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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
Investigation & Fraud News – Week ending 13 October 2023
11 stories this week:
Qld government orders second inquiry into forensic DNA testing – 5 October 2023
The Queensland government has ordered a second inquiry into forensic DNA testing following revelations 37,000 cases need reviewing. It comes months after Judge Walter Sofronoff found during the first inquiry last year that a series of factors including “mismanagement” and “dishonesty by senior managers”, had led to the failures within the state-run DNA lab. The new inquiry was launched following the discovery that about 7000 additional serious crime and sexual assault cases needed to be reviewed, as a result of insufficient automated DNA extraction methods.
A credible person – 7 October 2023
Gillian blew the whistle on her pedophile boss, Swansea MP and minister for Aboriginal Affairs Milton Orkopoulos. She’d photocopied office documents that helped police convict Milton for terrible crimes against young boys. It cost Gillian her job as an electorate officer but she believes he could have been stopped earlier so that victims would never have been victims.
Employers should review messaging and training around whistleblowing policies: Freshfields survey – 7 October 2023
According to a recent survey, more managers around the world want the identity of a whistleblower revealed, with 63 per cent in favour globally. The report showed that as whistleblowing is in the spotlight, global businesses need the right policies and processes in place to deliver an effective speak-up culture and support employees.
Rampant identity theft is turning scam victims like Ben into scapegoats for criminals – 8 October 2023
Ben is just one of many Australians that have fallen victim to identity fraud, and had their own trust turned against them. Ben initially was a victim of a scam himself, paying $300 to a scammer. He made the mistake of sending a picture of his licence to what he thought was a genuine ticket seller. But when people started messaging him, claiming that Ben had also scammed them out of money, alarm bells went off. Ben soon realised his identity had been stolen, with multiple accounts using his name and photos appearing on Facebook.
The ASIC Senate Inquiry delivers a reminder that whistleblowers should be protected, not punished – 9 October 2023
Stephen Helberg, a trained auditor with 40 years’ experience attempted to inform ASIC about a known corporate syndicate allegedly “masterminded by Mr David Sutton, an Australian citizen, that misled and deceived thousands of investors, most of them in Australia, and continued the illegal activities for many years… and still actively misleading investors”. He said the media listened and ASIC only took action when the story became public. Helberg told the Senate he was speaking up in the hope that investors would be protected. ASIC said in a statement its investigation was continuing.
Hightrade: Former boss of Chinese construction company Li Zhang guilty of multimillion-dollar tax fraud – 10 October 2023
The former boss of Chinese construction company Hightrade has had his bail revoked after being found guilty over his role in a multimillion dollar tax fraud. Li Zhang was found guilty of two charges after a lengthy jury trial. The 60-year-old was accused of conspiring to cause loss to the Commonwealth through the plot.
https://financefeeds.com/asic-charges-ex-bby-ceo-with-fraud/
Sam Bankman-Fried’s ex-girlfriend Caroline Ellison testifies against former billionaire in fraud case – 11 October 2023
Caroline Ellison, the tech executive who ran Bankman-Fried’s hedge fund while sometimes dating him, told the court he directed her to commit fraud. Her testimony could play a major role in convicting the 31-year-old, which could see him imprisoned for decades. Bankman-Fried was accused of stealing billions of dollars in FTX customer funds to plug losses at Alameda Research. He is facing eight criminal charges including wire fraud, money laundering, and conspiracy to commit fraud on the United States. He has pleaded not guilty, arguing that while he made mistakes running FTX, he never intended to steal funds.
https://www.abc.net.au/news/2023-10-11/sam-bankman-fried-court-case-ftx-alameda-research/102961926
Online Phishing Scams And What To Look Out For – 11 October 2023
Phishing and identity theft are no joke, and unfortunately only becoming more and more common. Article details the tips and trips, to greatly reduce your chances of being scammed. It also lists some fantastic, comprehensive tools available to help you either avoid these scams, or help solve the problem should the worst occur.
