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Investigation & Fraud News – Week ending 4 June 2022
10 stories this week:
Whistleblowers’ and journalists’ sources protected under ‘shield laws’ passed in Queensland – 26 May 2022
The identity of whistleblowers’ and journalists’ confidential sources will be protected under new ‘shield’ laws passed in Queensland. The laws will prevent journalists having to disclose information if doing so will reveal the identity of a confidential informant.
Elon Musk reacts to deepfake video of him promoting crypto scam – 27 May 2022
CEO Elon Musk has reacted to a viral video of him promoting a crypto scam, saying “Yikes not me”. The video was made through deepfake, which uses artificial intelligence that manipulates faces and audio files. BitVex, a bogus trading platform, was responsible for the scam.
https://micky.com.au/elon-musk-reacts-to-deepfake-video-of-him-promoting-crypto-scam/
Businessman under ASIC investigation distributed intimate photo of ex-wife – 28 May 2022
Renato ‘Rennie’ De Maria is currently under investigation by ASIC. He pleaded guilty to circulating an intimate image of his ex-wife and a breach of a family violence intervention order.
The ‘SlumDoge Millionaire’ made it big with crypto. His fortune is now vanishing but he’s all in – 30 May 2022
Glauber Contessoto has become an online celebrity after his Dogecoin windfall, becoming known as the ‘Dogecoin Millionaire’ to his fans. John Reed Stark a lawyer in Washington DC, told four corners that he believes that crypto is one big Ponzi scheme and it facilitates crime. He says it has no underlying intrinsic value and the main reason that people invest in cryptocurrency is because they believe that there’s a greater fool out there.
https://www.abc.net.au/news/2022-05-30/cryptocurrency-four-corners-investigation/101092486
Crown hit with $80m fine over ‘clandestine, deliberate’ bank card scam – 30 May 2022
Crown Resorts has been hit with a record $80 million fine over its illegal practice of accepting Chinese bank cards at its Melbourne casino to fund gambling and disguising the transactions as hotel expenses.
Access to digital version of SMH required to read article
Star Entertainment Group not suitable to run Sydney casino, inquiry told – 31 May 2022
Several top executives have resigned over the course of an inquiry by the NSW gaming regulator, which has heard allegations of money laundering, fraud and criminal infiltration at the casino. It was established that Star Entertainment Group is “not suitable” to hold a licence for its Sydney casino.
Call to protect Aussies from crypto scams – 31 May 2022
A submission has been made to the new federal government calling for urgent cryptocurrency reforms. In 2021, the Australian Competition and Consumer Commission received more than 10,000 reports of crypto scams from consumers with losses totalling about $129 million.
https://www.aap.com.au/news/call-to-protect-aussies-from-crypto-scams/
Adelaide man charged over alleged property investment scam worth more than $6 million – 2 June 2022
An Adelaide man has been arrested for allegedly deceiving five people to invest large sums of money in properties that never existed.
https://www.abc.net.au/news/2022-06-02/man-charged-over-alleged-property-investment-scam/101119816
US lawyer Michael Avenatti jailed for four years for defrauding Stormy Daniels – 3 June 2022
Michael Avenatti, a US lawyer who represented adult film star Stormy Daniels, known for an alleged affair with Donald Trump, has been sentenced to four years in prison for defrauding his former client of $413,000 in book proceeds. He is convicted of wire fraud and aggravated identity theft.
WA man’s assets seized over laundering – 3 June 2022
A West Australian man has handed over $4 million in assets, including cash in bank accounts, an apartment and other property, after an international money laundering and tax fraud investigation by the Australian Federal Police. Suspicious international banking activity and large fund transfers brought about the investigation.
https://www.macarthuradvertiser.com.au/story/7765704/wa-mans-assets-seized-over-laundering/?cs=12
Investigation & Fraud News – Week ending 27 May 2022
10 stories this week:
Accountant charged over alleged tax-related frauds – Financial Crimes Squad – 20 May 2022
An accountant and registered tax agent will face court for alleged tax-related frauds totalling almost $600,000. It is alleged that the man submitted fraudulent tax returns which had been altered without his clients’ knowledge in order to obtain a financial benefit. It is further alleged that he made a number of fraudulent applications to the COVID-19 JobKeeper Payment scheme on behalf of clients without their knowledge.
Astrophotographer faces charges for stealing $23K from photo association – 20 May 2022
Mark Culley, a photographer from Queensland has been charged with fraud and theft of $23,000 after using Photoshop to fake legal bank statements while being the President and Treasurer of the Professional Photographers’ Association of Queensland (PPAQ).
NSW teacher loses $500k to elaborate scam two months in the makin – 20 May 2022
A family from NSW found a website offering bonds affiliated with ANZ called Capel Court, with an Australian Business Number. Authenticity was even double-checked with ASIC. The problem is there really is a Capel Court bonds company that ANZ owns – but this wasn’t it. The scammers had stolen the company’s credentials and pretended to be them.
