15 stories this week:
Golf Course Developer Ensnared in Tax Scandal – 9 February 2024
Hightrade Group executive Li Zhang has been sentenced to 10 years in prison, for conspiring with the intention to cause a loss to the Commonwealth of $ 15 million. The fraud involved the use of multiple related companies that grossly inflated construction costs between themselves, and ultimately failed to remit the GST to the ATO. There were also claims of company purchases that simply didn’t exist.
https://www.miragenews.com/golf-course-developer-ensnared-in-tax-scandal-1170951/
Crypto-based product needs financial services licence, says Federal Court – 10 February 2024
The Federal Court has ruled that the fintech firm Block Earner must possess a financial services licence to offer its cryptocurrency-backed product. This landmark judgment marks one of the initial applications of financial services law to crypto-based products, with the court determining that Block Earner had been providing financial services without a licence and had operated an unregistered managed investment scheme.
Banks Come Together to Deploy Facial Recognition and Behavioral Biometrics Against Fraud – 10 February 2024
In a decisive move against the rising wave of scams, Australian banks have joined hands to launch the Scam Safe Accord, which is an initiative introducing mandatory biometric checks for new account openings. The collaborative effort involves a coalition of major commercial banks and customer-owned banks, collectively committing to a robust defence against scammers.
Crossbench backs financial rewards for whistleblowers – 12 February 2024
Whistleblowers could receive multimillion-dollar rewards for disclosing corporate and government wrongdoing under a plan being advocated by crossbench politicians, lawyers, academics and transparency bodies. Establishing a reward scheme is one of 10 design principles underpinning a Whistleblower Protection Authority, Attorney-General Mark Dreyfus is being urged to establish, in the government’s next tranche of reforms.
Man charged with murder and fraud in connection with death of former councillor – 12 February 2024
Sakander Hussain has been charged with murder and fraud in connection with the death of a former councillor in Birmingham.
https://au.news.yahoo.com/man-charged-murder-fraud-connection-172312731.html
Vida thought ‘Graeme’ was a real, genuine man. She lost $32,000 in an elaborate romance baiting ‘pig butchering’ scam – 12 February 2024
Sydney single mum Vida* thought she’d met a lovely, genuine man on the dating platform. Two weeks later, she was scammed out of $32,000 – all borrowed funds from family and friends. The type of scam goes by the brutal term ‘pig butchering’. Its name from the concept of fattening up an animal for slaughter. https://www.abc.net.au/news/2024-02-12/pig-butchering-romance-crypto-scam/103400910
https://www.scamwatch.gov.au/news-alerts/scam-alert-online-dating-and-investment-scams
Small licensees not immune from ASIC surveillance – 12 February 2024
Smaller licensees should be aware that they are just as much on ASIC’s radar as their larger counterparts as increased data and technology means the regulator has greater transparency than ever, according to a compliance expert.
Superannuation scams are costing Australians millions. Can we stop them? – 12 February 2024
Super scams are on the rise and can be devastating for those impacted but not all super funds thoroughly check ID, even for high-risk actions like moving super into a new fund. Super Consumers Australia says the government should introduce an anti-scam code for funds to follow, to help protect people from costly scams.
Australian consumer groups pushing hard as government develops scam regulatory framework – 13 February 2024
Australian consumer groups and community legal centres are pushing for reimbursement to be included in the scam regulatory framework, currently being developed by the government. They also want rules requiring banks to be more proactive in telling victims about recovery processes, and an obligation to report all confirmed scams.
Australia Moves To Tackle ‘Doxxing’ After Jews Targeted – 13 February 2024
Australia has promised new laws to prohibit “doxxing” — the malicious publication of private details online — after hundreds of Jewish Australians had personal information spread across the web. Prime Minister Anthony Albanese said he had asked for legislation to be brought forward as part of a broader reform of privacy laws.
https://www.barrons.com/news/australia-moves-to-tackle-doxxing-after-jews-targeted-c781e6b0
150 tax office staff investigated over $2 billion social media fraud – 13 February 2024
Up to 150 Australian Taxation Office staff have been investigated for suspected involvement in a social media scam that ripped off $2 billion. The ATO workers were investigated as part of Operation Protego, set up to target people who benefited from fake GST refunds. Social media videos also offered advice on how people could claim more money through GST refunds. Since the operation was set up, more than $2 billion has been reclaimed by the tax office, while a further $2.7 billion was stopped from being transferred just before payment was made. https://www.sbs.com.au/news/article/150-tax-office-staff-investigated-in-2-billion-social-media-fraud/fq8doz78b
ASIC permanently bans Yanchep adviser for fraud – 14 February 2024
ASIC has issued two permanent bans against financial adviser Mark Raymond Sebo due to fraud convictions, specifically for stealing funds from his clients’ superannuation accounts. Sebo, formerly the director of Platinum Perpetual Global Private Wealth, was found guilty on 36 counts of theft under the Criminal Code WA.
William Wheatley: Australian Federal Police officer accused of pocketing missing cryptocurrency fortune – 14 February 2024
A federal police officer has appeared in court accused of pocketing a cryptocurrency fortune allegedly seized from an online drug-trafficking ring. He has been accused of theft, dealing with property suspected to be the proceeds of crime, and using information to dishonestly benefit himself.
Whistleblower reform | New report offers suggested blueprint for a central Whistleblower Protection Authority – 14 February 2024
Transparency International, the Human Rights Law Centre and Griffith University have released a joint report outlining ten design principles to inform the establishment of a (proposed) new, Whistleblower Protection Authority (WPA). These are outlined in this paper.
https://www.lexology.com/library/detail.aspx?g=ac5b5dbe-6da3-4d65-96fc-931ada67d7f2
Former South Asian centre president accused in $360K fraud, police say – 15 February 2024
The Windsor Police Service has charged the former president of the South Asian Centre of Windsor with defrauding the organization over a 12-year period. Officers discovered that a total of $362,739 intended for the charity was instead deposited into the suspect’s personal bank accounts.” The allegations have not been tested in court.
https://au.news.yahoo.com/windsor-man-81-accused-defrauding-183129599.html
