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Investigation & Fraud News – Week ending 2 July 2022
9 stories this week:
Cabinet backs new money laundering laws to target organised crime – 23 June 2022
The NSW government will introduce laws to confiscate unexplained wealth from criminal gangs and ban the use of encrypted devices as part of long-waited reforms to combat money laundering and organised crime. The new measures are designed to cripple the finances of crime networks, stopping criminals from profiting from their actions and incapacitating them financially.
Access to digital version of SMH required to read article
Man sentenced in Batemans Bay court for dealing with proceeds of online puppy scam – 27 June 2022
Steven Rootsey, from NSW has been fined $6,000 and sentenced to a two-year community corrections order for dealing with nearly $50,000 in swindled funds related to an online puppy scam. He was asked to convert money to cryptocurrency by an unknown person via Snapchat and was promised 10 per cent of the funds in return.
Queensland IT guru found guilty of $73,000 insurance fraud – 28 June 2022
Anthony Onyeka Okeke tricked Allianz Insurance and QBE Insurance into paying insurance claims, for four vehicles after he staged or fabricated a series of crashes. He was found guilty of defrauding insurance companies of more than $40,000 and trying to dishonestly get more than $30,000.
Government hunts down fake businesses with intensified fraud crackdown – 28 June 2022
The Australian Taxation Office (ATO) and the Australian Federal Police (AFP) executed raids across the country to crack down on individuals suspected of defrauding by inventing fake businesses and ABNs to claim false refunds.
Zhenya Tsvetnenko handed eight-year jail term in US for multi-million-dollar text message scam – 29 June 2022
Perth man Zhenya Tsvetnenko has been sentenced to eight years in a federal US prison, for his role in a multi-million-dollar text messaging scam. Tsvetnenko and his co-conspirators defrauded hundreds of thousands of mobile telephone consumers in the United States by placing unauthorised charges on their mobile phone bills. The practice – known as “auto-subscribing”.
‘Cryptoqueen’ accused of $US4 billion OneCoin fraud added to FBI’s most-wanted list – 1 July 2022
Ruja Ignatova is the 11th woman in history to be added to the FBI ten most wanted fugitive list. Dr Ignatova launched OneCoin in 2014 with Sebastian Greenwood, who is currently in prison awaiting trial. The catch with OneCon was that there was no blockchain, a piece of information which keeps a record of transactions made by cryptocurrencies. This meant the coin had no value.
Adelaide’s SkyCity casino faces independent review as casino industry probe widens – 1 July 2022
South Australian authorities have launched an independent review of Adelaide’s SkyCity casino, in light of similar inquiries into casinos interstate. AUSTRAC’s has had concerns with ”ongoing customer due diligence” and adopting, maintaining, and complying with an anti-money-laundering and counter-terrorism financing program.
https://www.abc.net.au/news/2022-07-01/sa-independent-review-into-adelaide-skycity-casino/101202426
Australia to review carbon offsets following ‘fraud’ allegations – 1 July 2022
Australia’s new Labor government has appointed a top scientist to lead a six-month review of the country’s carbon credits, following allegations of fraud e.g projects earning credits for growing trees that were already in place and getting credits for growing forests on land that cannot sustain forests.
https://www.nasdaq.com/articles/australia-to-review-carbon-offsets-following-fraud-allegations
Jail a possibility for Guy Sebastian’s former manager, as singer says guilty verdict is ‘a lot to absorb’ – 1 July 2022
Guy Sebastian’s former manager Titus Day has avoided jail, for now, as he awaits to be sentenced for embezzling more than $600,000 from the singer. The 49-year-old will be sentenced on September 16.
Investigation & Fraud News – Week ending 24 June 2022
10 stories this week:
Corporate adviser Anthony Torre charged with ripping almost $2 million from client – 17 June 2022
Mr Anthony Paul Torre appeared at the Perth Magistrates Court charged with eight counts of fraud and five counts of stealing pursuant to sections 409 and 378 of the Criminal Code (WA). It is alleged that Mr Torre stole, or with intent to defraud obtained, approximately $1.882 million from his clients and used the funds from his clients’ accounts for his own benefit.
https://regulatory.news/anthony-torre-charged-with-stealing-and-fraud/
Tax office and federal police conduct raids over billion-dollar tax scam spread on TikTok and Facebook – 17 June 2022
Tax officers and federal police have raided a dozen locations across Australia in the past three days, as part of an investigation into a billion-dollar tax scam that has gone viral on social media. The number of people involved now is about 70,000, with the ATO investigating $850m in payments to 40,000 people.
