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Investigation & Fraud News – Week ending 10 November 2023
13 stories this week:
Calls for a Victorian police ombudsman to tackle ‘predatory behaviour’, after senior officer jailed for raping junior colleague – 3 November 2023
A western Victorian police officer is sentenced to four years and nine months’ jail for raping and sexually assaulting a junior colleague. An IBAC review has found “predatory behaviour continues” within Victoria Police after investigating 27 allegations of such behaviour between 2018 and 2022. Lawyer Jeremy King says internal police investigations “will never” address this issue and has called for an independent police ombudsman.
Sterling Group founder Raymond Jones faces court over collapse of retiree housing scheme – 3 November 2023
Three men involved in a failed housing scheme which left retirees across the country with huge financial losses, have appeared in a Perth court on criminal charges. The men were charged with aiding and abetting a company to engage in dishonest conduct following an investigation by the corporate watchdog.The company collapsed in 2019 and some investors lost their homes.
Inside the world of fake ad scams stealing the identities of Kochie and celebrities like him around the world – 6 November 2023
Attention grabbing photos of Celebrities are never real. It’s always a scam designed to trick you out of your money. The ACCC has taken Meta to court over the ads in Australia, alleging that the platform has engaged in false, misleading or deceptive conduct.
https://www.abc.net.au/news/2023-11-06/celebrity-crypto-scams-kochie-wilkins/103061608
Guide to White-Collar Crime in Australia – 6 November 2023
This guide by Gilbert and Tobin’s Dispute and Investigation Team, provides on corporate and personal liability, damages and compensation, plea agreements, corporate fraud, bribery, influence peddling, insider dealing, tax fraud, competition law, cybercrimes, protection of company secrets, money laundering, self-disclosure, whistle-blower protection and assessment of penalties.
https://www.gtlaw.com.au/knowledge/guide-white-collar-crime-australia
As David McBride readies himself for trial, his fellow whistleblowers have a message for the government – 6 November 2023
A group of high-profile whistleblowers who helped spark royal commissions and change laws have written an open letter to the federal government. Accusing it of overseeing a broken system that has left whistleblowers exposed to costly legal fees – and worse. It said by failing to drop the charges against Mr McBride, the government had given people reason to be wary about speaking up. Mr McBride is facing five charges, including disclosing information in breach of the Crimes Act and unlawfully giving classified information under the Defence Act.
https://www.abc.net.au/news/2023-11-06/david-mcbride-whistleblower-open-letter/103060116
‘Scam-in-a-box’: MyGov suspends thousands of accounts linked to dark web fraud kits – 6 November 2023
Thousands of MyGov accounts are being suspended each month out of concern they’ve been breached via “scam-in-a-box” kits being sold by criminals on the dark web. The products were being used to create fake websites and provide the specialist knowledge required to launch phishing attacks on Centrelink, Australian Tax Office and Medicare accounts.
Two men charged following card skimming scam in multiple states – 6 November 2023
Two men have been charged in Victoria over a $100,000 alleged card skimming racket linked to a Romanian organised crime syndicate. Police will allege the men are involved in at least 44 events of using cloned cards linked with the ‘deep skimming’ insert device, fraudulently withdrawing at least $102,000.
Bitcoin theft linked to counterfeit Ledger Live app on Microsoft Store – 6 November 2023
In a recent development, a fraudulent “Ledger Live Web3” app on Microsoft’s App store has led to the theft of approximately $600,000 in Bitcoin. The scam, tricked users into believing they were using the legitimate Ledger Live software for offline crypto storage. In spite of attempts by Cointelegraph to reach out for comments, Microsoft has not yet responded to these allegations.
Exploring the Role of Artificial Intelligence in a Retail Crime Setting with Professor Michael Townsley – 7 November 2023
This article outlines the emerging role that Artificial Intelligence (AI) is likely to play in preventing and responding to retail crime and the potential impacts of this.
