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Investigation & Fraud News – Week ending 14 June 2023
11 stories this week:
Police looking for former bank teller accused of stealing $121,000 – 13 June 2023
Police are looking for Shepparton man Kuol Mawien Kuol. The 25-year-old is wanted on warrant for failure to appear in court in relation to fraud and drug matters. The fraud matters relate to allegations he stole $121,000 from bank accounts while he worked as a bank teller in Shepparton and Kyabram. https://www.sheppnews.com.au/news/police-looking-for-former-bank-teller-accused-of-stealing-121000/
Former Coles executive admits $1.9 million fraud – 14 June 2023
Aaron Baslangic, a former Coles executive has admitted stealing $1.9 million from the national supermarket giant. As a finance executive at Coles Online, Baslangic could authorise payments up to $75,000 and in early 2019 orchestrated 14 illegal payments. He pleaded guilty to two charges of obtaining property by deception, financial advantage by deception and making a false document.
https://www.sheppnews.com.au/national/former-coles-executive-admits-1-9-million-fraud/
Police commences investigation into allegations of fraud – 14 June 2023
Commissioner of Police David Manning said the Royal Papua New Guinea Constabulary is currently investigating and prosecuting a number of transnational economic crimes allegations involving Papua New Guineans and foreigners. Police have also commenced criminal investigation last month into the allegations of fraud and official corruption jointly reported on various local and international media platforms by ABC News and the Organized Crime and Corruption Reporting Project.
https://www.postcourier.com.pg/police-commences-investigation-into-allegations-of-fraud/
Australia’s Central Bank Owes Underpaid Workers Over $770,000 – 14 June 2023
Australia’s central bank will pay out just over A$1 million in back pay after an internal review found the bank had systematically underpaid more than a thousand current and former employees. Most of the money owed came from leave entitlements that should have been paid out when staff left the bank.
Update for developer’s daughter accused of $150m bank scam – 14 June 2023
Ashlyn Nassif has been charged with dishonestly obtaining a financial advantage by deception and publishing false or misleading material, after she allegedly submitted fake contracts to obtain a $150m bank loan. Ashlyn is accused of falsifying documents to meet a $10.5m pre-sale condition for the Sky View apartments in Castle Hill in Sydney’s northwest.
https://www.perthnow.com.au/news/update-for-developers-daughter-accused-of-150m-bank-scam-c-10977761
Worker allegedly defrauded wedding venue employer of $15K – 15 June 2023
A Tasmanian man has pleaded not guilty to defrauding his wedding venue employer of more than $15,000 over a period of more than two years. He is pleading not guilty to 94 charges of computer-related fraud and dishonestly.
Access to Digital version of herald sun required to read article.
European Union one step closer to passing world’s first artificial intelligence rules – 15 June 2023
The EU Commission’s proposed AI Act will regulate the use of artificial intelligence. The EU Commission’s proposed landmark laws, are designed to set a global standard for protecting people from the technology, following warnings from experts that AI presents an “extinction” risk similar to that of pandemics and nuclear war. The rules include a ban on AI for real-time biometric surveillance, emotion recognition, and also predictive policing.
‘Blow your brains out’: Scammer’s chilling threat after stealing $130k – 15 June 2023
Paul Trefry, a businessman has shared the chilling moment a scammer taunted and threatened him over the phone after stealing $130,000. Once Paul realised what was happening, he decided to record the call and unbelievably, the two men involved confessed to stealing his $130,000 and told him how they planned spending his money. The scammers also claimed to have purchased Paul’s personal details for just $20 and then rang back and told Paul they would ‘smash his head in’ and shoot him as well.
NAB issues urgent warning over phishing scam targeting customers with fake website – 15 June 2023
The Australian Competition and Consumer Commission (ACCC) says Australians have lost a record $3.1b in 2022, with total losses increasing by 80% from 2021. NAB has issued a warning to customers over criminals tricking users into losing control of their phones, computers and tablets. The scam page then lures customers into downloading a ‘”Business Portal” through a link, or a live chat option, which gives criminals remote software access and allows them to take control of the devices.
Whistleblowing amendments an important first-step – 15 June 2023
Initial amendments to Australia’s federal public sector whistleblowing law, the Public Interest Disclosure Act, are a welcome step towards much-needed comprehensive reform. Attorney-General Mark Dreyfus KC has committed to a second, wider phase of PID Act reform later this year. The government has also agreed to consult on the establishment of a whistleblower protection authority, with a discussion paper expected in the coming months.
https://www.hrlc.org.au/news/2023/6/14/pid-act-first-steps
‘Invisible robbers’ stealing millions in phone porting scam labelled as ‘terrifying’ – 16 June 2023
Business owner Claire Harrison fell victim to mobile porting fraud- where scammers gain control of a person’s identity and bank account by having their mobile number transferred to another device.
