75 per cent of reports were related to crypto-asset scams.
Investigation & Fraud News – Week ending 30 July 2021
12 stories this week:
Melbourne couple sentenced to prison for $54,000 COVID-19 fraud – 24 July 2021
A man and woman living in Melbourne have been sentenced to prison over a series of fraudulent COVID-19 Pandemic Leave Disaster Payments (PLDP), totalling $54,000
Who is Bill Papas, the man at the centre of Westpac’s ‘elaborate fraud’ allegations? – 24 July 2021
Westpac, Societe Generale and Sumitomo are said to have lost $400m due to alleged fraud by the Sydney businessman Bill Papas from Forum Finance. Westpac has now obtained freezing orders from the Federal Court and is trying to track down and seize any properties Mr Papas may own across the world.
Forum Group: The entity at the centre of staggering $400m fraud allegations is “open for business”https://greekcitytimes.com/2021/07/27/forum-group-the-entity-at-the-centre-of-staggering-400m-fraud-allegations-is-open-for-business/
Australians more gullible than most for tech support scams – Microsoft Survey – 26 July 2021
Australians are more likely than any other nation (except India) to be victims of tech support scams because we are an affluent target. A Microsoft report shows 31% of Australian Millennials (aged 24-37), 30% of Gen Xers (aged 38-53) and 16% of Gen Zers (aged 18-23) were the most susceptible and continued tech support scam interaction. 61% of these were males.
Growth at what cost? How CEOs of Australian banks are incentivised to take risk – 27 July 2021
The Monash University research team identified a direct link between ASIC investigating or penalising a company, and the way CEOs are paid. A recent study is among the first to directly link CEO incentive pay to adverse firm events such as fraud and money laundering of Australian banks. The research found that adverse firm events are 42% more likely to occur when the majority of CEO pay comprises stock options and shares.
When the fixer from Wagga met the conmen from Shanghai – 28 July 2021
An ABC investigation unravels how the former MP (Daryl Maguire) did favours for Mr Liu’s company, which allegedly swindled vast sums from Australians and became embroiled in a devastating international fraud.
New ASIC chair Joseph Longo warns about unregulated cryptocurrency trading and other economic threats to pandemic recovery – 29 July 2021
New ASIC boss Joseph Longo’s focus is helping people and businesses through COVID and shutting down pandemic scams. He is particularly worried about unregulated cryptocurrency investments and scams. Mr Longo says decisions to prosecute are ultimately up to the Director of Public Prosecutions.
ATM skimmers fleece millions from Melbourne bank customers – 29 July 2021
Police have released images of five men believed to be linked to an international ATM skimming scam, that has fleeced millions of dollars from Melbourne bank customers this year. At least 28 machines around Melbourne have been compromised since March, in an elaborate scheme believed to have links to Eastern European crime gangs.
(Access to the digital version of the Age required to read article.)
Premier’s office was warned about Maguire’s business associate two years before corruption inquiry – 29 July 2021
Businessman, Jimmy Yang, is accused of widespread fraud and entangled in a financial scam that took $46 million from more than 900 retirees.
https://www.abc.net.au/news/2021-07-29/premier-s-office-warned-of-liu-and-uwe-in-2018/100312594
Maptek founder accused of $38.5m tax fraud – 30 July 2021
The 74-year-old Adelaide-based mining tech entrepreneur Bob Johnson, has been charged with hiding overseas assets over 15 years to avoid $38.5 million in income tax. The Australian Federal Police (AFP) will allege that Dr Johnson failed to disclose overseas trust assets in his income tax returns, in an effort to evade income tax in Australia between 1999 and 2013.
https://www.accountantsdaily.com.au/tax-compliance/15989-maptek-founder-accused-of-38-5m-tax-fraud
ASIC sues AMP companies over fees for no services allegations – 30 July 2021
ASIC has commenced Federal Court proceedings against six companies that are, or were, part of AMP Limited (ASX: AMP), alleging the entities charged fees for no service on 1500 corporate superannuation accounts.
High-flying accountant with multiple Block properties jailed over ‘calculated’ GST fraud – 30 July 2021
David Brandi, a wealthy accountant and property-owner, whose purchased homes from ‘The Block’ and a high-profile nightclub, learned his fate in the County court, over a complex GST fraud committed more than 10 years ago. It is alleged that he ended up pocketing $135,248.67 in false GST refunds in statements lodged with the ATO.
