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Investigation & Fraud News – Week ending 24 March 2023
15 stories this week:
Adelaide builder Joseph Biju Kavilpurayidathil jailed for fraud against homebuying migrants – 2 March 2023
Joseph Biju Kavilpurayidathil, pleaded guilty to 18 counts of dishonest dealings with documents for making fraudulent invoices and insurance certificates for some of the homes built through his company, Fenbreeze Homes, which has since gone into liquidation.
Police Whistleblower Pens 4-Page Letter Exposing SAPOL’s Highly Toxic, Dysfunctional Culture – 4 March 2023
A senior police officer, with over 35 years’ experience in the force, has written a scathing 4-page letter highlighting the worsening situation at the already dysfunctional SAPOL. The letter lists numerous impacts of the scheme, introduced by commissioner Grant Stevens and states that “SAPOL is now an organisation (business) bogged down in needless red tape and paperwork and it is only going to get worse”
Museum contractor arrested over alleged $90,000 fraud – 4 March 2023
A man has faced court for allegedly stealing $90,000 from the Australian National Maritime Museum, other businesses and individuals. It’s claimed the Macquarie Park man accessed the museum’s accounts payable system through his work as a contracted IT support worker to a third-party provider. He also allegedly made a series of unauthorised credit card purchases, after stealing financial information regarding several other businesses and individuals.
https://www.perthnow.com.au/news/crime/museum-contractor-arrested-over-alleged-90000-fraud-c-9935827
Scam protection from banks under scrutiny as Australians lose $53m in two months – 6 March 2023
Sharon Watkin was scammed out of tens of thousands of dollars by a sales representative claiming to be from Amazon. She says Australian banks need to do more to protect customers. Australians have already lost $53m this year, according to Scamwatch.
ASIC Bans Insurance Broker Permanently – 6 March 2023
ASIC has permanently banned former insurance broker Justin Edward Hampshire, from providing any financial services and being involved in carrying on such a business. ASIC found that Mr Hampshire incorrectly directed his clients to pay their insurance premiums into a business account he controlled when the money should have been paid straight into Ausure’s trust account. Mr Hampshire misappropriated $41,000 of four of his clients’ insurance premiums for his own benefit.
https://www.miragenews.com/asic-bans-insurance-broker-permanently-960242/
Son of former ATO deputy commissioner found guilty over role in $105m tax fraud – 7 March 2023
Adam Cranston, the son of former ATO deputy commissioner Michael Cranston, has been found guilty by a NSW Supreme Court jury over his role in a $105 million tax-fraud scheme. Adam and two co-accused were found guilty of conspiring with another person to dishonestly cause a loss to the Commonwealth, and conspiring with another person to deal with money more than $1 million, believing it to be proceeds of crime.
Perth Mint chief executive admits ‘doping’ controversy hurts reputation as WA opposition calls for royal commission – 7 March 2023
An investigation by the ABC’s Four Corners revealed the Mint had supplied gold to China between 2018 and 2021 that met broader industry purity standards, but in at least one instance, fell below Shanghai’s stricter standards. Internal reports allege the Mint then withheld evidence about the practice from its largest client, which an insider described as “a scandal of the highest level”.
Queensland whistleblower ‘vindicated’ by former Logan mayor Luke Smith’s guilty pleas – 8 March 2023
Sharon Kelsey, a whistleblower who was fired after reporting the misconduct of a former Queensland mayor, Luke Smith says his guilty plea on a corruption-related charge is a “complete vindication”. Smith pleaded guilty to receiving a ‘secret commission from an agent’ in 2016.
Review your whistle blower program now to meet ASICs new good practice guidance – 10 March 2023
Article describes current whistleblower laws and ASIC’s actions to date and where the good practices for whistleblowing programs came from. It also details ASIC announcement that it was taking legal action against TerraCom Limited, its managing director, chief commercial officer, former Chair and a former director, for the first time under these laws.
