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Investigation & Fraud News – Week ending 21 April 2023
12 stories this week:
Sydney man accused of accepting money for selling national security information – 14 April 2023
The AFP has been charged a NSW man with a foreign interference offence, after he allegedly accepted money in exchange for information about national security issues. It is alleged the Australian man compiled reports for the officers, and received payment for them. The 55-year-old businessman was arrested at his Bondi home and will appear in court.
https://www.abc.net.au/news/2023-04-14/afp-charge-man-with-foreign-interference/102226298
Catalytic converter thefts on the rise in Australia as rare metal values climb – 16 April 2023
There has been an increase in catalytic converter thefts in Australia. Thieves steal converters from a car’s exhaust system as they contain precious metals. Automotive industry groups want harsher penalties and better devices to stop the thefts.
ACC calls for united front as scammers steal over $3bn from Australians – 17 April 2023
The latest Targeting Scams report has revealed Australians lost a record $3.1 billion to scams in 2022, as government, law enforcement and the private sector look to improve collaborative efforts to support the community in the fight against scams. This is an 80 per cent increase on total losses recorded in 2021. Investment scams were the highest loss category ($1.5 billion), followed by remote access scams ($229 million) and payment redirection scams ($224 million).
New AFP headquarters to solve crime faster – 17 April 2023
Criminal investigations are becoming more complex as offenders take advantage of advances in technology. The AFP new Victorian headquarters will have the technology to stay ahead of criminals. The upgraded facilities, ensure the AFP is equipped to deploy at a moment’s notice to fight crime. They are backed by specialists, with the latest technology to process and analyse vast amounts of information, in real-time to identify patterns in criminal activity to ensure focussed disruption efforts.
https://www.afp.gov.au/news-media/media-releases/new-afp-headquarters-solve-crime-faster
Chatting with a hacker – 17 April 2023
The people behind the cyber attacks on Australia are highly organised criminal gangs, often based in Russia, with dozens of employees and even HR departments. Security researchers have linked the Medibank attack to REvil – one of the most successful cyber gangs of all time. With the help of researchers, a conversation was held with a hacker who says he’s worked for them.
Former Gold Coast property promoter jailed for scamming millions of dollars from pensioners – 17 April 2023
A former Gold Coast property promoter who scammed nearly $2 million from investors – most of them pensioners – has been jailed for more than eight years for fraud. Investors, including pensioners, were owed more than $9 million when Mr Silver’s companies went into liquidation.
Why accused criminals are challenging evidence in Sydney from one of the world’s biggest police stings – 18 April 2023
A landmark committal hearing for more than 50 people is being held in a Sydney court this week, with the group challenging the crucial source of evidence used by investigators involved in Operation Ironside, the AN0M app. It is alleged black-market phones installed with the so-called “Trojan horse” app were being passed around the underworld from 2018 in the belief they were off the police radar. The group of alleged bikies and criminals’ lawyers will explore whether that evidence was legally intercepted.
Save the Children report shines light on child rights violations in Australia’s youth justice system – 19 April 2023
Widespread child rights abuses in Australia’s youth justice system have detailed in a new ”Save the Children report”, which calls for an urgent nationwide overhaul to ensure better outcomes both for children and the community. The report reveals every Australian state and territory jurisdiction has a long way to go to uphold the rights of children across the areas of policing, bail and remand, diversion, court processes, sentencing practices, and detention. WA, QLD and the NT were the worst offenders when it comes to violating the rights of children in youth justice facilities.
AI called upon as cyber crime surpasses human capability – 19 April 2023
The cyber crime industry has already evolved beyond human capability and is increasingly seeing the adoption of artificial intelligence models to help stop bad threat actors from stealing sensitive data. Jonathan Jackson, BlackBerry’s Asia Pacific and Japan director of engineering, said the adoption of AI to fight cyber crime has been a long time coming.
‘It was instantaneous’: Chasing the crypto – 21 April 2023
It is the ultimate in cyber-chess. The crooks are constantly looking for a weakness to exploit while the cops are searching for a weakness in the criminal organisations’ defences. Cyber-cop Detective Sergeant Dion Achtypis lists some key facts. Australia has the second-highest concentration of dark net drug traffickers in the world, just behind the Netherlands. A staggering $50 billion of bitcoin changed hands in the past 24 hours. The World Economic Forum lists cyberattack and data theft in its top 10 risks, between extreme weather events and armed conflict. Sixty per cent of human communication is data-based.
Victoria to raise the age of criminal responsibility to 12, youth advocates push for 14 – 21 April 2023
Victoria will raise the age of criminal responsibility from 10 to 12, a decision advocates say ignores international best practices and will not improve child welfare. Advocates say the age needs to be raised further to 14 in order to protect children.
