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Investigation & Fraud News – Week ending 9 July 2021
12 stories this week:
ASIC warns about social media-driven ‘pump and dump’ scams – 2 July 2021
“Pump and dump” is a scam in which criminals artificially inflate the price of a stock, by promoting fake news or positive depictions of a company, in order to increase trading and profit by later selling the inflated shares. Melbourne trader Gabriel Govinda has appeared in the Magistrate’s Court faced with 23 charges of market manipulation and 19 charges of illegal dissemination of information.
Westpac alleges football tycoon’s firm engaged in $200m fraud – 2 July 2021
Federal Court proceedings have been filed against ‘Forum Finance’, after the discovery of allegedly fraudulent activity of $200 million involving a finance company controlled by the owner of the Sydney Olympic Football Club, Bill Papas.
‘Long-running, calculated and elaborate fraud’: Firm at the centre of Westpac scandal to be wound up – 9 July 2021
Dirty money: How the banks and AUSTRAC are fighting back against financial crime – 2 July 2021
Financial crimes watchdog AUSTRAC raised concerns about NABs compliance this week, as the financial industry is confronted with complex anti-money laundering, as criminals become more and more sophisticated.
Black Hats, tax havens: Australia’s biggest insider trading probe revealed – 3 July 2021
A questionable transfer of Nuix shares to Stephen Doyle’s Swiss-based brother Ross, is now part of an ASIC investigation into whether the family, may have pulled off one of the country’s biggest insider trading heists, using companies in offshore tax havens to disguise their tracks.
Senior cardinal, 9 others, face Vatican fraud tri – 3 July 2021
An influential Cardinal Angelo Becciu and nine others will be tried over alleged financial wrongdoing linked to the purchase of a plush London property. Becciu will be prosecuted over embezzlement, abuse of power and witness tampering.
https://au.news.yahoo.com/senior-cardinal-9-others-face-114840738.html
The Trump Organization has been charged with tax fraud. What could that mean for the former president’s company – 4 July 2021
Former US president Donald Trump’s company was hit with charges of criminal tax fraud this week, with allegations it helped executives cheat their own taxes.
https://www.abc.net.au/news/2021-07-04/donald-trump-organization-tax-fraud-charges/100266220
Alleged fraudster moved $8 million of clients’ money through Crown casino – 5 July 2021
Crown Resorts has called an immediate inquiry into claims an alleged fugitive corporate fraudster (Michael Gu) laundered millions of dollars through its Melbourne casino. Mr Gu then either withdrew the money or used it for gambling.
‘I smell a rat’: Westpac alleged fraud leaves trail of forged signatures, false documents – 6 July 2021
Westpac says at least seven major corporate customers including Coles, Woolworths, Veolia and WesTrac have been caught up in an alleged fraud involving fake invoices and forged signatures that could cost the bank more than $290 million.
Prison disciplinary hearings held ‘in the dark’ with little transparency – 7 July 2021
Victoria’s Ombudsman has found that prisoners were denied basic procedural fairness, because there was no formal requirement for written reasons for decisions and no internal review processes in place.
5 giveaway signs of stock market scams and how to avoid them – 7 July 2021
The Australian Competition and Consumer Commission’s (ACCC) Scamwatch reported recently that last year alone, Australians lost $176.1 million to scams, up by almost 23 per cent in 2019. Article details how investors spot stock market scammers and, more importantly, how to avoid them.
https://www.nestegg.com.au/save-money/scams/5-giveaway-signs-of-stock-market-scams-how-to-avoid-them
Family Court judge resigns amid sexual harassment investigation – 8 July 2021
Joe Harman a Family Court judge, based in Parramatta has resigned after an independent investigation found that he had sexually harassed two junior female court staff and had a history of breaching protocol. https://www.lawyersweekly.com.au/biglaw/31872-family-court-judge-resigns-amid-sexual-harassment-investigation
Investigation & Fraud News – Week ending 3 July 2021
10 stories this week:
Not-for-profit fraudster tells court she was catfished by American soldier – 24 June 2021
A mother-of-two who stole almost $150,000 from a community not-for-profit while employed as a financial controller and coordinator, says she was being catfished by a fake American soldier who romanced her online.