Former Little Athletics Tasmania president Rhonda O’Sign avoids jail time after stealing more than $10,000 – 8 November 2023
Former Little Athletics Tasmania president Rhonda O’Sign has avoided jail time after stealing more than $10,000 from the not-for-profit. The Supreme Court in Hobart heard the stealing happened during a “chaotic period” in O’Sign’s life, and she is remorseful and embarrassed. O’Sign received a suspended sentence and was ordered to perform 140 hours of community service.
https://www.abc.net.au/news/2023-11-08/little-athletics-former-president-stealing-sentence/103074968
Mental health spiral behind ‘hare-brained’ $395m fraud – 8 November 2023
Demetrios “James” Charisiou, is facing prison for orchestrating a $395 million National Disability Insurance Scheme fraud. However he blames his “extraordinarily stupid conduct” on his mental health, which spiralled after a heart attack. He has admitted to obtaining financial advantage by deception and two document fraud charges, after he duped Korean investors into pouring bank credit into fake NDIS property deals.
https://au.news.yahoo.com/mental-health-spiral-behind-hare-054253524.html
‘Every cent of that is now gone’: Family scammed $32k after picking up phone – 9 November 2023
A Perth family has fallen prey to a sophisticated phone scam that fleeced them of $32,000. The ordeal unfolded through a series of fake bank calls and messages, culminating in a ruthless raid on their bank account within just a few hours.
0ASIC releases new alert list highlighting suspicious investment opportunities – 10 November 2023
ASIC has today strengthened its scam prevention tools to support consumers with the publication of a new investor alert list. Consumers can use this list to help inform themselves as to whether an entity they are considering investing in could be fraudulent, a scam or unlicensed. The companies, businesses and websites on this list may be targeting Australian consumers; do not hold a current Australian financial services (AFS) licence or Australian credit licence from ASIC; and are not allowed to offer investments in Australia. This list is provided as a warning to potential investors and is regularly updated. https://asic.gov.au/about-asic/news-centre/find-a-media-release/2023-releases/23-296mr-asic-releases-new-alert-list-highlighting-suspicious-investment-opportunities
https://moneysmart.gov.au/check-and-report-scams/investor-alert-list
Investigation & Fraud News – Week ending 3 November 2023
12 stories this week:
Queensland woman caring for sick husband warns of elaborate employment scam after losing savings – 29 October 2023
A Queensland woman has lost her life savings in an elaborate online employment scam targeting vulnerable people looking for online work. She was falsely employed and manipulated by the scammers for about three weeks and lost $15,473. Financial Services Minister Stephen Jones says the National Anti-Scams Centre has reported an increase of more than 740 per cent in employment scams in 2023, with losses since January this year reaching $20 million.
Queensland public sector whistleblowing laws need a new act – 30 October 2023
Queensland’s public sector whistleblowing legislation has come under the spotlight, prompting a recent review by Alan Wilson KC. The report outlines 107 recommendations which advocate for a transformative shift, specifically the introduction of a new act to replace the existing Public Interest Disclosure Act 2010 (PID Act).
https://www.themandarin.com.au/233498-queensland-public-sector-whistleblowing-laws-need-a-new-act/
Robyn and Ashley Garratt face court for allegedly defrauding York Community Resource Centre – 30 October 2023
A prominent Wheatbelt couple have faced court charged with defrauding the York Community Resource Centre (York CRC). Robyn Garratt was charged with five counts of fraud by forgery and two counts of stealing as a servant. She has now had six additional charges added by police after a follow-up search warrant. Mr Garratt is facing two charges relating to the same investigation – one of benefiting from fraud and one of property laundering.
Sam Bankman-Fried, former cryptocurrency billionaire, has testified at his fraud trial. Here’s what he said – 31 October 2023
Former billionaire Sam Bankman-Fried is currently standing trial for fraud in New York. He is accused of stealing billions from his cryptocurrencycustomers, to pay the bills for his other ventures. The key moments from his testimony are outlined in this article.
High-ranking Tasmanian public servants named under parliamentary privilege over potential misconduct allegations – 31 October 2023
An independent MP (Meg Webb) has used parliamentary privilege to name 22 current and former Tasmanian public servants the commission of inquiry into child sexual abuse may have levelled allegations of misconduct against. Ms Webb said the commission “made it clear” that because it had been blocked by “legislative impediments and calculated legal wrangling on the part of the state, it was not able to finalise the apparently intended adverse findings and findings of misconduct”.
