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Investigation & Fraud News – Week ending 16 February 2024
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
Investigation & Fraud News – Week ending 9 February 2024
14 stories this week:
William O’Dwyer sentenced to four years’ jail over Ralan collapse – 2 February 2024
Former high-flying Sydney and Gold Coast property developer William O’Dwyer was handed a four-year jail term on Friday after pleading guilty to six fraud-related charges following the $560 million collapse of his Ralan Group in 2019. The charges that O’Dwyer pleaded guilty to, related to a period between April 17, 2015, and June 6, 2018, when by deception, he dishonestly obtained for companies in the Ralan Group the ability to draw down on finance facilities totalling $251 million.
WA Police crack alleged international money laundering racket – 2 February 2024
WA Police have foiled an alleged international money laundering operation, finding a multimillion-dollar haul of luxury items in Perth’s north-west. Among the items seized was an $80,000 Louis Vuitton trunk. There was also a $42,000 clutch by the designer and $6500 monogrammed teddy bear. It is alleged that the money and cards to commit money laundering offences and the proceeds of these offences were used to buy the luxury items and land.
Westpac cops puny fine for insider trading. What’s the scam? – 2 February 2024
Westpac has been fined a paltry $1.8 million for a trade that netted the bank over $20M in behaviour akin to insider trading. The scam was all in a day’s work back in September 2016 for the Westpac traders, who themselves netted $3.7M in bonuses to the detriment of the buyers. When ASIC took Westpac to the court in 2021, the bank accused Westpac and their merry band of brokers of insider trading, a crime punishable by massive fines for the company and up to ten years in jail for the individuals involved.
https://michaelwest.com.au/westpac-puny-fine-insider-trading/
On-site learning for AI systems set to change up the surveillance industry – 2 February 2024
Article details the evolving landscape of artificial intelligence, and how there is a significant surge in AI adoption within the physical security market. While AI has already made substantial contributions to security through advanced monitoring features like human and vehicle detection, Missing Object alerts and more, the next leap forward lies in the realm of customisable on-site learning for AI systems. This advancement is expected to revolutionise how businesses utilise data for security and operational purposes.
Wanted Sydney property developer Jean Nassif sends millions to Lebanon, Nigeria in potential fraud, administrators say – 3 February 2024
A report into Jean Nassif’s company Toplace reveals he used millions of dollars to buy land in Lebanon and warehouses in Nigeria. The administrators’ report also alleges he transferred $10 million to an account likely owned by his brother. Police say an investigation into Mr Nassif, who is believed to be in Lebanon, is ongoing.
Aussie billionaire Andrew Forrest targeted in a deepfake scam promoting a fraudulent crypto platform – 3 February 2024
Aussie billionaire Dr Andrew Forrest has lashed at Facebook’s parent company Meta after he was featured in a deep fake crypto video scam. The businessman and mining magnate, nicknamed Twiggy, had his identity used to spruik a get-rich-quick scheme with the ad circulating on Instagram. The manipulated video, that surfaced late last month on the Meta-owned platform, shows ‘Dr Forrest’ urging users to sign up for a fraudulent platform that promises to make “ordinary people” thousands of dollars daily.
Whistleblowers should have possibility of their risks being federally covered – 5 February 2024
If staff knew they could be compensated for losing their jobs when they reported fraud with public money, they would have the option to go with their best instincts and speak up rather than turn a blind eye to their livelihoods. A great paper that advocates that whistleblowers should be rewarded for speaking up whilst highlighting the difference in legislation around whistle blowing in the US.
Final person sentenced over Operation Elbrus tax fraud – 5 February 2024
A Sutherland man was jailed for 4 years and 6 months with a non-parole period of 2 years and 3 months by the Supreme Court of NSW for his role in a $105 million tax fraud, becoming the final person to be sentenced under Operation Elbrus. The operation revealed that a group of people used payroll services companies to divert pay-as-you-go withholding tax and goods and services tax owed to the Australian Taxation Office.
https://www.nationaltribune.com.au/final-person-sentenced-over-operation-elbrus-tax-fraud-2/
Finance worker at global firm conned into transferring $38 million after deepfake scammers impersonate his boss – 5 February 2024
A finance employee at a global company has been deceived into transferring $38.8 million to scammers who used advanced deepfake technology to stage a fake meeting with his boss. Scammers were able to use cutting-edge technology to impersonate the Hong Kong’s firm’s chief financial officer during a video call. The finance worker was successfully hoodwinked, and transferred the eight-figure sum straight into their pockets. This complex fraud saw the employee lured into a fake video conference under the impression of meeting with various colleagues.