Optus lawsuit a ‘wake-up call’ to corporate Australia – 21 April 2023
A class action representing 100,000 people against Optus over a massive data breach has begun. While Optus has said no customers fell victim to financial loss or crime as a result of the hack, the law firm argues privacy is essentially priceless, and “time is money” after people were forced to take multiple steps to protect themselves after their information was stolen.
https://www.perthnow.com.au/news/crime/optus-sued-by-vulnerable-victims-of-data-breach-c-10410631
Investigation & Fraud News – Week ending 14 April 2023
9 stories this week:
Former Courgette chef James Mussillon jailed for money laundering and perjury – 11 April 2023
A renowned Canberra chef has been sent back to jail for laundering hundreds of thousands of dollars through his restaurant for an alleged drug dealer, as well as perjury and dishonesty charges. The court heard that Mussillon pretended that his co-accused was an employee at the restaurant, and laundered more than $350,000 disguised as payments for work, over a period of about five years. James Mussillon pleaded guilty to five charges, including one of perjury, last year.
Sydney family lose $200k life-savings in Suncorp spoofing scam – 11 April 2023
The Sydney family are “devastated” by the disappearance of almost $250,000 and can’t afford groceries and even face having to sell their home. Scammers are making it appear as if customers are receiving communication from the bank’s number. The victims believe Suncorp’s security process appeared “inadequate” and also claims the fraud department told him the hackers “were a step ahead” of the bank.
Next step in $36.5m investment scheme fraud case – 12 April 2023
Chris Marco allegedly defrauded nine investors out of $36.5m between July 2013 and October 2018 through an unregistered investment scheme, with at least one investor conned out of $10m. The charges stem from an ASIC investigation into Mr Marco and his company AMS Holdings (WA) Pty Ltd. He was also banned from carrying on a financial services business without an Australian Financial Services Licence.
Theranos’s Elizabeth Holmes loses bid to stay out of prison during appeal of sentence – 12 April 2023
A US district judge has denied Elizabeth Holmes’s bid to remain free on bail while her lawyers try to appeal her November prison sentence. The Theranos founder will have to surrender to authorities on April 27 to start the more than 11-year jail term. It comes 10 months after a jury found her guilty on four counts of fraud and conspiracy against the Theranos investors.
Homeowner wins fire dispute after insurer alleges fraud – 13 April 2023
A claimant whose property was severely damaged by fire will be compensated after successfully challenging an insurer’s decision to decline the claim over allegations of fraud. The Australian Financial Complaints Authority (AFCA) accepted that there was reasonable cause for the insurer to investigate the claim, but said there was insufficient evidence to show that the fire was deliberately lit. It required the insurer to accept the claim and award the homeowner $2000 for non-financial losses caused by the insurer’s handling of the claim as well as a $5000 contribution to his legal costs.
https://www.insurancenews.com.au/daily/homeowner-wins-fire-dispute-after-insurer-alleges-fraud
Australian court bans social media influencer ‘ASX Wolf’ from giving financial advice – 13 April 2023
Queensland justice Kylie Downes has issued an order forbidding Tyson Robert Scholz from hosting paid online groups in which messages are exchanged about share trades without an Australian Financial Services Licence.
Trump spends day in New York under questioning in state civil fraud case – 14 April 2023
Forrmer U.S. President Donald Trump returned to New York to answer questions under oath on Thursday in a $250 million business fraud lawsuit brought against him by the state attorney general. The lawsuit claims Trump, three of his adult children and others participated in a decade-long scheme to manipulate property values and his net worth to obtain favorable loans and tax and insurance benefits.
https://www.reuters.com/legal/trump-due-back-new-york-questioning-state-civil-fraud-case-2023-04-13/
How to stop internal fraud – 14 April 2023
Forensic accounting and corporate investigations firm Warfield and Associates investigated 102 cases in Australia between 2012 and 2022, revealing more than $350 million was stolen by internal fraud. The research from the report discovered that ‘lifestyle improvement’ was the main motivating factor in 44 cases (43%) while gambling addiction was responsible for another 39 cases (38%). Article aslo explains signs to watch out for and controls and checks to prevent internal fraud.
https://www.hcamag.com/au/specialisation/employment-law/how-to-stop-internal-fraud/442701
Government pledges to find ways to stop technology-facilitated abuse – 15 April 2023
The Australian Office of the eSafety commissioner says nearly all victims of domestic and family violence – more than 99 per cent of them – have experienced technology-facilitated abuse. The federal government has pledged to tackle the issue, announcing a grants program which aims to put a stop to that technology-based abuse.