Investigation & Fraud News – Week ending 12 June 2023
11 stories this week:
Ballarat real estate agent Richard Hayden admits stealing from clients to give dying wife good end to life – 5 June 2023
A former Ballarat real estate agent has learnt he will likely received a prison sentence, after admitting to embezzlement of business money to fund a good end to life for his wife who was dying of cancer. Hayden’s withdrawal of almost $770,000 from business to personal accounts over 98 transactions in 2018 and 2019 left insufficient funds for the company to pay clients’ deposits for the sale of their homes.
What is the PwC tax scandal? Who is Peter-John Collins? Who knew about it? Why does it matter? – 5 June 2023
Consulting firm PwC is still under fire over revelations some of its senior partners misused confidential Australian government information to help big multinational companies avoid paying more tax. This article explains exactly what happened, who was involved, how it all started and next steps.
Stephanie Carroll sentenced in Geelong court for WorkSafe benefits fraud – 5 June 2023
Stephanie Carroll, a Victorian woman has been ordered to repay more than $60,000 after fraudulently receiving compensation payments for a work-related injury, despite working at a fitness studio. Carroll was sentenced to do unpaid community work and also pay restitution and costs.
The most powerful man in crypto is facing charges. Who is Binance founder Changpeng Zhao? – 6 June 2023
Binance founder Changpeng Zhao and his exchange have been charged with 13 offences and accused of operating a “web of deception”. It is alleged Binance has grown to a colossal size by systematically evading US laws. Binance has vowed to ‘defend the platform vigorously’.
https://www.abc.net.au/news/2023-06-06/binance-billionaire-changpeng-zhao-web-of-deception/102447196
Investigation into BHP’s underpayment of 30,000 workers launched by Fair Work Ombudsman – 6 June 2023
Australia’s Fair Work Ombudsman is investigating whether BHP’s “disappointing” underpayment of 30,000 employees was due to neglect. BHP has estimated it will cost around $400 million to pay back its employees. The ombudsman has also commenced legal action against the Commonwealth Bank and Commsec, alleging underpayments of more than $16 million to around 7,000 employees and taken legal action against Super Retail Group, whose retailers include Supercheap Auto, Rebel and BCF, and signed undertakings with Qantas, Westpac and David Jones.
Angus Dick convicted over payments claimed for bad back while working as escort and cleaner – 7 June 2023
Angus Dick has been fined for faking a bad back and fraudulently claiming thousands of dollars while working as escort and a cleaner. Dick did not declare any of the work activity and continued to claim he had not worked during the time he received compensation payment. He was convicted and ordered to serve 200 hours of unpaid work.
South Korean inquiry to investigate 237 more foreign adoptions suspected to be fraudulent – 8 June 2023
South Korea’s Truth and Reconciliation Commission says it will investigate 237 more cases of South Korean adoptees who suspect their family origins were manipulated to facilitate their adoptions in Europe and the United States. South Korea was ruled by dictatorships at the height of the practice, which was seen as a way to deepen ties with the West.
Naracoorte small business warns others to guard passwords after email hack attack – 8 June 2023
A small business owner in South Australia’s south-east is warning others to manage their passwords better after his email account was hacked and a customer almost handed over more than $100,000 to a scammer.
Arrest warrant granted for Sydney developer Jean Nassif over alleged fraud offences – 9 June 2023
Jean Nassif is wanted for alleged fraud offences, however NSW Police don’t know where the Sydney developer is. A court has also heard his daughter who is on bail, has allegedly made and submitted false or misleading sales contracts in order to access a $150 million loan for the construction of three buildings in Toplace’s Skyview development at Castle Hill.
Perth financial adviser Mark Sebo stands trial after allegedly stealing $1 million from clients – 9 June 2023
Mark Raymond, a Perth financial adviser is on trial accused of stealing more than $1 million from the superannuation accounts of eight clients and spending it on online gambling. Some of the clients had contacted Mr Sebo when they noticed the transactions and the court heard he had replied with text messages urging them to make a complaint to the Australian Securities and investments commission (ASIC). Mr Sebo is representing himself at the trial and he denies any wrongdoing.
Investigation & Fraud News – Week ending 2 June 2023
11 stories this week:
Judge sentences WA bookkeeper Kathleen Griffiths to more than three years jail over $750k theft – 29 May 2023
Kathleen Margaret Griffith, a 54-year-old bookkeeper has been sentenced to three years and four months jail for stealing nearly $750,000 from two employers over more than a decade. It appeared to be compulsive behaviour that had developed into a habit, and Griffiths was unaware of just how much she had taken.