Clive Palmer loses bid to halt criminal proceedings over alleged fraud and dishonesty – 6 February 2024
Queensland’s court of appeal dismisses applications by Clive Palmer and his Coolum resort relating to charges brought by corporate watchdog. Some charges relate to an allegation that Palmer and Leisure Coolum broke the law over a proposed buyout of timeshare investors in the Sunshine Coast resort without making an offer within the required two-month time limit. Palmer is also accused of improperly transferring more than $12m through his company Mineralogy to Media Circus and Cosmo Developments, and ultimately using the funds for the 2013 federal election campaign for the Palmer United party, now known as the United Australia party.
Former Launceston General Hospital head allegedly falsified medical certificates of death, inquiry hears – 6 February 2024
Launceston General Hospital nurse and midwife Amanda Duncan has told an inquiry the hospital’s former head of medical services allegedly falsified medical certificates of death. Ms Duncan told the committee she had received 11 reports from doctors and nurses who had disclosed alleged misconduct relating to the death of a patient, including falsified medical certificates of death. Ms Duncan is calling on the department to investigate the allegations she has raised, and for a commission of inquiry to investigated health system failures in Tasmania.
Former Renewal SA staffer fined for tipping her bosses off to an ICAC investigation against them – 7 February 2024
Stephanie Hardy was given a fine for disclosing information about an anti-corruption investigation against her bosses.
The court heard that the woman felt obligated to let her bosses know even though it was illegal to release information about an ICAC matter. Hardy avoided a conviction but was handed a $1,000 fine.
Report unveils emerging AI challenges in financial crime
ComplyAdvantage, a leader in artificial intelligence-driven fraud and anti-money laundering risk detection, has researched and reported on fraud, money laundering, and financial crime in the world of AI. Their recent report details key insights on AI’s role in combatting fraud.
NSW government to rewrite ministerial code in wake of Berejiklian ICAC findings – 7 February 2024
The state’s corruption watchdog recommended new guidelines for selflessness, integrity, honesty, and leadership which now will be included in the ministerial code of conduct. Parliamentarians will be forced to disclose more information in the wake of investigations into Gladys Berejiklian and John Sidoti. The changes will be made from July 1, after the government consults with parliamentary committees.
https://www.abc.net.au/news/2024-02-07/nsw-government-icac-findings-berejiklian-sidoti/103436156
Investigation & Fraud News – Week ending 2 February 2024
9 stories this week:
‘World’s most controversial company’ Clearview AI still being used to solve Australian police cases – 24 January 2024
Clearview AI is being used to solve Australian police cases despite the privacy watchdog slamming police for their use of the controversial and unlawful facial recognition technology.
https://www.crikey.com.au/2024/01/25/clearview-ai-australian-police-operation-renewed-hope/
How a Banned Aussie Built a Financial Network of 5 New Companies – 24 January 2024
David Fuoco was banned from operating or being involved in financial services for 10 years. He and his businesses at the time were ordered to pay over $8 million in fines and costs. However, ASIC now alleges that between March 2019 and April 2023, Fuoco carried on a financial services business through five companies. ASIC has recently intensified its crackdown on illegal financial services platforms and fraudsters. In November, they published its first “investor alert list” which identified 52 unlicensed entities and 25 websites impersonating legitimate companies.
Report unveils emerging AI challenges in financial crime – 26 January 2024
ComplyAdvantage, a leader in artificial intelligence-driven fraud and anti-money laundering risk detection, has researched and reported on fraud, money laundering, and financial crime in the world of AI. Their recent report details key insights on AI’s role in combatting fraud.