Pyrmont penthouse owned by former Nuix CFO raided in criminal probe – 24 June 2021
The Australian Federal Police raided the offices of Macquarie-backed tech group Nuix as well as an apartment, following the launch of a criminal investigation by ASIC. The subjects of the probe are the recently departed Nuix chief financial officer Stephen Doyle, 50, and his Swiss-based brother Ross.
(Access to SMH digital version required to read article.)
NT ICAC makes improper conduct findings over Darwin Turf Club grandstand grant – 25 June 2021
The Northern Territory’s anti-corruption watchdog has made findings of “improper conduct” against the Chief Minister’s former chief of staff, three members of the Darwin Turf Club and a company director over a $12 million government grant for a new grandstand.
What The Heck Is A Crypto Tumbler And Is It Even Legal? – 28 June 2021
A cryptocurrency tumbler – also known as a crypto mixer or crypto mixing service – is a paid service in which you can mix potentially traceable coins (for example, stolen coins) with other, clean coins in an effort to make it harder to trace them. There are no specific laws that prohibit cryptocurrency tumbling. However, using a cryptocurrency tumbler to conceal other illegal activity could still land you in hot water.
https://www.gizmodo.com.au/2021/06/cryptocurrency-tumblers-mixers-explained/
Trump family business may face charges – 28 June 2021
Legal attorneys are investigating “possibly extensive and protracted criminal conduct” at the Trump Organisation, including tax and insurance fraud, falsification of business records and corporate perks and gifts.
https://thewest.com.au/news/crime/trump-family-business-may-face-charges-c-3245432
Crypto scam losses rocket to record high – 28 June 2021
Investment scams of all types are on the rise. Money lost to scams involving bitcoin since the start of this year already equal the entire losses of 2020. The Australian Competition and Consumers Commission (ACCC) had $176 million in losses reported to it during 2020. In 2019, losses amounted to $143 million, up from $107 million in 2018.
https://www.smh.com.au/money/investing/crypto-scam-losses-rocket-to-record-high-20210625-p584du.html
(Access financial version of SMH required to read article.)
Since 2012, Australia has become “significantly” more corrupt – 29 June 2021
Transparency International Australia chief executive Serena Lillywhite shares a range of issues, which she believes are impairing Australia’s reputation as a democracy, which actively targets corruption. We are one of the 21 nations where perceived corruption has worsened “significantly”, over the past eight years.
Melissa Caddick convinced 72 investors to hand over $23m to ‘sham’ business, court told – 29 June 2021
In Federal court, it has been revealed that Melissa Caddick faked many documents in the “quite elaborate fraud”, she used to swindle trusting investors out of more than $23m. She operated 37 bank accounts, sent investors fictitious portfolio evaluations and kept “meticulous” records. Provisional liquidators have been appointed.
Former WA director charged with multiple offences – 1 July 2021
Joanne Jennifer Pellew from Western Australia, has been charged with breaching her directors’ duties, making a false or misleading statement to ASIC and managing a corporation while disqualified.
https://www.miragenews.com/former-wa-director-charged-with-multiple-588666/
Westpac detects huge potential fraud, bank to pay compo for deficient financial advice to share traders – 2 July 2021
Westpac has uncovered “sophisticated and externally perpetrated” potential fraud, estimated at about $200m and has kicked off court action in response. The proceedings are against ‘Forum Finance’ over a portfolio of equipment leases. ASIC announced Westpac would pay $87m in compensation to former clients of its financial advisers.