PwC orders nine partners to go on leave amid tax scandal fallout – 29 May 2023
PwC has directed nine of its partners to take leave pending the outcome of an internal investigation into the leaking of confidential Australian government tax changes for large multinational corporations. The firm also announced that the chairs of its governance board and designated risk committee are stepping down, with two independent non-executive directors to be appointed to the governance board. PwC will also “ring fence” its provision of services to the federal government, with a standalone executive and governance board to oversee those operations from September onwards.
Adelaide’s SkyCity casino is coming under increasing scrutiny – here’s a look at why – 29 May 2023
South Australian authorities have just ramped up monitoring of the state’s only licensed casino, amid allegations of serious and systemic non-compliance with anti-money laundering and counter-terrorism financing laws. Dini Soulio, South Australia’s Liquor and Gambling Commissioner, has asked the casino to prepare a “program of work” for the commissioner, outlining what it’s doing to meet its regulatory obligations, including anti-money laundering, counter-terrorism financing, and gambling-related harm minimisation responsibilities.
https://www.abc.net.au/news/2023-05-29/adelaide-skycity-casino-is-under-further-scrutiny/102404906
Crown Resorts and AUSTRAC agree to $450 million fine over money laundering breaches – 30 May 2023
Crown Resorts and the Australian Transaction Reports and Analysis Centre (AUSTRAC) have agreed to a $450 million penalty over historical breaches of Australia’s anti-money laundering laws at its Melbourne and Perth casinos.
Crown’s CEO says the company is committed to rectifying its past “failingsThe $450 million penalty will require the final approval of the Federal Court in July.
Psychic scams are swindling Australians out of thousands of dollars, but no one is going after the culprits – 30 May 2023
According to ScamWatch, the amount extorted from Australians via psychic scams more than doubled between 2020 and 2022, jumping from $230,273 to $555,240. A psychic scam doesn’t involve a psychic making an inaccurate prediction. The psychic scam follows a specific pattern: and it all starts with a “curse”. They groom the vulnerable person to suspend their critical thinking at a low point in their lives and get them hooked on the scam.
Elizabeth Holmes enters Texas prison to begin 11-year sentence for notorious Theranos blood-testing hoax – 31 May 2023
Elizabeth Holmes was sentenced to 135 months prison for defrauding investors in her blood testing startup. Holmes admitted making mistakes at Theranos, but denied committing crimes during the trial. She will serve the sentence at a minimum security prison in Texas.
https://www.abc.net.au/news/2023-05-31/theranos-elizabeth-holmes-begins-prison-sentence/102413766
Estimates reveal 435 Chinese-made surveillance devices found at defence sites – 31 May 2023
Hundreds of Chinese-made surveillance cameras have been found at defence sites across Australia, well above the initial estimate of just one. Under Chinese national security law the Chinese Communist Party could request any of the surveillance material to be handed over. Government Defence is now working through a process of completely removing the devices from all sites by June 30.
Amazon to pay $38 million settlement over allegations of hoarding children’s data – 1 June 2023
Amazon has agreed to pay a $38 million civil penalty to settle the US Federal Trade Commission’s allegations it violated a child privacy law and deceived parents, by keeping for years children’s voice and location data, recorded by its popular Alexa, voice assistant. Amazon also has to overhaul its data deletion practices and impose stricter, more transparent privacy measures.
Mining giant BHP admits underpaying almost 30,000 Australian workers – 1 June 2023
Mining giant BHP has admitted it has underpaid almost 30,000 workers, dating back to 2010, and it will cost more than $400 million to make amends. BHP said a review suggested rostered employees in Australia had their leave incorrectly deducted on public holidays since 2010. It says it’s working to rectify the issue as quickly as possible for 28,500 workers.
https://www.abc.net.au/news/2023-06-01/bhp-wages-underpaid-28500-workers/102419890
Trust fund scam swindles agent and conveyancers ou t of $100k+ – 1 June 2023
Property professionals are being advised to exercise extra vigilance following a bank impersonation scam that collectively duped three Western Australian real estate and settlement agents out of over $100,000. The victims received a phone call from scammers posing as an authorised person from NAB and were told that a recent payment they had made from their trust account, had been blocked as it appeared suspicious or hadn’t gone through and the account needed to be reset. Article emphasises the importance of never disclosing personal details or access codes over the phone, even if the caller appears legitimate.
SA man charged for scamming $700k from elderly victims with non-existent scheme – 2 June 2023
An 80 year old South Australian financial planner has been arrested for deceiving six elderly people out of $700,000 with investment schemes that did not exist.
