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Investigation & Fraud News – Week ending 28 July 2023
10 stories this week:
‘Everyone thinks I’m a criminal’: The Millennial money manager and the missing millions – 22 July 2023
Article details ASIC’s investigation into the failure of the Magnolia Group and missing millings. Magnolia operated a private lending business, sourcing capital from private investors when approximately $40 million in investor losses became unaccounted for.
Trevor Crawford, a decorated public servant, made allegations of government corruption. He says it cost him his career – and almost his life – 22 July 2023
Former public servant Trevor Crawford, who gave evidence to the Coaldrake review (Report into the culture and accountability in the Queensland public sector), said his career was subject to vexatious allegations and bullying after reporting an allegation of high-level corruption. Mr Crawford was quoted in the Coaldrake report and he has now raised serious concerns about how Queensland government whistleblowers are treated.
Bitcoin bonnie and clyde to plead guilty – 23 July 2023
Ilya Lichtenstein and Heather Morgan are reportedly preparing to plead guilty for their involvement in an alleged cryptocurrency laundering scheme worth $4.5 billion. The alleged cryptocurrency laundering scheme was a complex operation, and the couple is accused of attempting to move a vast sum of money through digital assets while concealing its origin.
https://tickernews.co/bitcoin-bonnie-clyde-to-plead-guilty/
AI misinformation attacks are inevitable, warns US expert – 23 July 2023
According to Kris Lovejoy, the global security and resiliency leader for Kyndryl, businesses and public agencies need to rehearse their responses to large-scale AI-powered misinformation and cyberattacks, so they can quickly bounce back. This means running tabletop exercises on scenarios regularly and planning responses.
Joint ATO operation smashes $137m fraud and exploitation ring – 24 July 2023
An ATO taskforce has smashed a $137 million fraud, money laundering and worker exploitation ring with the sentencing of a fourth Chinese national. Collectively, the criminals had withdrawn more than $137 million since arriving in Australia to facilitate cash payments for foreign workers being exploited in NSW and the ACT while avoiding tax.
Alleged money mule laundered $176k from fraudulent emails – 25 July 2023
A 23-year-old Melbourne man has been charged with allegedly laundering more than $176,000 stolen from businesses targeted by cyber criminals. The AFP claims the man acted as a money mule and facilitated the movement of money obtained through business email compromise (BEC) fraud and other cyber crimes.
Eight telcos breach consumer protection rules – 26 July 2023
The Australian Communications and Media Authority (ACMA) has taken action against eight telcos after they failed to provide adequate safeguards that help customers to avoid service restrictions, suspensions or disconnections. Non-compliance could lead to significant consequences, with potential penalties of up to $250,000 for failing to comply with an ACMA direction.
https://www.acma.gov.au/articles/2023-07/eight-telcos-breach-consumer-protection-rules
Tottenham’s billionaire owner Joe Lewis charged with insider trading in US – 26 July 2023
British billionaire Joe Lewis, owner of the Tottenham Hotspur soccer club and majority owner of Australia’s biggest premium beef producer AACo, has been charged with insider trading in the US. Federal prosecutors alleged in an indictment in New York that the 86-year-old passed on inside information from companies in which he was a large investor to friends, including his personal pilots, assistants, and romantic partners. Lewis, the founder of the investment firm Tavistock Group, faces more than a dozen charges, including securities fraud.
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ATO reveals more than $557 million claimed by fraudsters exploiting security loophole – 26 July 2023
The Australian Tax Office (ATO) has admitted to the ABC, that more than half a billion dollars has been claimed over the past two years, by fraudsters exploiting a glaring security gap in the agency’s identity checking system. Fraudsters create bogus my Gov accounts and stolen information (bank statements, a previous ATO assessment, PAYG summaries etc.) to switch your ATO account to theirs. Once they’ve established the link they can replace your bank details and then submit refund claims while pretending to be you.
https://www.abc.net.au/news/2023-07-26/ato-reveals-cost-of-mygov-tax-identity-crime-fraud/102632572
Ibac report could result in criminal charges after finding property developer paid MPs and councillors – 27 July 2023
Prosecutors will consider criminal charges after Victoria’s anti-corruption watchdog found millionaire property developer, John Woodman paid councillors Geoff Ablett and Sameh Aziz and made political donations to influence planning decisions in his favour. Acting commissioner says any evidence collected will be sent to Office of Public Prosecutions.