Transport company fined $89,000 for breaching fatigue management laws – 17 June 2022
JSS Logistics Pty Ltd, a transport service company has been fined a total of $89,000 after being convicted on 24 charges under the State’s workplace fatigue management laws. The audit found the company’s drivers did not have the rest breaks and non-work time required by the regulations, and that the required records were not kept to the standard required by law.
https://www.miragenews.com/transport-company-fined-89000-for-breaching-802950/
One word saves Perth man’s $6m fortune from being stolen by hackers – 17 June 2022
Business email compromises, have “exploded” over the last two years against the backdrop of the Covid-19 pandemic. A Perth businessman nearly lost $6 million to hackers but one misspelt word saved his fortune from falling into the wrong hands and disappearing forever.
Corporate culture, not ‘bad apples’ to blame at Star, inquiry told – 17 June 2022
An inquiry into the ability of the Star Sydney to hold a casino licence, has revealed that it has failed to realise the effect of its terrible corporate culture. The NSW gaming regulator is hearing submissions from lawyers on behalf of witnesses at the long-running inquiry, which has probed allegations of money laundering, organised crime, fraud and foreign interference at Star and its Sydney venue.
Access to digital version of SMH required to read article
Aussies have lost over $205 million to investment scams, says ACCC – 17 June 2022
The ACC says that since the start of the year, Australians have lost over $205 million to investment scams. That’s a 116% increase on the same period last year. In 2021, Australians lost over $320 million in scams in total, with the majority of the monetary loss coming from investment scams-about $177 million-and dating scams-about $56 million. Article also lists how to spot a scam.
https://mozo.com.au/family-finances/aussies-have-lost-over-205-million-to-investment-scams-says-accc
50 businesses under investigation by FWO – 22 June 2022
Fair Work Ombudsman Sandra Parker has announced the regulator’s strategic priorities for the year ahead, include investigating large corporate underpayments. Currently 50 large corporates have self-reported non-compliance and since mid-2021, they have commenced court actions against Woolworths Group, Commonwealth Bank and Coles. http://www.ragtrader.com.au/news/50-businesses-under-investigation-by-fwo
https://www.nationaltribune.com.au/uni-wage-theft-investigation-welcome-sign/
Paul Whyte corruption hearing told he started charging for fake services two days after being hired – 22 June 2022
Paul Ronald Whyte, a senior public servant who perpetrated one of the biggest rorts of taxpayer funds in recent Australian history, invoiced a company for work never provided on his corporate credit card. The commission is examining how a person in such a senior position as Whyte, was able to systematically defraud the state to such an extent and whether the governance of the department had contributed to or enabled it.
https://www.abc.net.au/news/2022-06-22/graham-searle-testifies-at-paul-whyte-ccc-hearing/101172634
NT ICAC failed to offer procedural fairness to Darwin Turf Club board member in investigation into $12 million grandstand grant, court finds – 23 June 2022
The Northern Territory’s anti-corruption watchdog failed to offer procedural fairness to board member Damien Moriarty, before making findings of improper conduct in a major corruption investigation. Findings were over the handling of a $12 million government grant for the new facility at Darwin’s Fannie Bay racecourse.
Mining companies accused of corporate failure in shocking WA FIFO sexual harassment report – 23 June 2022
A West Australian parliamentary committee has urged the state’s resources sector to consider a register for perpetrators of serious sexual harassment on fly-in, fly-out sites similar to a working with children check. It was one of 24 recommendations made by the parliamentary inquiry into sexual harassment against women in the mining industry, triggered after a spate of alleged sexual assaults on WA FIFO workers.
Access to digital version of SMH required to read article
Investigation & Fraud News – Week ending 17 June 2022
13 stories this week:
Religious fraudster jailed for stealing $2.7m from worshipper and gambling it away at casin – 10 June 2022
Munir Muzafar Fakhrud Hassanali who defrauded a fellow member of a Perth religious community out of $2.7 million and gambled most of it away, has been sentenced to six years and nine months jail. He was found guilty of 82 fraud offences committed between June 2017 and November 2019.