Unlicensed builder Mark Anthony Webster sentenced to jail for defrauding victims out of more than $600,000 – 1 November 2023
An unlicensed builder has been sentenced to seven and a half years in prison for taking more than $600,000 from clients and spending it on the pokies. Mark Webster was contracted to complete shop fit-outs for restaurants and retail stores after responding to ads online. He used aliases and would provide clients with a false business name, ABN and QBCC registration number. He was given a non-parole period of two years.
https://www.abc.net.au/news/2023-11-01/mark-anthony-webster-builder-fraud-sentence/103046188
Man, 81, faces court accused of stealing more than $900K meant for superannuation, investments and loan – 1 November 2023
An 81-year-old Hackham man has been accused of stealing hundred of thousands of dollars from people, who thought they were putting money into their superannuation funds and other investments. Robert Wayne Collins is charged with 10 counts of aggravated theft and one of aggravated dishonest dealing. Police allege he stole more than $900K intended for investments, superannuation and a loan.
https://www.abc.net.au/news/2023-11-01/robert-wayne-collins-accused-stealing-over-900k/103048036
The basic check banks aren’t doing to prevent scams – 1 November 2023
Most Australian banks don’t check that BSB and account numbers match the name of the account customers are sending money to. Account name matching is a basic anti-scam measure that has blocked many fraudulent transactions in other countries. In July 2022, the ACCC called on the banking sector to establish an industry-wide account name checking system, but that has yet to happen.
https://www.choice.com.au/money/banking/everyday-banking/articles/bank-account-name-matching
ASIC removes thousands of scam pages in takedown blitz – 2 November 2023
More than 2100 investment scam websites purporting to offer high-risk products like crypto assets and FX derivatives have been removed since July, the Australian Securities and Investments Commission revealed, with around 20 dodgy websites taken down per day.
Romance scam behind $228m Chinese money laundering ring – 2 November 2023
A $228 million Chinese money laundering syndicate was allegedly linked to a romance investment scam run by an organised crime network. The company, which operates 12 retail shopfronts across Australia, is accused of being used as a front to transfer money to illegitimate customers and conceal about $228 million from regulators. The syndicate allegedly funnelled money into bank accounts set up in the names of relatives and associates, the court was told, with seven people arrested last week over their alleged involvement.
Trial hears of alleged indecent assault, toxic culture at regional WA prison – 3 November 2023
A two-day trial in a regional WA court, heard damning allegations of bullying, harassment and toxic workplace culture at multiple WA corrective services facilities. A woman allegedly indecently assaulted a female colleague at a regional prison last year. The accused says she has been a victim herself, at the prison and another work site.
https://www.abc.net.au/news/2023-11-03/regional-prison-indecent-assault-toxic-culture/103048436
Letter from Melbourne lawyer John Adams reveals operation of alleged mortgage Ponzi scheme – 3 November 2023
The ABC has obtained a letter showing in 2019 John Adams who passed away suddenly at the age of 81 last month, was offering investors returns about eight times those offered by banks for term deposits. Mr Adams’s business partner of almost 50 years, Shane Maguire, alerted authorities to the potential fraud. The Victorian Legal Services Commissioner is working with police, to investigate whether Mr Adams misappropriated funds invested in the mortgage lending scheme, he operated out of his firm’s Ivanhoe office for more than 40 years.
Investigation & Fraud News – Week ending 27 October 2023
13 stories this week:
Harmful or Harmless? What We Know About Electronic Partner Surveillance – 20 October 2023
Electronic partner surveillance means using technology to monitor a romantic partner’s activities. Partner surveillance is often considered an expression of jealousy, insecurity, and distrust. Yet many partners engage in surveillance for practical or caring motivations. Article explains that Electronic surveillance should only be used in ways that respect both partner’s autonomy and privacy.