Australia maintains corruption ranking as government urged to do more on whistleblowers – 30 January 2024
The annual corruption perceptions index, released by Transparency International, placed Australia at 14th, maintaining its score of 75 out of 100. It uses expert views to rate countries on possible corruption in public services. The anti-corruption group’s chief executive, Clancy Moore, said the Albanese government’s opening of the national anti-corruption commission and promises of electoral reform laid “promising foundations”, but “there’s a new chapter waiting to be written in 2024”.
FBI: Scammers Now Tricking Victims Into Sending Them Gold Bars – 30 January 2024
Scammers are manipulating victims into liquidating their cash into precious metals, which is then retrieved by a courier for ‘safekeeping’. The scam works by impersonating government officials or customer support at a financial or technology company. While pretending to be someone of authority, the fraudsters will reach out to potential targets, claiming that their financial accounts were hacked. The culprits will then urge the victim to liquidate their financial assets to purchase gold, silver, or other precious metals. Over $55 million has been stolen.
https://au.pcmag.com/security/103618/fbi-scammers-now-tricking-victims-into-sending-them-gold-bars
PRESS RELEASE: Rising Tide of Online Scams: A Sydney Family Business’s Call for Action – 31 January 2024
Online scams have not only targeted unsuspecting individuals but have also cast a shadow over legitimate businesses. Containers First, a shipping container business confronted the surge in shipping container scams head-on. They advocate for more robust government intervention, compensation Scheme for Victims, and strengthened Cybersecurity measures.
Aussie man charged over $2.8b crypto scheme – 31 January 2024
Australian blockchain entrepreneur Sam Lee could face up to five years in jail after being charged for his alleged role in a $2.86 billion cryptocurrency pyramid scheme. Court documents allege Lee and his co-conspirators sold investment contracts to the public through the oft-rebranded Hyperfund’s investment platform, and that the company’s promotional materials made a range of false claims to investors.
https://ia.acs.org.au/article/2024/aussie-man-charged-for–2-8b-crypto-scheme-.html
Ending the silence on migrant worker exploitation – 31 January 2024
In May last year, the Grattan Institute reported that between five and 16% of recently arrived migrants were being paid less than the minimum wage, somewhere between 27,000 and 82,000 workers. Due to the wording of the Migration Act, migrants who speak out are at risk of losing their visas, but new reforms will provide whistleblower protection.
Booking.com scams surge 580% with hundreds of thousands of dollars in losses, ACCC says – 31 January 2024
Australia’s consumer rights watchdog has seen a sharp rise in scam reports which mention the popular accommodation website Booking.com. Criminals have gained access to the Booking.com accounts of some accommodation providers, using them to send messages to guests while posing as properties they have bookings with.
Investigation & Fraud News – Week ending 26 January 2024
13 stories this week:
Fujitsu director apologises for British Post Office scandal that saw 900 workers wrongly convicted – 17 January 2024
Nine hundred wrongly convicted British post office workers are on their way to getting justice following a public apology from the company that provided the faulty technology, that led to their false convictions. Multiple managers were imprisoned for theft or fraud for the failures of the accounting software that was first introduced in 1999.
Medion Australia hit with $260,000 fine after SIM-swapping scam leads some telco customers to lose thousands – 17 January 2024
Medion Australia was found to have allowed scammers to take control of customers’ phone numbers by using their personal details to request new SIM cards. Nine customers had their services illegally ported, and five of them together lost more than $160,000, Medion has been forced to pay a $259,440 fine after the watchdog found the telco had not complied with customer identification rules.
What is credential stuffing? How does it work? How can I protect myself from being scammed through my online accounts? – 19 January 2024
Thousands of Australians have been caught up in a fresh wave of scams after their online accounts were hacked and fraudulent purchases were made without their knowledge. The practice is known as “credential stuffing”, and it has long been used as a cyber attack by hackers. Article defines çreditional stuffing, explains how it works, how to protect yourself and explains steps to take if your scammed.
https://www.thenewdaily.com.au/finance/finance-news/2024/01/18/data-credential-stuffing-hack
Man charged as investigations into fraudulent finance applications worth over $2m continue – Strike Force Onsite – 19 January 2024
Financial Crimes Squad detectives have charged a man and executed two search warrants as part of an investigation into an allegedly fraudulent finance and loan applications to car dealerships and other finance companies. It’s alleged between September 2022 to July 2023, the syndicate applied for fraudulent finance applications to at least three companies to the value of $2,147,535.00.