https://au.pcmag.com/security/102060/online-phishing-scams-bitdefender-premium-security
Urgent Urgent Reform is needed for Australia’s inadequate whistleblower protections – 11 October 2023
Griffith University’s Centre for Governance and Public Policy, the Human Rights Law Centre and Transparency International, have jointly published a new report, Protecting Australia’s Whistleblowers: The Federal Roadmap. The report outlines 12 steps that the government must take in the months ahead to ensure Australia’s whistleblowers are able to tell the truth about wrongdoing without fear of retaliation. The Federal Government has indicated that significant reforms will be considered to the PID (Public Interest Disclosure) Act, and there is a golden opportunity during the review of the Corporations Act happening next year.
https://www.lexology.com/library/detail.aspx?g=b1ac6510-997c-432d-af88-79a32501422b
Trump ‘fraudulently obtained loans’: ex-bank official – 12 October 2023
A retired bank official has testified that Donald Trump obtained hundreds of millions of dollars in loans using financial statements that a court has since deemed fraudulent. A judge last month ruled the former president and his company, committed years of fraud by exaggerating the value of Trump’s assets and net worth on the financial statements he gave to banks, insurers and others to make deals and secure loans.
https://www.perthnow.com.au/news/crime/trump-fraudulently-obtained-loans-ex-bank-official-c-12179794
Ex-chief of collapsed stockbroker BBY charged – 12 October 2023
The former chief executive of failed stockbroker BBY Arunesh Narain Maharaj of Sydney, New South Wales, has been charged with aiding, abetting, counselling or procuring fraud. According to the ASIC, the alleged fraud centers on BBY’s unauthorized drawing of additional funds from an overdraft facilitation account held with St George Bank. Each offence carries a maximum penalty of 10 years imprisonment.
https://www.moneymanagement.com.au/news/funds-management/former-ceo-failed-stockbroker-bby-charged
https://financefeeds.com/asic-charges-ex-bby-ceo-with-fraud/
Investigation & Fraud News – Week ending 6 October 2023
12 stories this week:
Vietnamese court jails environmental activist for tax fraud, Human Rights Watch raises concerns – 28 September 2023
A Vietnamese court has sentenced an environmental activist to three years in prison on charges of tax fraud, just days after the government discussed protecting human rights with US President Joe Biden during a state visit. Hoang Thi Minh Hong was accused of dodging tax payments worth 6.7 billion dong ($430,745) during the 2012-2022 and has pleaded guilty.
Shakira is accused of using an offshore company based in a tax haven to avoid paying tax. Here’s what we know – 30 September 2023
Singer Shakira will have her day in court after being ordered to stand trial on charges she failed to pay millions of dollars in income taxes. She accused of failing to pay 14.5 million euros ($21.6 million) in income tax between 2012 and 2014. Under Spanish law, people who spend more than six months in the country are considered residents for tax purposes. Shakira claimed that authorities only came after her, when they found out she was dating FC Barcelona soccer player Gerard Piqué, who is Spanish.
Who will benefit from AI? – 30 September 2023
MIT economist Daron Acemoglu states in this article that AI is often talked about as something that could replicate human intelligence and replace human work. But there is an alternate future: one in which AI provides “machine usefulness” for human workers, augmenting but not usurping jobs, while helping to create productivity gains and spread prosperity so they are more useful to humans.
https://www.miragenews.com/who-will-benefit-from-ai-1094892/
The challenge of forensic accounting in the digital economy – 1 October 2023
Owen Hawkes is the forensic practice partner at KPMG in Singapore and a former barrister with the British Government’s Serious Fraud Office. He discusses how digital technologies are helping to answer challenging questions during investigations, improves the quality of evidence, but can also produce new challenges.