Charities watchdog to review fraud allegations made in parliament against Hillsong – 10 March 2023
Independent MP Andrew Wilkie, has used parliamentary privilege, to accuse Hillsong church of breaking financial laws in Australia and around the world, relating to “fraud, money laundering and tax evasion”. Hillsong disputed the allegations, labelling them as “out-of-context” or false. The Charities and Not-for-profits Commission stated it would investigate the allegations. https://www.abc.net.au/news/2023-03-10/federal-mp-accuses-hillsong-money-laundering-tax-evasion/102077080
Facebook Marketplace scams to be aware of when buying or selling goods online – 10 March 2023
A cybersecurity expert says Facebook is not doing enough to stamp out scammers on marketplace. Fake account owners insist on paying with PayID, which used a person’s mobile number or email address to link to their bank account. Scammers then try to convince people that they had transferred too much money, and request they transfer the difference back.
Financial services a key focus for ACCC this year – 10 March 2023
ACC plans the introduction of new laws prohibiting unfair contract terms, including a new penalty regime later this year. ACCC also has its eyes on scams, which continued to cause tremendous personal and financial damage to consumers and the Australian economy.
Psychoanalysts Put White-Collar Criminals on the Couch – 13 March 2023
White-collar crimes are nonviolent, opportunistic criminal activities by people of high respectability and status in their jobs. Article explains how leaders can proactively mitigate and defend against malfeasance by understanding the drivers of white-collar crime.
Police Charge Two Over $594K Theft, Fraud From Retail Store – 15 March 2023
Financial Crime Squad detectives have laid 159 charges against two former employees of a retail store following an investigation into alleged fraud and stealing offences. Police will allege in court that the man and woman obtained more than $594,000 from their employer.
https://www.miragenews.com/police-charge-two-over-594k-theft-fraud-from-966459/
Chinese businessman with ties to Trump administration figures arrested in $US1 billion fraud conspiracy – 16 March 2023
Guo Wengui, a business tycoon long sought by the government of China and known for cultivating ties to Trump administration figures including Steve Bannon has been arrested in New York on charges that he oversaw a $US1 billion ($1.5 billion) fraud conspiracy. He faces more than a century in jail if convicted.
Final conspirator found guilty of $105m Plutus tax fraud – 21 March 2023
A jury in the NSW Supreme Court found Patrick Willmott, 36, guilty of conspiring to defraud the Commonwealth and dealing with more than $1 million in proceeds of crime. The conspiracy defrauded the tax office of more than $105 million from 2014 to 2017 through a free payroll service known as Plutus Payroll that shifted tax money using a complex network of second-tier companies. Patrick Willmott is the fifth person to be jailed for the fraud.
Investigation & Fraud News – Week ending 17 February 2023
14 stories this week:
Why the AFP and ASIC are still using tech from a group under investigation – 26 February 2023
At the time of Nuix’s public float in late 2020, the $1.8 billion investigative software group claimed the globe’s corporate cops could not live without its data forensics tools. Now, Australian regulators – which have been using Nuix’s own programs to pursue the embattled tech group and its former executives for alleged breaches of companies laws – need to find out if this is true.
Access to digital version of SMH required to read this article.
Push for inquiry into consulting firms after PwC tax leaks – 27 February 2023
The Greens will push for a Senate inquiry into the way the federal government uses consultants. This is due to concerns about the PwC tax leaks scandal and the big four consulting firm’s inability to explain why it buried a damning report, into the unlawful robo-debt scheme.
‘Illegal’ strip searches of children among claims made by Queensland watch-house whistleblower – 27 February 2023
In a damning submission to the state’s youth crime bill, Brisbane watch-house officer Steven Marshall detailed what he described as “human rights breaches” that he witnessed at Brisbane Watch House during 2018 and 2019. He warns a new proposal by the Palaszczuk government to make breach of bail an offence for children could result in further chaos at watch houses, due to increase numbers. Queensland police have been contacted for comment.