Investigation & Fraud News – Week ending 21 July 2023
9 stories this week:
What does the National Anti-Corruption Commission mean for the Northern Territory ICAC? – 14 July 2023
It has only been in operation for two weeks, but the National Anti-Corruption Commission (NACC) has already been inundated with 300 reports of misconduct and corrupt conduct. The federal NACC defines its task as “deterring, detecting and preventing corrupt conduct involving Commonwealth public officials.
https://www.abc.net.au/news/2023-07-14/nt-nacc-icac-corruption-overlap-reports-future/102588028
Australia’s Proposed New Bribery Law – 17 July 2023
Australia is looking to introduce a new foreign bribery law that includes a corporate failure to prevent offence and a stricter definition of corrupt payments. The proposed new legislation, the Combatting Foreign Bribery Bill, would remove the current requirement for prosecutors to prove that a defendant had a specific advantage in mind when paying a bribe. It would also introduce the offence of “improperly influencing” a foreign official.
Deloitte CEO defends $3.5m pay amid calls for reform, royal commission – 17 July 2023
The Senate inquiry into consulting firms has resulted in emerging themes that the partnership structure of the big four firms helps them escape the type of regulatory oversight and disclosure that other large private companies are subjected to, that self-regulation of the sector is not working effectively, and that the firms, especially the strategy firms, feel free to refuse to reveal details of their operations to the Senate committee.
Linx Employment under investigation for alleged mistreatment of Pacific Islander workers – 18 July 2023
Linx Employment is facing multiple investigations over allegations it failed to provide workers with their legally contracted 30 hours per week. The Australian Workers Union (AWU) claims about 190 workers from around the country have come forward with complaints about Linx Employment.
AFP pauses use of controversial surveillance tech Auror found in Woolworths, Bunnings – 18 July 2023
The Australian Federal Police (AFP) has suspended the use of surveillance platform Auror after a freedom of information (FOI) request revealed that more than 100 of its staff had used the platform – for more than a year in some cases – without considering privacy or security implications.
https://www.smartcompany.com.au/industries/retail/afp-pauses-controversial-surveillance-tech-auror/
Tennant Creek community leader Deb Cain charged with obtaining benefit by deception – 19 July 2023
Deb Cain, a Tennant Creek community leader and former manager at the local Aboriginal council has been charged with obtaining benefit by deception. At Tennant Creek Local Court, she was accused of using fraudulent working with children clearances and a national police check, which incorrectly stated she had no criminal history.
Woman who cheated NAB out of millions of dollars jailed for 15 years – 20 July 2023
Helen Mary Rosamond was handed a maximum sentence of 15 years in prison for embezzling millions of dollars from the National Australia Bank (NAB) Her co-offender and “bestie” Rosemary Rogers is currently serving an eight-year sentence.
The $62 million estimate of the total fraud is based on evidence provided in the trial by McGrathNicol’s forensic accountant partner Matt Fehon, who was employed by the NSW Police and NAB to examine business records of the Human Group in relation to the NAB fraud.
https://www.abc.net.au/news/2023-07-20/helen-rosamond-nab-fraud-sentencing/102624088
No local FTX reboot as ASIC cancels its Australian licence – 20 July 2023
About 30,000 Australian investors are embroiled in FTX’s bankruptcy proceedings after revelations last year that about $8.7 billion in customer money had been drained from individual accounts and used for personal trading and venture capital investments. ASIC has now once again cancelled FTX’s Australian financial services licence.
What creates an unethical workplace and how to stamp out bad behaviour – 21 July 2023
It’s more important than ever to understand how unethical behaviour thrives in a workplace – and how to stamp it out. The article talks about Harvard Business School professor Max Bazerman, who has written extensively about the connection between unethical work environments and complicity, which he defines as being involved with others in illegal or unethical activity. He’s particularly interested in how such scandals could be prevented from happening again.
Investigation & Fraud News – Week ending 14 July 2023
10 stories this week:
Martin Lewis warns over ‘disgraceful’ new deepfake scam advert – 7 July 2023
Consumer finance expert Martin Lewis has warned over a “disgraceful” deepfake scam advert for an investment app, which he said will lead vulnerable people to lose money and ruin lives. The advert, which reportedly circulated on Facebook, appears to show Mr Lewis endorsing an Elon Musk-backed investment scheme through a video at his home.
https://au.news.yahoo.com/martin-lewis-warns-over-disgraceful-134924577.html
Job seekers fleeced by work from home scam – 8 July 2023
People seeking jobs with flexible work conditions such as working from home, have fallen foul of an employment scam that has so far claimed 20 victims in Western Australia, who reported losing a total of $510,000. To secure the job, victims are deceived into investing a substantial amount of money in crypto currency with the false promise of high returns.
https://www.haveagonews.com.au/news/job-seekers-fleeced-by-work-from-home-scam/
Sisters Debra and Chanelle Viney plead not guilty to defrauding Queensland drought scheme – 10 July 2023
A trial of two cattle station owners has heard allegations $131,000 was fraudulently obtained from a Queensland government drought relief scheme. The court heard that the sisters tried to defraud the system by submitting false claims for costs. The trial continues.