Investigation & Fraud News – Week ending 28 May 2023
11 stories this week:
Intelligence firm warns of scams involving AI “deep fake” voices – 24 May 2023
AI has made it easier for scammers to fool consumers and employees, with “deep fake” voice technology allowing criminals to impersonate companies, government agencies, and even family members. The outlook for voice cloning and its use in particular in banking fraud, disinformation, social engineering, copyright infringement, and more is bleak if we do not immediately adopt an industry-wide approach to mitigating associated risks.
The importance of being prepared for an Environmental, Social and Governance (ESG) investigation – 24 May 2023
Environmental, Social and Governance (ESG) policy remains an evolving field peppered with numerous issues, complexities and nuances. The article discusses the growing prospect of being subjected to an ESG investigation and the challenges it brings for organisations.
Cyber criminals are exploiting out-of-office emails to scam small businesses – 24 May 2023
Cybercriminals are using increasingly sophisticated means to fool business owners and staff, funnelling significant sums into fraudulent bank accounts. The federal government has committed $23.4 million to the Cyber Wardens initiative. This article details simple steps to boost small business cyber security.
Money mules are involved in the majority of scam reports, ACCC says – 24 May 2023
Jenny lost almost $300,000 to an elaborate scam using 11 ‘money mules’ who were involved in shifting her money offshore. Often recruited through job ads, money mules have become a big part of the scamming economy as they are out of the reach of law enforcement. The Australian Competition and Consumer Commission’s Catriona Lowe says they are a huge part of the scamming economy, which fleeced people of $3.1 billion last year.
How global organisations are combatting identity fraud – 24 May 2023
According to the Australian Institute of Criminology, the annual economic impact of identity crime is upwards of $3.1 billion. The need for digital identity verification tools has been growing for years, particularly in Australia with the uptake of digital services like telehealth appointments, online learning and applying for government benefits online, but major companies need to catch up by improving their digital checks and balances.
Melissa Caddick is dead, coroner confirms, but nature of her demise remains unknown – 25 May 2023
The NSW Coroner has found alleged Sydney fraudster Melissa Caddick is dead but says it’s not possible to draw conclusions about how or where she died. ASIC had been investigating an alleged Ponzi scheme run by Ms Caddick and an inquest into her suspected death heard investors lost between $20 and $30 million. At the time her home was raided, authorities suspected she had stolen in excess of $23 million.
https://www.abc.net.au/news/2023-05-25/melissa-caddick-nsw-coroner-rules-fraudster-is-dead/102390386
Sydney entrepreneur Andrew Spira denied bail in NT court after allegedly attempting to obtain illegal passport to flee the country – 24 May 2023
Andrew Spira, a “wealthy” entrepreneur who breached his interstate bail conditions to travel to the Northern Territory and allegedly attempted to fraudulently obtain a new passport to flee the country has been denied bail. He is charged by NT Police with a range of offences including using and possessing false documents, possessing an unlicensed firearm, drug possession and obtaining property by deception.
https://www.abc.net.au/news/2023-05-24/nt-andrew-spira-denied-bail/102387550
Convicted killer Alex Murdaugh indicted over allegations he stole money from family of dead housekeeper – 25 May 2023
Richard “Alex” Murdaugh, already convicted of murdering his wife and son, has been indicted on 22 counts of financial fraud, including charges involving the death of his housekeeper. It is alleged that the personal injury lawyer defrauded more than $5.2 million from an insurance settlement meant for the family of his housekeeper, Gloria Satterfield. The case attracted huge interest from around the world, and featured in a Netflix documentary.
https://www.abc.net.au/news/2023-05-25/alex-murdaugh-indicted-on-fraud-after-murder/102390264
PwC agrees to ‘stand down’ staff who knew about Treasury tax leak from government contracts – 25 May 2023
PwC has agreed to an order to “stand down” any staff who knew about Treasury tax leaks from working on any existing or future government contracts. The Government Finance deppartment asked suppliers to agree to a clause that would allow contracts to be terminated over poor handling of a breach. Police are continuing to investigate.
https://www.abc.net.au/news/2023-05-25/pwc-ordered-to-stand-down-staff-over-tax-leak/102392134
NSW Crime Commission to review Alex Greenwich allegations of ‘constrains’ on money laundering report – 26 May 2023
The NSW Crime Commission (NCC) has ordered staff to review allegations that its landmark report into money laundering through poker machines may have been “compromised”. Independent MP Alex Greenwich has now raised concerns about the accuracy of the data on money laundering, saying he had been told “the full extent” may not be reflected in the report. Among the allegations were that some pubs and clubs had been “tipped off” about upcoming compliance checks.