Elon Musk Tries To Have NSW Man Arrested For Exposing Tesla Safety Issues – 20 January 2024
An Australian Federal Court judge has rejected a request by the head of American automative company Tesla, Elon Musk, to have an arrest warrant issued against a man accused of uploading leaked documents by a whistleblower. Tesla claims that Leech has continued to share links to the leaked documents on social media, amounting to an offence of contempt of court. The request by Tesla was considered ‘unrealistic’ and a ‘draconian step’.
https://www.sydneycriminallawyers.com.au/blog/tesla-tries-to-arrest-nsw-man-over-whistleblower-docs/
American NRA under fire on charges of financial mismanagement – 22 January 2024
A trial is underway in New York that could have significant political implications in the US. The powerful National Rifle Association and its former long time chief Wayne LaPierre are facing a civil lawsuit that alleges financial mismanagement and millions of dollars in fraud that funded lavish lifestyles for top executives.
Pig butchering scam targeting Australians as AFP warns lonely hearts to be wary this Valentine’s Day – 21 January 2024
Pig butchering, also known as romance baiting and Sha Zhu Pan, is a scam in which offenders often devote long periods of time to gain the trust of victims before encouraging them to invest in the share market, cryptocurrency or foreign currency exchanges. The AFP is also cautioning lonely hearts to be wary of organised criminals this Valentine’s Day, as statistics show Australians lost up to $4500 every hour to romance scammers in 2022 and up to $3800 every hour in 2023.
Romance scam money mule has $239k go through her bank account – 22 January 2024
A romance scam money mule who had $239,000 go through her bank account has been convicted and placed on a good behaviour bond.
Digital access to standard required to read article.
Identifying criminals from single cell – 23 January 2024
The latest techniques in genetics can identify an individual from just one cell. A new project is set to explore whether the justice system could use these to create DNA profiles from complex crime scene evidence.
https://www.miragenews.com/identifying-criminals-from-single-cell-1159136/
Corruption and Crime Commission recommends man be prosecuted over alleged $281k hospital fraud – 23 January 2024
WA’s corruption watchdog has called for possible prosecution of a man who allegedly gained hundreds of thousands of dollars through a “devious” fraud while working at a Perth hospital. Suresh Kumar was a senior biomedical engineer at Sir Charles Gairdner Hospital.
He set up a business registered to his wife and added it to the hospital’s list of suppliers, to gain a financial benefit of $281,000.
‘Forensic investigation’ launched after woman charged with drug importation linked to companies that reportedly received Australian and PNG government funds – 24 January 2024
An Australian-funded refugee program in Papua New Guinea will be forensically investigated following allegations a woman arrested over an alleged $15 million drug importation attempt had links to companies in the program.
Crypto pastor admits to fraud on video, claims ‘the Lord told me to’ remodel house with funds – 24 January 2024
Eli Regalado and his wife Kaitlyn are facing civil fraud charges in Colorado after selling a “worthless” cryptocurrency and pocketing $1.3 M of donations in a cryptocurrency scheme. He used Affinity fraud, which is tapping into a community of personal relationships to reach multiple victims and took advantage of the trust and faith of his own Christian community.
https://www.abc.net.au/news/2024-01-25/crypto-pastor-scams-followers-remodel-house/103380582
Australians lose $135,000 to fake ticketing scams ahead of Taylor Swift concerts in Melbourne and Sydney – 24 January 2024
The ACCC Scamwatch says 273 people reported being scammed into buying fake Taylor Swift tickets on social media, with over $135,000 lost so far. The scammers use hacked social media accounts to put up posts saying they can no longer attend the concert and want to sell their tickets.