AFL chair, a former state treasurer and other business high-flyers – 10 July 2023
A fraudulent scheme pretending to sell air conditioners to BHP and promising a “10 times” return to investors has led to jail time for Steven Phillip Heaton who swindled some of the biggest names in Australian business. He suggested the mining giant would eventually buy 1,800 of his energy-efficient air conditioners but only two incomplete test units were delivered.
Sydney accountant charged over alleged $26m fraud – 12 July 2023
Benjamin Leigh Carter an accountant, with alleged links to the organised crime world has been charged with defrauding clients of $26 million. Police will allege that Mr Carter defrauded at least eight clients to the value of $26 million in a bid to fund his lavish lifestyle and gambling habit.
https://www.abc.net.au/news/2023-07-12/sydney-accountant-charged-fraud-clients/102591570
Robodebt victims considering civil action for compensation after royal commission findings – 12 July 2023
Australians targeted by the illegal robodebt income averaging scheme are considering their legal options a suggested there was evidence to support a further civil case. Robodebt is the informal name given to a debt recovery program which started in 2015 that falsely accused welfare recipients of owing money to the government. It automatically issued notices to people identified as having debts through a process of income averaging, unlawfully claiming almost $2 billion from 433,000 people.
How two ‘besties’ almost got away with scamming millions from NAB – 12 July 2023
As a team of police was searching Helen Rosamond’s terrace house in April 2018, they made an eye-popping discovery. Inside one of the Sydney businesswoman’s two safes was a million-dollar cheque. It was in a National Australia Bank envelope labelled “bank cheque Rosemary Rogers.” Five years after that police search, Rogers is in jail and Rosamond will be sentenced on Monday. This pod cast tells the story of how two ‘besties’ got away with scamming millions.
Corporate adviser Anthony Torre accused of stealing millions from clients pleads not guilty in Perth court – 13 July 2023
A high-profile corporate adviser accused of stealing more than $1.7 million from clients denied the raft of offences weeks after federal prosecutors claimed he was sacking his lawyers to delay the matter. Anthony Paul Torre was charged with five counts of stealing and eight counts of fraud last year.
Man arrested after allegedly selling fake gold bullion outside a Sunshine Coast service station – 14 July 2023
Police have charged a man over an alleged fake gold bullion scam on Queensland’s Sunshine Coast. Police say the bars were found to be gold-plated copper. He has been charged with three counts of fraud, one count of attempted fraud and two counts of possessing tainted property.
Cloncurry real estate agent Janessa Bidgood faces court on fraud charge – 14 July 2023
Police allege that Janessa Bidgood, a director at Outback Auctions and Real Estate, deliberately and dishonestly failed to present all offers to a seller in Mount Isa. She is accused of presenting her own offer as a buyer, as the sole offer available. This allegedly resulted in the landowner believing no other offer existed and led to the property being sold for approximately $27,500 less than another offer. She has been automatically suspended from her role as a councillor and matter has been adjourned.
Investigation & Fraud News – Week ending 8 July 2023
11 stories this week:
CBA jostles with AI-generated Matt Comyn scam – 15 June 2023
Scammers are using fraudulent, AI-generated videos of Mr Comyn (CBA CEO), and others, to try and convince people to invest. The videos – posted by a variety of personal accounts direct people to a website that promotes a “Quantum AI” tool and includes a fake interview with Mr Comyn who is promoting a scam investment scheme.
FTX founder Sam Bankman-Fried likely to face two criminal trials – 15 June 2023
FTX founder Sam Bankman-Fried may face new charges which include a claim he directed the payment of $US40 million ($58 million) in bribes to a Chinese official or Chinese officials to free $US1 billion in cryptocurrency that was frozen in early 2021.
Cameron Gidley-Baird jailed for $1.8m fraud targeting farmers with business scam – 21 June 2023
A man who defrauded eight New South Wales farmers of $1.8 million has been sentenced to a maximum of six-and-a-half years in jail. Gidley-Baird, had registered numerous businesses and opened several bank accounts as part of an orchestrated scam. The court heard he promised false business ventures that never materialised, instead pocketing the money.