Calls for national body to protect whistleblowers – 27 February 2023
A parliamentary inquiry is examining whistleblower protection reform, set to be implemented ahead of the start of the National Anti-Corruption Commission. Senior lawyer for the Human Rights Law Centre Kieran Pender said while other countries had set up broader bodies to oversee whistleblower protections, Australia was yet to establish a similar organisation.
https://au.news.yahoo.com/calls-national-body-protect-whistleblowers-020759811.html
Melbourne man accused of demanding crypto in bushfire threat – 28 February 2023
Cybercrime detectives have charged a Melbourne man after he allegedly threatened to start a bushfire if $5 million in cryptocurrency was not transferred within three days. The man was later arrested and charged with extortion with threat to endanger life and threat to destroy or damage property.
Australians urged to beware of new PayID impersonation scam – 28 February 2023
National Australia Bank (NAB) urged people who sell unwanted or used items online to watch out for a new PayID impersonation scam. Sammers will buy items using PayID but then claim that the transaction couldn’t be completed because the seller doesn’t have a PayID business account. Scammers will claim they’ve sent extra money to upgrade the account, send a fake email, and pressure the seller to reimburse them. But no money will ever appear in the seller’s account.
Surveillance tech Auror under lens after Greens Senator calls for “urgent review” – 28 February 2023
Greens Senator David Shoebridge has called for Parliament to urgently review the widespread use of retail surveillance technology. He believes an urgent review and regulation of crime intelligence platforms are required to safeguard the public against invasions of privacy and exploitation.
https://www.smartcompany.com.au/technology/surveillance-tech-auror-senator-review/
Ex-MAFS star charged over alleged boiler room scam makes surprising court request – 28 February 2023
Mr Daniel Webb, who rose to fame as one of the grooms of the popular reality show MAFS, is alleged to have pocketed hundreds of thousands of dollars dispersed by one of the companies linked to the cold-call scam syndicate. Police allege the boiler room scam, which included multiple people other than Mr Webb, would cold call victims and offer investments in products that did not exist and duped more than $20m from hundreds of victims.
Experts call for urgent whistleblower protections for migrant workers who report exploitation – 28 February 2023
Migrant workers generally endure exploitation in silence for fear of jeopardising their visa or ability to stay in Australia. Organisations and unions across Australia are calling for urgent whistleblower protections for migrant workers.
https://www.hrlc.org.au/reports-news-commentary/report-breaking-the-silence
Australian watchdog sues coal miner TerraCom over whistleblower violations – 1 March 2023
ASIC has filed a lawsuit against coal miner TerraCom Ltd (TER.AX) alleging it breached whistleblower protections, after a former employee claimed it had falsified the quality of its coal for export. (ASIC) has been investigating TerraCom over allegations of inflated coal quality in export documentation, since claims were first aired in early 2020, as part of an unfair dismissal case.
Former public servant avoids jail over JobSeeker fraud, magistrate accepts man was ‘driven by need, not greed’ – 1 March 2023
A former Commonwealth public servant will not spend time in jail for establishing a fictional Centrelink account in order to receive JobSeeker payments, later paid into his teenage son’s bank account. He was sentenced to six months in jail but was released on an 18-month good behaviour order and 60 hours of community service
SAPOL steals the win at 2023 Australian Fraud Awards – 1 March 2023
A South Australia Police (SAPOL) initiative titled ‘Operation Measure’ which targets retail shop theft has been recognised with a national award winning the Best Retailer and Policing Collaboration Award at the 2023 Australian Fraud Awards on 9 February 2023.
ASIC Bans Property Fundraiser over Fraud Convictions – 2 March 2023
ASIC has permanently banned Sean Colville Niven, of Perth, Western Australia, from providing financial services and engaging in credit activities. Mr Niven was convicted in the Perth Magistrates Court for two offences contrary to the Bankruptcy Act. Namely, making a declaration that he knew to be false, and for disposing of property intending to defraud creditors.
https://www.miragenews.com/asic-bans-property-fundraiser-over-fraud-958074/
Andrew Wilkie demands NSW Police launch investigation after Hillsong podcast – 3 March 2023
Independent MP Andrew Wilkie says NSW police must “act today” after a new podcast raised serious allegations about a Hillsong institution. News Corp Australia’s new podcast ‘Faith on Trial’ contains allegations from five different women that young, female students at the college were taught to physically “submit” to their husbands. Mr Wilkie said the allegations were nothing short of “shocking” and demanded immediate action.