Investigation & Fraud News – Week ending 25 June 2021
13 stories this week:
5 best VPN in Australia – 18 June 2021
A good article explaining Virtual Private Networks and how your network can be completely accessible to tracking and surveillance by your Internet Provider, as it is provided by them, and they ultimately host it. Article lists popular VPNS that are secure and can’t access your data.
https://bestinau.com.au/best-vpn-australia/
Bank took 8 years to report $1.4m fraud – 18 June 2021
George Vrettakos is only now facing justice after defrauding more than $1.4 million from CBA. The significant delay – caused by the Commonwealth Bank failure to report his fraud to police – may mean George Vrettakos escapes jail time.
https://www.riverineherald.com.au/national/2021/06/18/4463407/bank-took-8-years-to-report-14m-fraud
Ex-con and bankrupt advised Melissa Caddick on tax affairs – 19 June 2021
Missing fraudster Melissa Caddick, who misappropriated millions of dollars from her clients, used the services of a former bankrupt accountant (Cyril “John” Pearson) who had been banned for 10 years from managing a corporation as well as jailed for embezzling money from a superannuation fund.
(Access to digital version of SMH required to read article.)
Billionaire tax dodging exposed (just not in Australia, home of the opaque ultra rich) – 18 June 2021
For years there has been a push for greater transparency on the tax affairs of the rich who can use sophisticated tactics to minimise what they pay. This ‘push’ could potentially inadvertently reveal details of the tax affairs of an individual or entity, which would breach confidentiality laws
https://www.crikey.com.au/2021/06/18/billionaire-tax-dodging-australia/
Qld govt consults on media shield laws – 18 June 2021
Currently Queensland and Tasmania are the only states without specific media shield laws. In August, new QLD laws will mean Journalists will be protected from revealing confidential whistleblower sources. Attorney-General Shannon Fentiman has released a discussion paper on these laws.
https://thewest.com.au/business/media/qld-govt-consults-on-media-shield-laws-c-3148013
Former Australian spy Witness K spared jail time over conspiracy charges relating to alleged spying on East Timor – 19 June 2021
The former Australian spy dubbed Witness K, has been given a three-month suspended sentence, for conspiring to reveal classified information about an alleged spying operation, during oil and gas treaty negotiations, between Australia and East Timor.
https://www.abc.net.au/news/2021-06-18/act-witness-k-sentencing-hearing/100226438
We have filed a case under your name’: Beware of tax scams – they’ll be everywhere this EOFY – 19 June 2021
According to an Australian Competition and Consumer Commission report, scams targeting Australians last year cost an estimated $851 million. Posing as the Australian Taxation Office in particular has been a key vehicle for scammers to target victims, with considerable success over the years.
Scammers sending out knock-off crypto wallets that could steal your coin – 19 June 2021
Scammers have begun sending out fake hardware wallets to Ledger customers in an attempt to steal the cryptocurrency from their Bitcoin wallets.
‘Deeply disturbing’ allegations threaten to bring Toshiba to its knees – 21 June 2021
For the last six years, scandals and economic missteps have plagued Toshiba. Recently an ‘Explosive’ report critical of Toshiba’s management claimed they “devised a plan to effectively prevent shareholders from exercising their … voting rights at the AGM” and they had persuaded Japan’s trade ministry to help keep the activists at bay by exerting “undue influence on some shareholders”.
Scammers target would-be tenants as housing crisis continues – 21 June 2021
Scammers are offering fake properties to convince people to hand over money or personal information. Australians lost more than $300,000 to rental and accommodation scams in the nine months to September last year – an increase of 76 per cent compared to the same time the previous year.
https://the-riotact.com/scammers-target-would-be-tenants-as-housing-crisis-continues/470622
Former Sony Music employees consider class action lawsuit – 23 June 2021
A dozen former employees of Sony Music Australia, have approached a law firm, to investigate launching a class action lawsuit against the global music empire, following an investigation into workplace culture at the company’s Australian offices.
AFP raids Nuix office amid criminal investigation by market regulator – 24 June 2021
The Australian Federal Police raided the offices of Macquarie-backed tech group Nuix as well as an apartment in Pyrmont on Thursday following the launch of a criminal investigation by the corporate regulator.
(Access to digital version of SMH required to read article.)