Luxury cars seized and two men charged over alleged $5.5m Sydney cryptocurrency scam – 22 June 2023
Two men have been charged and several luxury sports cars have been seized in Sydney, after two companies were allegedly defrauded more than $5.5 million in a cryptocurrency scam. Police say Mr Sa Alves used a cryptocurrency scam from 2021 to defraud the companies, while the older man allegedly authorised the funds and got rid of the Ferrari to avoid police detection. Mr Sa Alves has been charged with three counts each of dishonestly obtaining financial advantage by deception, and knowingly dealing with proceeds of crime with intent to conceal.
Perth Mint faces more scrutiny as federal parliamentary inquiry launched after gold doping saga – 22 June 2023
AUSTRAC has been investigating the Perth mint since late last year over its level of compliance with anti-money laundering and counter-terrorism financing laws. It follows concerns over regulatory compliance and gold sales to China with lower purity.
How victims were scammed out of hundreds of thousands of dollars by Bank of America employee – 23 June 2023
Rajesh Ghedia was sentenced to six years and nine months in prison last year, for pretending to be a Bank of America financial adviser as part of the AU$3.3 million scam. He convinced people to invest in non-existent financial products but pocketed the money himself. Australian, Wayne Johncock lost more than $A337,000 in Ghedia’s scams, which had a major impact on his mental health.
Ex-Audi boss convicted of fraud after pleading guilty in Volkswagen diesel emissions scandal – 27 June 2023
A German court has found ex-Audi boss Rupert Stadler guilty of fraud in connection with the Volkswagen diesel emissions scandal. Making him the highest-ranking executive, convicted over cars that cheated on emissions tests, with the help of illegal software. The scandal cost the company more than $44.7 billion in worldwide fines and settlements.
The tech flaw that lets hackers control surveillance cameras – 27 June 2023
Chinese-made surveillance cameras are in British offices, high streets and even government buildings. This article shows how Panorama has investigated security flaws involving the two top brands. They demonstrate how easy is it to hack them and what it means for our security.
https://au.news.yahoo.com/tech-flaw-lets-hackers-control-110030136.html
ICAC ‘mismanaged’ inquiries but probe into former Renewal SA boss ‘justified’, review finds – 27 June 2023
A review of how ICAC handled an investigation into the John Hanlon’s, the former Renewal SA boss’s travels has been tabled in parliament. It was critical of the work undertaken by the anti-corruption watchdog in Germany and found the failure to follow processes amounted to “an infringement of Germany’s sovereignty”.
Beware of scammers posing as banks: WA real estate agent loses $300,000 – 28 June 2023
Criminals posing to be a bank have swindled nearly $330,000 from a Western Australian real estate agent’s trust account via a remote access scam. Article outlines 5 ways to identify a bank impersonation scam.
https://www.savings.com.au/news/scammers-posing-as-bank-swindle-300k
WA man arrested as part of international illegal marketplace takedown – 30 June 2023
A WA man is expected to face Perth Magistrates Court for cybercrime offences after the takedown of an illegal online marketplace that allowed users to purchase stolen personal information for alleged criminal offending. The marketplace, Genesis Market, offered access to more than 1.5 million compromised computers – each containing information for dozens of accounts. The site was shut down in April 2023 and 10 people across Australia were arrested as part of the coordinated international effort.
Federal government launches new investment scam taskforce with help from ASIC, ACCC – 3 July 2023
Australians have been losing more and more money to scams each year, with total losses exceeding an estimated $3 billion last year. The National Anti-Scams Centre brings together experts from public agencies and private industries to disrupt scammers. Its first operation will tackle investment scams, which cost Australians over $1 billion a year. The operation will last six months, with the centre publicly reporting outcomes.
Former prison officer guilty of $94,000 disability payment scam sentenced to home detention – 3 July 2023
Kristin Danger, a former South Australian prison officer who falsely claimed more than $90,000 in disability payments has been sentenced to two years of home detention. A judge said Danger faced a “heightened risk of harm” if sent to prison.
Corrupt lawyer Dev Menon jailed for 14 years over Plutus Payroll tax fraud – 4 July 2023
Dev Menon, a lawyer who helped carry out one of Australia’s largest tax frauds has been sentenced to a maximum of 14 years in prison. The Plutus Payroll scam ran for about three years, up until 2017. The fraud resulted in the Australian Tax Office (ATO) losing out on more than $105 million before the scheme was shut down by the Australian Federal Police (AFP) in 2017.
ChatGPT and AI boom threatens bank fraud storm – 6 July 2023
Jeremy Asher, a fraud expert and lawyer at Setfords, believes AI can be used by fraudsters to “disguise as genuine people” so they can set up bank accounts in victims’ names. ChatGPT was launched in late November 2022 and with chatbots being released every month, Asher thinks AI could be a catalyst.