Investigation & Fraud News – Week ending 17 February 2023
10 stories this week:
CBA’s anti-fraud tech move has angered this start-up founder – 10 February 2023
Colin Porter, who set up PayOK in 2021 to target the growing number of payment redirection scams, says CBA’s launch of its own solution rather than adopting an industry one will make it harder to solve a problem costing Australian businesses more than $200 million a year.
SMS registry could block scams that cost Australians more than $1m a day – 12 February 2023
The Australian Communications and Media Authority, will explore the implementation of an SMS sender ID register that would block cyber criminals from sending texts, appearing to be from agencies such as the Australian Tax Office (ATO), myGov and Australia Post.
Former NSW Adviser Banned by ASIC Permanently – 13 February 2023
ASIC has permanently banned Sean John Sweeney of Lindfield, New South Wales, after he was convicted of fraud offences on 4 November 2022. Financial advisers must act with honesty and integrity in their dealings with clients.
https://www.miragenews.com/former-nsw-adviser-banned-by-asic-permanently-946115/
Federal MP’s offices to have Chinese surveillance cameras replaced – 14 February 2023
Officials have confirmed they are ripping out Chinese-made surveillance cameras in the offices of federal MPs across the country, due to fears that it contains spy-ware.
Aussie bank makes clever move to stop sneaky new text scam – 14 February 2023
NAB is now placing bank phone numbers on the ‘Do Not Originate’ list to help reduce scam calls impersonating NAB numbers. The bank has also added additional protections to reduce scam messages appearing in legitimate bank text message threads. This has already resulted in a 50 per cent reduction in these types of spoofing cases, leading to a 70 per cent reduction in customer losses.
Commonwealth spends more than $7.6 million in prosecuting whistleblowers including Bernard Collaery, David McBride and Richard Boyle – 14 February 2023
The Commonwealth has racked up more than $7.6 million in legal fees pursuing whistleblowers, with the bulk of that bill relating to a now-dumped prosecution. The case against Bernard Collaery and Witness K cost the Commonwealth $5,510,829. Whistleblowing advocates have criticised the government for pursuing David McBride and Richard Boyle and the NSW Greens senator David Shoebridge, said it was a “lavish use of taxpayer funds”.
The major areas ASIC is patrolling for offenders this year – 15 February 2023
ASIC is targeting predatory lending, shonky insurance price promises and firms lying about their green credentials, as the major areas it will look to prosecute offenders in the coming year.
Alleged Deloitte fraudster ‘used CEO’s name to lure investors’ – 16 February 2023
Investors who poured millions of dollars into a suspected fraudulent scheme run by ex-Deloitte partner Amberjit Endow, say he convinced them to join, by telling them the Australian boss of the consulting giant was among the senior staff who were early investors. Investors estimate the case could involve more than $60 million.
(Access to digital version of SMH required to read article.)
Watchdog won’t probe fraud allegations against Adani – 16 February 2023
Australia’s corporate regulator has decided not to pursue allegations of fraud and stock manipulation leveled against the Adani Group. ASIC took a close look at the report and found that only a small portion of the allegations related to the Indian company’s Australian operation.
https://au.news.yahoo.com/adani-dodges-asic-probe-based-035555556.html
ATO says millions in annual tax could have been lost due to PwC confidentiality breaches – 16 February 2023
A former PwC partner was recently sanctioned by the Tax Practitioners Board for integrity breaches, after it was revealed he shared confidential briefings with colleagues, despite signing three confidentiality agreements. The ATO has told a Senate estimates hearing, that when the new laws took effect in 2016, “within weeks” an avoidance scheme was being marketed to overseas-based clients of PwC to circumvent the new arrangements.