Investigation & Fraud News – Week ending 9 April 2023
9 stories this week:
Bank impersonation scams robbing Australians of their life savings – 30 March 2023
Scammers are using new technology to trick their victims, by making the call appear to come from the bank’s legitimate phone number or by sending a text that appears in the same conversation thread as genuine bank messages. Scamwatch received 14,603 reports about bank impersonation scams in 2022, resulting in more than $20 million in losses. Total losses to phone and text scams increased significantly last year, with over $169 million lost.
US accuses Fugees rapper of illegal lobbying with Malaysian financier Jho Low – 31 March 2023
A US prosecutor has accused Grammy Award-winning rapper Prakazrel “Pras” Michel of The Fugees hip hop group of illegally taking tens of millions of dollars to lobby the US government on behalf of a Malaysian financier and the Chinese government. Michel is being tried on 11 criminal counts, including lobbying schemes to influence the administrations of former presidents Barack Obama and Donald Trump.
Whistleblower laws under scrutiny after being tested in court – and failing – 3 April 2023
Australia’s current whistleblower protection laws have been tested in court and found to be no defence for public servants accused of high-level breaches. Richard Boyle used the federal Public Interest Disclosure Act to ask for 23 of the 24 charges against him to be dropped, but his request was denied. The Federal Government has wanted whistleblower laws strengthened in time for the new National Anti-Corruption Commission to start operating.
Shipbuilder Austal sinks on former U.S. executives’ indictment for financial fraud – 3 April 2023
Australian shipbuilder Austal Ltd shares went down after the U.S. Department of Justice (DOJ) charged three former employees for “allegedly making or causing to be made false and misleading statements about Austal USA’s performance and financial condition between 2012 and 2016. The company since then has announced a write-back to adjust its revenue and profit, settled an investigation by Australia’s securities regulator, and conducted its own investigation into the matter, which resulted in the resignation of the president of Austal USA.
Up to $3 billion in taxpayer money lost to Medicare fraud and non-compliance annually, government review finds – 4 April 2023
Between $1.5 billion to $3 billion is being lost to Medicare fraud and non-compliance every year, according to an independent review that warns the overly-complex system is out of date and risks bleeding more taxpayer money.
https://www.abc.net.au/news/2023-04-04/medicare-fraud-non-compliance-report/102183698
‘Down Under Barbie’ Skye Louise Rivers faces string of fraud charges – 5 April 2023
Instagram influencer Skye Louise Rivers is yet to enter an official plea on more than 150 charges of fraud related to what police allege was a “sophisticated” scheme of using other people’s information to open bank accounts and set up lines of credit for two years.
Donald Trump pleads not guilty to 34 felony fraud charges over alleged hush money payments during 2016 election campaign – 5 April 2023
Donald Trump has been formally charged with falsifying his business records in a bid to hide damaging information during the 2016 presidential election. The charges relate to alleged payments made during his 2016 presidential campaign. He pleaded not guilty to all counts, and was released without a requirement to post bail.
https://www.abc.net.au/news/2023-04-05/donald-trump-pleads-not-guilty-to-criminal-charges/102183764
Allegations of $150,000 fraud result in woman arrested in Yass – 6 April 2023
A Yass woman was charged with three counts of dishonestly obtaining property by deception as well as single counts of dealing with property suspected to be the proceeds of crime and knowingly dealing with proceeds of crime.
https://aboutregional.com.au/allegations-of-150000-fraud-result-in-woman-arrested-in-yass/
Hepburn mayor may sue OpenAI for defamation over false ChatGPT claims – 6 April 2023
A regional mayor may take unprecedented legal action to sue the creator of AI chatbot ChatGPT for defamation, after the program falsely claimed he was a guilty party in a foreign bribery scandal in early 2000s. Legal experts say the case is in uncharted legal territory.
Investigation & Fraud News – Week ending 31 March 2023
14 stories this week:
Two charged over alleged $3.5 million self-managed superannuation fraud – Strike Force Gulgin – 23 March 2023
A man and a woman have been charged with 84 offences after allegedly defrauding several clients of $3.5 million in a self-managed super fund scheme. It is alleged Police will allege in court that the pair, who were accountants based in Sydney, established self-managed super funds on behalf of more than 20 people before allegedly misappropriating about $3.5 million between 2007 and 2020.
Australia Dismantles BEC Group That Laundered $1.7 Million – 27 March 2023
The AFP announced the arrest of four individuals accused of laundering more than $1.7 million from BEC attacks, Facebook marketplace scams, and fraudulent superannuation investments. The suspects, two men and two women, are charged with possessing and producing false documents, dishonestly dealing in personal financial information, and dealing in proceeds of crime.
https://www.securityweek.com/australia-dismantles-bec-group-that-laundered-1-7-million/
Australia: Workplace surveillance and employee monitoring on the rise – 28 March 2023
Workplace surveillance involves monitoring and collecting data on what employees are doing, typically via software installed on their computers. Article tackles questions such as: Is workplace surveillance legal in Australia?; Is it legal to monitor or record phone calls or videos in Australian workplaces?; Does workplace surveillance lead to higher productivity?; and does workplace surveillance can damage morale and culture?