Man pleads guilty to fraud after using stolen money to lure international cricket players to Australia – 20 October 2023
Navishta Desilva, has reportedly defrauded his employer of nearly AUD 250,000. He stole money to bankroll a suburban cricket competition featuring some of the sport’s biggest names and could face jail. He has pleaded guilty to obtaining financial advantage by deception in a bid to put on T20 cricket tournaments featuring high-profile international players.
Google feature Dark Web can reveal which of your personal details have been exposed online. Here’s how to use it – 20 October 2023
Google has introduced a feature which can pin-point which of your personal information has been leaked to the dark web. The special feature used to only be available to Google One subscribers for a fee, but is now accessible to Gmail account holders and Android phone users. This article explains.
Seven people charged over international money laundering and drug rin – 21 October 2023
Seven people have been charged over an alleged international money laundering and drug ring operating out of New South Wales. A 37-year-old man in Vietnam was allegedly found to be converting large sums of money to cryptocurrency for allegedly organising drugs supply in NSW.
Little Athletics Tasmania president stole fundraising money and rigged Thermomix raffle, court hears – 24 October 2023
A former president of Little Athletics Tasmania has pleaded guilty to stealing more than $10,000 from its fundraising account. In February 2019, Rhonda Ruth O’Sign was queried over several transactions and admitted she had used the account inappropriately. She resigned and reported to police.
Former Victorian MP Russell Northe sentenced to jail for misconduct while in public office – 25 October 2023
Former Victorian MP Russell Northe has been jailed for using more than $170,000 of public money to gamble on sports betting apps. Northe was charged with 45 offences in 2022 after an investigation by IBAC.
Fraud Unit charge man following investigation into fraudulent finance applications worth over $2m – 25 October 2023
Fraud Unit detectives have charged a man and executed four search warrants as part of an investigation into allegedly fraudulent finance and loan applications under Strike Force Onsite. It is alleged that the syndicate applied for fraudulent finance applications to at least three companies to the value of $2,147,535.00.
Scam recruiters dupe vulnerable jobseekers out of $20m – 25 October 2023
Scammers posting fake job offers and impersonating recruiters duped jobseekers out of $20 million this year, an “alarming” 740 per cent increase on last year, the government says. The scammers target vulnerable groups such as students looking for part-time work, people seeking side jobs and those from different cultural or linguistic backgrounds.
Corruption claims – 26 October 2023
Allegations of corruption and forgery were aired at the civil trial over allegations of unfair dismissal by NAAJA’s former CEO Priscilla Atkins. Ms Atkins has alleged she was dismissed after raising complaints of corruption against Ms Rosas and NAAJA’s chief financial officer Madhur Evans. https://www.abc.net.au/news/2023-10-23/nt-former-naaja-priscilla-atkins-wongful-dismissal-trial/103009676
Cameron Blaine, who helped rescue Cleo Smith, focus of Corruption and Crime Commission misconduct probe – 26 October 2023
A Western Australia’s Corruption and Crime Commission report has found that a senior police detective who helped rescue Cleo Smith, leaked confidential police information about the little girl’s kidnapping to a young journalist he was seeing.
Melbourne man charged for helping launder tens of millions from cybercrime victims – 26 October 2023
The AFP has charged a Chinese national for allegedly using an Australian-based crime syndicate to help launder $100 million stolen from victims who invested in a global investment scam. The Melbourne man, 37, is the seventh person charged under Operation Wickham, a joint operation between the AFP and the United States Secret Service (USSS).
ASIC fails to prosecute a single builder suspected of insolvent trading, despite ‘devastating’ impact on home owners – 26 October 2023
The latest figures show three in four construction that folded in the 2021-22 financial year alone were suspected of insolvent trading, according to initial reports lodged by external administrators with ASIC. Despite the figures, an ASIC spokesperson admitted no criminal or civil action had ever been taken against a builder or construction company director in Australia over the misconduct. A parliamentary inquiry is currently scrutinising whether ASIC is slow to act and failing to protect “ordinary Australians”
FTX founder Sam Bankman-Fried testifies without jury – 27 October 2023
FTX founder Sam Bankman-Fried has testified at his fraud trial outside the jury’s presence, that lawyers at his now-bankrupt cryptocurrency exchange were involved in key decisions at the heart of the case. Accused of stealing billions of dollars from unwitting customers, Bankman-Fried has pleaded not guilty to two counts of fraud and five counts of conspiracy. If convicted, he could face decades in prison.