Investigation & Fraud News – Week ending 10 February 2023
11 stories this week:
Money laundering syndicate believed to be linked to crime boss George Marrogi is broken up – 3 February 2023
Victoria Police has charged 24 people with money laundering offences as part of an investigation into a large-scale Middle Eastern organised crime syndicate. The arrests follow a two-year investigation, believed to be linked to crime figure George Marrogi, who is currently serving a 32-year jail sentence for murder and recently pleaded guilty to running a drug syndicate from jail.
https://www.abc.net.au/news/2023-02-03/arrests-over-money-laundering-victoria/101925680
Activision Blizzard will pay $35 million to settle SEC charges over its handling of complaints – 3 February 2023
Activision Blizzard (video game company) will pay $35 million to settle charges from the Securities and Exchange Commision that it “failed to maintain disclosure controls and procedures to ensure that the company could assess whether its disclosures pertaining to its workforce were adequate.” The settlement also resolves charges that Activision Blizzard violated whistleblower protection regulations. The company is settling the charges without admitting to or denying them.
Papas fled Australia while pretending to be in Perth, court hears – 7 February 2023
Bill Papas, accused fraudster and alleged mastermind behind a $400 million bank fraud, told his banker he was on his way to Perth to deal with issues raised by Westpac, but was instead fleeing the country from Sydney, the Federal Court has heard.
Access to digital version of AFR required to read article
Australian bank admits botch-up, refunds prominent Kiwi entertainer A$30k after Herald investigation – 7 February 2023
A Sydney-based St George Bank recovered a third of a prominent Kiwi entertainers stolen money last year after learning of a fraud, but did not secure the cash and allowed it to be withdrawn by the thieves. The case raises questions about the Australian bank’s internal processes in dealing with fraud and recovering stolen money.
ClubsNSW settles case with terminally ill whistleblower Troy Stolz – 7 February 2023
Whistleblower Troy Stolz has announced his long-running legal battle with ClubsNSW has been “resolved” after reaching an out-of-court settlement.
It is not in the public interest to jail people for telling the truth. Labor must end these whistleblower cases – 8 February 2023
Kieren Pender discusses how Two Australian whistleblowers (David McBride, Richard Boyle) are expected to face trial later this year for speaking up about government wrongdoing. He says both cases are an injustice of the highest order. If either or both of these brave men go to jail for doing the right thing, for telling the truth, it will permanently cloud the Albanese government’s legacy.
Commonwealth offices ‘riddled’ with security cameras linked to Chinese government – 9 February 2023
An audit has uncovered more than 900 units of surveillance equipment built by companies linked to the Chinese government exist within Commonwealth government buildings, including Defence and Foreign Affairs offices. The Shadow Cyber Security Minister says the government needs a plan to remove them.
ICAC review of Batchelor Institute recommends ‘critical’ changes to corporate culture – 9 February 2023
The NT’s ICAC has audited the Batchelor Institute and found several financial anomalies, flawed governance, and corporate culture. The Batchelor Institute has accepted all 27 recommendations.
Whistleblower Jeff Morris labels integrity reforms hypocritical as government presses ahead with prosecutions – 9 February 2023
Jeff Morris, whose decision to lift the lid on corrupt practices within the CBA which in turn helped trigger the banking royal commission, stated in a public interest disclosure (PID) regime submission, that the changes need to go much further, with the creation of a “Whistleblower Protection Agency”.
Sydney man spared jail after ‘opportunistic’ Optus data blackmail attempt – 7 February 2023
Dennis Su, 20, sent text messages to 92 people in September after finding their information on a website that published data from the Optus breach. He has been spared jail but must complete 100 hours of community service.
https://www.abc.net.au/news/2023-02-07/sydney-man-spared-jail-optus-blackmail-attempt/101941596
Partygoers warned to beware of suspicious events when buying tickets online- 9 February 2023
The Cairns Show Association found out tickets were being sold for a music event at its showgrounds without its knowledge. Social media users are being warned to closely scrutinise all online promotions due to the prevalence of tickets being sold for fictitious or risky events.