Shipping container scams on the rise, as ACCC calls on providers like Facebook to act – 28 March 2023
The ACCC said consumers lost $1.8 million to shipping container scams in 2022, with 499 incidents reported. The scammers impersonate real Australian companies online. Now the ACCC wants Facebook and other platforms to take more responsibility for shutting scams down.
Banks should not pick up entire $4b scam tab, minister says – 28 March 2023
Financial Services Minister Stephen Jones opposes a “blanket rule” that banks be required to fund scam recovery. Stating that, if they they’ve met that standard, and done what they can, they shouldn’t still end up with the bill. Advocacy groups including the Consumer Action Law Centre have called for banks to be liable for losses incurred by customers who are scammed and for banks to invest more heavily in fraud prevention.
ASIC investigates ASX for CHESS breaches – 29 March 2023
The corporate regulator is investigating whether the ASX and its directors and officers have breached their legal obligations during the bungled CHESS replacement project. Chess is the system used to record transactions on the financial markets. The investigation would focus on oversight of the CHESS replacement program and statements and disclosures made by, or on behalf of, ASX as to the “status of the program”.
https://au.news.yahoo.com/share-market-operator-probed-bungled-231043775.html
FTX’s Sam Bankman-Fried charged under US law with bribing Chinese officials in new indictment – 29 March 2023
FTX founder Sam Bankman-Fried has been charged with directing $US40 million ($59.6 million) in bribes to one or more Chinese officials to unfreeze assets relating to his cryptocurrency business. He has pleaded not guilty to 8 of the 13 counts he faces. He was previously charged with eight criminal violations, ranging from wire fraud to money laundering to conspiracy to commit fraud.
Former Courgette chef James Mussillon described as ‘socially incompetent’ in money laundering case – 29 March 2023
Reknown Canberra chef, James Mussillon has pleaded guilty to money laundering, perjury and obtaining property by deception.
The court heard he paid fake wages to another man who did not actually work at Courgette Restaurant. A psychiatrist has diagnosed Mussillon with autism and post-traumatic stress disorder.
Supreme Court of Queensland bans Gladstone man Surendra Raghoobar from practising law – 29 March 2023
The Supreme Court of Queensland has banned Gladstone’s Surendra Raghoobar from practising law after it found he engaged in legal practice despite not being an Australian legal practitioner. Mr Raghoobar, claimed he did not provide legal services and was only assisting clients with tasks like proofreading and editing documents.
https://www.abc.net.au/news/2023-03-29/gladstone-man-banned-practising-law/102157798
Why ATO whistleblower Richard Boyle will face criminal tria – 30 March 2023
A court has ruled that Richard Boyle, the man who blew the whistle on “intimidating” debt collection tactics by the Australian Taxation Office is not protected from criminal action because he failed to disclose crucial evidence at the right time.
Whistleblower ruling ‘makes it harder for Australians to speak up’
Kieran Pender, senior lawyer at the Human Rights Law Centre, said the decision was “catastrophic for Australian whistleblowers” and would “make it harder for Australians to speak up about human rights violations, government wrongdoing and corporate misdeeds”.
Senator Andrew Bragg proposes private bill to regulate cryptocurrency services – 30 March 2023
The proposed Digital Assets (Market Regulation) Bill 2023 aims to protect consumers and promote investment by recommending regulatory changes for stablecoins, licensing of exchanges and custody requirements. If passed, the bill would require a licence from the Australian Securities and Investments Commission or a foreign licence for anyone operating a cryptocurrency exchange, custody service or stablecoin issuer in Australia.
Canberra man jailed for complex fraud linked to organised crime – 31 March 2023
A Canberra man has been jailed for his role in an elaborate $13 million fraud with links to transnational and serious organised crime groups and after receiving $136,535 for his role in the scheme. A coordinated investigation of a transnational and serious organised criminal syndicate allegedly using labour hire and payroll companies associated with the building and construction industry to defraud the Commonwealth.
Donald Trump indicted by Manhattan grand jury on more than 30 counts related to business fraud – 31 March 2023
Donald Trump faces more than 30 counts related to business fraud in an indictment from a Manhattan grand jury, according to two sources familiar with the case – the first time in American history that a current or former president has faced criminal charges.
https://edition.cnn.com/2023/03/30/politics/donald-trump-indictment/index.html