https://intheblack.cpaaustralia.com.au/accounting/challenge-forensic-accounting-in-digital-economy
Should hybrid workers expect to be monitored? – 3 October 2023
Ever since the COVID-19 pandemic there have been questions over the acceptability of using surveillance technology on remote workers. Research from 2021 suggested a vast majority employees weren’t comfortable with having their activity remotely monitored. Still, there are legitimate – and non-punitive – reasons for monitoring remote workers, including for cyber security purposes. The important thing, is for employers to ensure their monitoring – if needed – is done “carefully and for the right reasons”. If employees are concerned about workplace surveillance practices, they should ask their employer for a full description of those practices and associated policies.
https://ia.acs.org.au/article/2023/should-hybrid-workers-expect-to-be-monitored-.html
Corruption Down Under (Part I): Australia, Not What It Seems – 3 October 2023
In Transparency International’s most recent report, Australia ranked 13th out of 180 countries (with a score of 75), up two places from the previous year. Corruption undermines a government’s ability to protect people and erodes public trust, provoking more and harder-to-control security threats In part one of this series, Calvin London explores corruption in Australia and its current anti-corruption efforts at a time when the country is becoming even more dependent on international trade.
https://www.corporatecomplianceinsights.com/corruption-down-under-australia/
PwC Australia tax scandal and its impact on governance – 3 October 2023
The Australian arm of PricewaterhouseCoopers (PwC Australia) has pledged to boost its corporate governance controls in response to firm-commissioned reviews faulting its culture for a leak of government tax plans. The firm has asked business executive Ziggy Switkowski and top law firms to examine how the leak had occurred and the firm’s wider approach to conflict management. The reports identify serious governance, structural and cultural problems and made recommendations for remediation.
Out of the shadows – 4 October 2023
Miles Mehta worked for years as a confidential source for Australian and American law enforcement agencies. He’s been on the run for the last three years. The 33-year-old’s aware of the risks of speaking out as an informant, but says he has nothing to lose. He believes the American agency he was introduced to by Australian law enforcement has turned against him. This is his story.
Maintenance man stole almost $200k from NDIS clients – 4 October 2023
Andreas Strepelias, a maintenance man admits he dishonestly obtained more than $191,000 from the Commonwealth through NDIS frauds, committed over a months-long period in 2018. He created false requests for payments for services he purportedly provided for 50 NDIS participants.
https://au.news.yahoo.com/maintenance-man-stole-almost-200k-031826861.html
Melbourne fraudster Terence ‘Rio’ Nugara jailed for a decade over property investments scam – 5 October 2023
Terence “Rio” Nugara was living a rich man’s dream, but it was funded by 38 victims of a $10 million fraud. The County Court heard he gained access to his victims’ bank accounts and self-managed superannuation funds, and then transferred their money to himself. He pleaded guilty to 35 charges of obtaining financial advantage by deception and two charges of theft and has been jailed for almost 10 years
FTX founder Sam Bankman-Fried is standing trial in Manhattan for fraud. Here’s how it’s unfolding – 5 October 2023
Former FTX CEO Sam Bankman-Fried’s trial has begun in Manhattan. He is facing eight criminal charges including wire fraud, money laundering, and conspiracy to commit fraud. He has pleaded not guilty. He could face decades in prison after being accused of stealing billions of dollars in FTX customer funds to plug losses at his hedge fund, Alameda Research.
https://www.abc.net.au/news/2023-10-05/ftx-founder-sam-bankman-fried-trial-manhattan/102937762
Hong Kong-based cryptocurrency exchange JPEX faces US$300 million fraud allegations – 5 October 2023
JPEX, the Hong Kong cryptocurrency exchange which collapsed owing more than $300 million and is the focus of a major fraud operation by the city’s financial authorities, marketed itself as an Australian-licensed operation and was registered to an apartment building in Sydney’s north. Hong Kong police have so far arrested 18 individuals in connection with JPEX and are working with Interpol to locate company executives.