ClubsNSW demands pokies whistleblower stop crowdfunding for court case – 24 June 2021
Troy Stolz turned to GoFundMe to raise money for a court battle with former employer ClubsNSW, but lawyers have demanded he take down his page and return donations or face further court action.
Investigation & Fraud News – Week ending 18 June 2021
11 stories this week:
Scope of Victoria’s Crown royal commission expanded, budget near-doubled after ‘significant’ revelations – 11 June 2021
The scope, length and budget for Victoria’s Crown royal commission has been expanded from $10m to $19.75m after ‘significant’ revelations and matters have emerged. The Victorian investigation will determine if Crown is fit to hold a gaming licence for its Melbourne casino, while a separate royal commission is doing the same for the Perth venue.
Former Mayor’s banker son-in-law sacked, charged amid fraud claims – 11 June 2021
The banker son-in-law (Andre Andrada) of a former southeast Queensland mayor has been dismissed from his senior finance position and charged by police amid allegations of fraud.
(Access to the Courier Mail required to read article.)
Crypto crackdown underway as ATO locks in data-matching program – 11 June 2021
The ATO’s cryptocurrency data-matching program, will now scrutinise cryptocurrency transactions and account information from designated service providers for a further three financial years to 2022-23. According to the ATO, the data will uncover individuals who have failed to report a disposal of cryptocurrency and the appropriate capital gain or loss in their income tax return.
Australia’s great CCTV security risk – 11 June 2021
Sydney alone has more than 60,000 increasingly sophisticated CCTV cameras. Australia’s Internet of Things (IoT) market grows, individual CCTV cameras are becoming internet-enabled which also makes them hackable. In the mind of an attacker, it means there could be 60,000 entry points through which they could attempt access.
https://www.bit.com.au/guide/australias-great-cctv-security-risk-565858
Bid to use criminal cash to refund scam victims – 11 June 2021
A survey suggests, that a policy of refunding scam victims using money from criminals’ frozen bank accounts would be popular.
https://au.news.yahoo.com/bid-criminal-cash-refund-scam-100956531.html
Financial crime task force takes aim at cryptocurrency, pandemic fraud – 12 June 2021
The peak agency looking at financial crime is preparing to crack down on cryptocurrency transactions, to head off their role in tax avoidance while also combatting efforts by criminals from using digital currency such as bitcoin to bring cash back home.
(Access To the Australian digital version required to read article.)
Sony, Sackings, Fines, now Global Bullying & Harassment Investigation – 13 June 2021
Sony is back in the headlines as global bosses finally investigate the Australian operations for questionable conduct, that has been going on for decades at the scandal ridden Company. The latest investigation follows new claims of discrimination, bullying and harassment at its Sony Music operation.
https://www.channelnews.com.au/sony-sackings-fines-now-global-bullying-harassment-investigation/
Young woman loses $150k in crypto investment scam – 13 June 2021
A 25-year-old woman’s online dating venture took an expensive turn when she was scammed out of $150,000 in a fake cryptocurrency investment.
https://news.bitcoinguide.com/2021/06/13/young-woman-loses-150k-in-crypto-investment-scam
Nuix CEO and CFO step down after disastrous IPO – 15 June 2021
Nuix announced that its CFO Stephen Doyle was being “terminated by mutual agreement.” Half an hour later, CEO Rod Vawdrey had given notice of his decision to retire. Their departures follow a joint investigation by The Sydney Morning Herald, The Age and The Australian Financial Review which exposed serious culture and governance issues, missed sales forecasts and a previous attempted coup to oust Mr Vawdrey.
Convictions of fraud and insolvent trading set aside – 17 June 2021
A founder of collapsed whitegoods supplier Kleenmaid could face a fourth trial for charges, including fraud after winning an appeal based on whether juries should consider mental health concerns.
South Australia’s Tailem Bend Netball Club loses $150,000 in online invoice scam – 17 June 2021
The Tailem Bend Netball Club has lost $150,000 in an online scam. Scammers hacked the club’s email and sent invoices to the club with incorrect accounts