Western Sydney man and woman charged over covid-19 payment fraud – 10 June 2022
Two Malaysian nationals have been charged over their alleged roles in a syndicate suspected of fraudulently claiming more than $440,000 in COVID-19 Disaster Payments. Police allege customers who had employed the online service, had provided identity documents to the ‘agents’ and some reportedly paid up to $1000 for the agents to facilitate their claims.
Prosecuting UK Corporate Fraud May Be About to Get Much Easier – 10 June 2022
New Long-awaited UK law reforms include an option, that would make it a criminal offence, for a company to fail to prevent a fraud, according to a series of proposals by the Law Commission. The laws would help boost conviction rates, by allowing authorities to target companies, that failed to put measures in place to prevent their own staff committing fraud.
Isolation. Strip-searches. Rape: Inside a Tasmanian youth detention centre – 10 June 2022
In October 2019, Alysha was hired to introduce better care to the Ashley Youth Detention Centre in Tasmania. She revealed her belief that sexual and other abuse of vulnerable children and teen detainees was systemically covered up or mishandled. Eventually, she raised her concerns with two Tasmanian premiers, as well as a commission of inquiry. To date, 32 Tasmanian public servants have been stood down pending the commission’s findings. The Ashley Youth Detention Centre is set to close in three years’ time.
Man’s $651k horror after Googling partner’s name – 11 June 2022
Luke Allen has accused his former partner of stealing his identity and racking up thousands of dollars in debt in his name. He believes credit cards and loans were taken out in his name, totalling $651,060, which Allen claims to have had no knowledge of. In a statement, Victoria Police said detectives had received a report of fraud, alleged to have been committed over a four-year period.
Queensland launches inquiry into Star’s suitability to hold a casino licence – 14 June 2022
The Queensland government will launch an inquiry into Star Entertainment’s suitability to hold a casino licence, after a NSW inquiry heard allegations that Star had potentially acted criminally. Star has also been called to give evidence at an inquiry into proposed gambling and money laundering laws in Queensland.
Melbourne company convicted after ABF investigation into illegal workers – 14 June 2022
A Melbourne company (M & G Vizzari Pty Ltd) who operates farms, has been convicted and fined following an Australian Border Force (ABF) investigation into community allegations of the use of illegal workers.
https://www.miragenews.com/melbourne-company-convicted-after-abf-800303/
ASIC escalates investigation into Sweetman Renewables – 14 June 2022
ASIC has escalated the Nature Conservation Council’s complaint about possibly misleading and deceptive conduct by Cessnock-based energy start-up Sweetman Renewables, to a full-blown inquiry. There seemed to be numerous media articles that stated Sweetman has signed a contract with a Japanese company to supply woodchips but in fact this was not the case.
https://www.nationaltribune.com.au/asic-escalates-investigation-into-sweetman-renewables/
Kmart, Bunnings and The Good Guys under investigation over use of facial recognition cameras – 15 June 2022
Consumer group CHOICE is looking into the retail giants’ use of the controversial technology, which is used on customers as they enter stores. CHOICE said some survey respondents described the technology as “creepy and invasive” and “unnecessary and dangerous”.
Creating A Federal Anti-Corruption Commission: What Does It Mean For Australian Business? – 15 June 2022
One of Labor’s election policies is to introduce a National Anti-Corruption Commission. During the election campaign, Labor promised that any Commission created would be “real”, and a “powerful, transparent and independent” Commission. Article discusses the implications for business and corporate Australia.
Israeli court finds Gaza aid worker guilty of financing terrorism – 16 June 2022
Mohammad El Halabi, the former head of the US-based charity World Vision’s Gaza office, was arrested in 2016 after being accused by Israel’s Shin Bet security service of transferring tens of millions of dollars to Hamas, the Palestinian militant group in control inside the Gaza Strip. He has been held in pre-trial detention since. He has now been convicted after a six-year-long case and will be sentenced.