Investigation & Fraud News – Week ending 20 October 2023
10 stories this week:
Kathy Jackson was hailed as a whistleblower against union corruption – until one man revealed her secrets – 14 October 2023
Health Services Union whistleblower Kathy Jackson was heralded as ‘a lion of the union movement’ after revealing two union bosses had misused funds. One, Michael Williamson, was a former Labor Party president and the other, Craig Thomson, was a government MP. But she too was later found to be a fraudster who had misappropriated hundreds of thousands of dollars in union members’ money.
Police charge prominent York woman with defrauding WA community resource centre – 17 October 2023
Robyn Garratt, a woman from Western Australia’s Wheatbelt region has been charged with misappropriating funds from a small town’s community resource centre. She has been charged with five counts of fraud by forgery and two counts of stealing as a servant. The centre went into voluntary administration in July, citing financial troubles
Misconduct crackdown: Victoria to establish integrity commission investigating MP misconduct – 17 October 2023
https://www.abc.net.au/news/2023-10-17/victoria-to-establish-integrity-commission/102988678
Man charged with 140 financial fraud related offences to the value of nearly $750,000 – Strike Force Meckiff – 18 October 2023
A man will face court, charged by Financial Crimes Squad detectives following an investigation into 140 alleged financial fraud related offences under Strike Force Meckiff. Between April and June 2023, police will allege the company submitted fraudulent finance applications on behalf of 79 customers for the purchase of solar panels to the value of $747,308 – without customers’ knowledge.
Treasurer calls for government agencies to improve cyber security after Super SA breach – 18 October 2023
The South Australian government says data belonging to a significant number of people has potentially been accessed through a cyber security breach. The hackers stole data from a call centre previously contracted by Super SA – a dedicated superannuation fund for state government employees.
https://www.abc.net.au/news/2023-10-18/sa-government-cyber-security-breach/102993794
Carpet F-bomber: ASIC deputy’s explosive tirade – 20 October 2023
The corporate regulator investigated its deputy chair Karen Chester over her expenses, as well as alleged expletive-laden tirade to a colleague in wake of questions about the claims.
Access to the digital version of the Australian required to read article
Three Chinese nationals sentenced in Adelaide after using stolen details from phishing scam – 18 October 2023
Three men were found to have downloaded stolen credit card details, which had been uploaded to the dark web. 28 Victims had their personal information compromised to the phishing scam linked to the 2022 Optus data breach and lost 26,000.
https://www.abc.net.au/news/2023-10-18/sa-chinese-nationals-stolen-information-fraud/102993490
‘Digital kidnapping’ scam becoming more sophisticated, as three cases detected in Sydney this month – 18 October 2023
International students in Sydney are being coerced into moving interstate and overseas as part of what police say are “virtual kidnapping” (faking own kidnaping) scams that are becoming increasingly sophisticated. The victims were ordered to pay up to $500,000 or face being deported to China, where they are told they have been implicated in a crime.
Former Donald Trump lawyer Sidney Powell pleads guilty in Georgia election interference case – 20 October 2023
Sidney Powell, a former lawyer for Donald Trump has pleaded guilty to aiding the former US president’s efforts to overturn his election defeat in the state of Georgia, agreeing to testify against him if called. Prosecutors allege Ms Powell conspired with others to access election equipment without authorisation.
Corruption and Crime Commission investigating ‘serious misconduct’ allegations in Cleveland Dodd’s Unit 18 death – 20 October 2023
WA’s Corruption and Crime Commission is investigating an allegation of serious misconduct following a teenager’s death a week after he was found unresponsive inside his cell at a problem-plagued prison unit. Cleveland Dodd, 16, died at Sir Charles Gairdner Hospital, a week after he attempted to take his own life while inside Unit 18, a hardened detention facility for juveniles in an isolated part of adult maximum security Casuarina prison.
https://www.abc.net.au/news/2023-10-20/corruption-crime-commission-unit-18-teenager-death/103002150