Investigation & Fraud News – Week ending 16 July 2021
13 stories this week:
SAPOL search uncovers stash of fake driver’s licences – 16 July 2021
An ongoing SA Police investigation into identity theft has seen four alleged offenders arrested after a search of a home uncovered more than 100 fake or stolen licences, health and bank cards, along with amounts of amphetamine and drug paraphernalia.
Bigwig in the big house: Ex-education boss jailed for school funds rorts – 16 July 2021
Former Education Department chief Nino Napoli, is in prison after being jailed this week after he and family members defrauded school funds in calculated rorting over a period of seven years. Napoli approved fake invoices and dodgy contracts totalling $500,000 by concealing his connections to relatives’ businesses, and either used department money or directed banker schools to pay invoices.
Are you ready for the Fraud & Corruption Control changes? – 16 July 2021
Adam Simms Partner, Forensic Services, was invited to be part of the review of the existing Standard and gives us insights into the new Australian Standard AS8001:2008 – Fraud & Corruption Control that was released on 11 June, 2021. This Standard is considered the benchmark when it comes to how organisations can mitigate fraud and corruption risks. This Standard is of particular importance to Boards, and importantly how they assess their cyber risks.
Revealed: Alleged Westpac fraudsters in multimillion-dollar property binge – 16 July 2021
The alleged $360 million fraud by Bill Papas’ Forum Finance against Westpac has been described by a judge as “a long-running, calculated and elaborate fraud which would rank high in the catalogue of corporate misfeasance”. The fraud is alleged to have been conducted between 2018 and 2021.
Whistleblower alerted Forum auditors to potential fraud
An internal whistleblower at the Forum Group of Companies emerged within two weeks of Westpac contacting Bill Papas about anomalies regarding a contract with corporate client WesTrac.
No AMP heads on pikes after ASIC drops criminal probe – 17 July 2021
ASIC drops criminal investigation into AMP’s fees for no services scandal after the Commonwealth Director of Public Prosecutions found the case should not be taken to court.
https://www.afr.com/companies/financial-services/asic-scraps-amp-criminal-action-20210716-p58a8p
(Access to digtal version of SMH/AFR required to read this article.)
Aussie crypto mogul fights extradition to the US – 17 July 2021
Australian bitcoin mogul Greg Dwyer is fighting extradition to the United States from his home in Bermuda even after his co-accused in one of the world’s biggest cryptocurrency scandals have presented themselves to US authorities.
(Access to digtal version of SMH required to read this article.)
ClubsNSW seeks court order to stop pokies whistleblower speaking to media – 17 July 2021
ClubsNSW is aiming to stop pokies whistleblower Troy Stolz talking to the media about a case the lobby group is mounting against him, in the federal court. The move is a dramatic escalation in the legal fight between the powerful lobby group and Troy Stolz, its former anti-money laundering and counter-terrorism financing manager.
Scamwatch: Remote access scams increase 184 per cent – 19 July 2021
So far this year scammers have stolen more than $7.2 million from Australians by gaining access to home computers, an increase of 184 per cent compared to the same period last year. Australian Community Media has compiled a list of current scams identified on sites such as scamwatch.gov.au, www.cyber.gov.au and the Australian Competition and Consumer Commission’s website dedicated to informing people about fraudulent and dishonest activities.
Ex-Young Rich Lister Craig Gore loses fraud appeal = 21 July 2021
Craig Gore, who once owned a race car team and shone briefly as a Gold Coast developer, had lawyers file an appeal against a verdict that found he had swindled investors in a debenture scheme. They included everyday Australians setting up self-managed superannuation funds.
A key event in the guilty verdict centred on evidence of Gore’s knowledge of the business having a substantial debt owed to the ATO.
(Digital version of AFR required to read article.)
Westpac accuses Forum and Papas of 100 frauds – 22 July 2021
The details of the extent of Mr Papas’s fraud were detailed in a statement of claim filed by the bank this week against Mr Papas, his business partner Vincenzo Tesoriero, Forum Finance and its related companies.
AMP sexual harassment victim left fuming from Boe Pahari’s $50m payout – 22 July 2021
A sexual harassment victim (Julia Szlakowski) is furious after Boe Pahari who allegedly made inappropriate advances and drove her out of the company is set to get a $50 million “golden parachute” payout.
Firms ‘face extinction’ for failing women – 22 July 2021
Ms Szlakowski has called on companies and investors to “conduct themselves within the moral and ethical norms of their customer base, or rightly risk extinction”.