Peter Foster faces court on the Gold Coast, slams fraud-related charges as ‘bogus’ – 17 June 2022
Peter Foster has faced Southport Magistrates Court over fraud-related charges. He is accused of defrauding a Hong Kong pilot of Bitcoin, valued at about $2 million, in 2019 and 2020.
https://www.abc.net.au/news/2022-06-16/peter-foster-faces-court-gold-coast-fraud-charges/101157792
Guy Sebastian had ‘barrow to push’ against former manager accused of embezzling $800,000, court told – 17 June 2022
Mr Day, Guy Sebastians former manager has pleaded not guilty in the NSW District Court to 50 charges over the alleged embezzlement of nearly $900,000 from Sebastian, who he managed for a decade. These were for royalties and performance feels. The Judge directed jurors to find Mr Day not guilty of three embezzlement counts, however, 47 remained.
Investigation & Fraud News – Week ending 10 June 2022
11 stories this week:
How Telstra gave my details to crypto scammers – 3 June 2022
Illegal access to a Telstra account enabled scammers to have access to a victims emails and therefore all sorts of personal banking information. They were able to .get banking and credit card details, and looked for opportunities to defraud this victim’s family, friends and colleagues. A good article showing how to spot a telco scam.
https://www.moneymag.com.au/how-telstra-gave-my-details-to-crypto-scammers
AI facial recognition, the new detention – 6 June 2022
Hear Professor Toby Walsh, Professor of artificial intelligence, UNSW School of Computer Science & Engineering discuss the use of Face recognition apps and the safeguards to protect our digital privacy and freedoms in Australia.
Flood recovery grant fraud battle slows cash flow for those who desperately need it – 6 June 2022
Businesses and residents in northern New South Wales say their details have been used for fraudulent grant applications. When Andrea Bonotto’s applied for the second part of an approved small business recovery grant, he was told someone else had already claimed it. 2,705 flood recovery applications worth a combined total of nearly $30 million are under review for possible fraud.
Aussies Scammed Over $200M So Far This Year – 6 June 2022
Between January 1 and May 1, Australians lost over $205 million to scams, a 166 per cent increase compared to the same period last year, according to new data from Scamwatch. Dodgy investment scams make up $158 million of the $205 million, and jumping by 314 per cent year-on-year. Of these, $113 million are crypto investments.
https://www.channelnews.com.au/aussies-scammed-over-200m-so-far-this-year/
Why are so many big tech whistleblowers women? Here is what the research shows – 6 June 2022
A computer scientist and a sociologist, explore the nature of big tech whistleblowing, the influence of gender, and the implications for technology’s role in society. The intriguing results are detailed in this article.
Former policeman who beefed up resume with ‘inexplicable’ lies avoids jail – 8 June 2022
Peter Ravenscroft , a former detective has managed to avoid jail despite lying on his resume to con Frankston local council into paying him $456,038 over 2 years and then tricking Victoria’s public watchdog into giving him a job paying $196,857.
Guilty plea to market manipulation following ASIC investigation into online ‘pump and dump’ posts – 8 June 2022
Using social media to coordinate ‘pump and dump’ activity in listed stocks is an offence under the Corporations Act 2001 (Cth). Article explains, how ASIC continues to take action against this form of ‘market manipulation’.
Albanese government promises national corruption watchdog will have power to investigate pork-barrelling – 8 June 2022
Mark Dreyfus has confirmed Labor’s national integrity commission will have the power to investigate pork-barrelling as well as “serious and systemic” past corruption allegations. Pork barreling is in reference to the utilisation of government funds for projects designed to please voters or legislators and win vote.
Google to act on scam ads for financial services – 9 June 2022
Tech giant Google, says it will allow advertising only from financial services providers that have been externally verified, in an effort to crack down on scam ads.
(Access to digital version of AFR required to read article.)
Forex Capital Trading liquidators hoping to claw back cash for investors from Gibraltar – 10 June 2022
Liquidators are hoping to claw back cash for “vulnerable” Australians who lost tens of millions with a trading company Forex Capital Trading (ForexCT). There is speculation that ‘Invesus’ is their parent company and therefore liable but because they are located in Gilbratar, this will be difficult. Gibraltar is known for its tax benefits for overseas companies.
https://www.abc.net.au/news/2022-06-10/forexct-invesus-fti-consulting-compensation-losses/101130282
Former CSIRO executive Mark Wallis jailed for two years after defrauding government of $300,000 – 10 June 2022
Mark Wallis, a former Senior Officer from the CSIRO, has been sentenced to two years in jail for fraud. He spent more than $300,000 of the agency’s money on items including a washing machine, a jet ski and two cars.