Fraud alert! AI identifies the four stages of a scam phone call – 21 May 2022
Australian researchers have used machine-learning techniques to identify the typical four stages of fraudulent money-taking phone calls. It is said to be one of the only studies to unpack the content of scam calls and the psychological tricks used by attackers in depth.
https://thenewdaily.com.au/finance/consumer/2022/05/21/the-four-stages-of-a-scam-call/
Advisers urged to treat unsolicited green bond investment opportunities with caution – 23 May 2022
The corporate regulator warned of scammers offering fake green bonds by representing themselves as well-known financial services firms. High in demand, ‘Green bonds’ are used to finance new and existing projects that offer climate change and environmental benefits – that are not directly available to the general public or retail investors.
The most common online scams in Australia – 23 May 2022
The ACCC reported that Australian citizens lost a record $851 million to scams during the pandemic, and these huge losses show no signs of abating. But we can work together to be more scam aware, and there are things you can do to prevent yourself from falling victim to a scam. The article provides breakdown of the most common online scams in Australia and how to can avoid them.
https://securitybrief.com.au/story/the-most-common-online-scams-in-australia
Steven Rootsey in Batemans Bay court for dealing with proceeds of puppy scam – 24 May 2022
Steven Rootsey has been convicted of dealing with nearly $50,000 swindled through an online puppy scam. He was asked to convert the stolen money into crypto currency by an unknown scammer for the benefit of keeping 10 percent for himself.
Employee fraud: recent developments in Australia – 25 May 2022
Article describes two recent cases of fraud in the workplace. One was a director from Deloitte who allegedly stole millions to pay for personal luxury items and another was an employee of Rentokil who falsified invoices and defrauded 3.2 million. Article also discusses how to mitigate the risk of employee fraud.
The inside story of the Aboriginal Community Benefit Fund collapse and the missing millions – 27 May 2022
Many had paid thousands of dollars to ACBF (Aboriginal Community Benefit Fund) over decades, after signing up to funeral insurance policies under the mistaken belief that it was a funeral savings fund owned and run by Aboriginal people. ASIC has confirmed it is investigating past and present directors for breaches of both the corporations act and the ASIC act.
Fraudster jailed after losing millions from his South Taranaki iwi – 27 May 2022
An Australia-based fraudster has brought shame as well as a loss of mana and trust to his iwi (Maori NZ Society) after the organisation lost more than $3 million in a series of sophisticated investments.
Investigation & Fraud News – Week ending 20 May 2022
12 stories this week:
Organised crime thrives because NSW cannot follow the money – 13 May 2022
Up until recent inquiries into The Star and Crown casinos, few people would have even thought that money laundering was a huge problem in Australia. Article explains how it is still an issue.
(Access to digital version of SMH required to read full article.)
Áustrac’s chief executive defends financial crime regulator after NSW Police Assistant Commissioner said watchdog was ‘not swinging hard enough’ – 13 May 2022
The CEO of the Australian Transaction Reports and Analysis Centre (AUSTRAC), Nicole Rose has rejected recent allegations that the agency has been too focused on banks. Recent actions by AUSTRAC against banks for anti-money laundering (AML) violations have resulted in record-breaking corporate penalties, such as the AU$700M fine against Commonwealth Bank in 2017 and the AU$1.3BN fine against Westpac in 2019.
https://www.amlintelligence.com/2022/05/austracs-chief-executive-defends-financial-crime-regulator/
Access to digital version of AML Intelligence site required to read full article
Australia’s treatment of whistleblowers will be its damnation – 13 May 2022
Article provides examples of how whistleblowers have been treated worldwide. The way Witness K and his barrister Bernard Collary have been the subject of Australian Govt. legal proceedings over the leaking of information to the East Timorese Government of secret recordings made by the Australian Secret Intelligence Service (ASIS), sends a message to the world that our great democracies intend on continuing to deceive and cover up.
https://thewest.com.au/politics/judge-rules-spying-lawfulness-not-relevant-c-6815732
Papas’ girlfriend denies knowledge of alleged scam – 13 May 2022
The girlfriend of alleged Forum fraudster Bill Papas has denied any knowledge of the alleged scam that saw Westpac and other banks bilked out of almost $500 million.
https://www.mpamag.com/au/news/general/papas-girlfriend-denies-knowledge-of-alleged-scam/405792
Bitcoin runaway Peter Foster gets bail despite six-month disappearance – 13 May 2022
Peter Foster, the self-described “man of mischief” and now alleged fraudster, has been released on bail from prison despite not turning up to court last year and going on the run for six months.
(Access to digital version of SMH required to read full article.)
Jeremiah Deakin sentenced to two and a half years in jail for deceiving former sex client into paying him $718,000 – 16 May 2022
Jeremiah Deakin pleaded guilty to posing as a female ASIO officer as part of an elaborate scam to obtain money from a former sex client. He has been sentenced to nearly two and a half years in jail by the ACT Supreme Court.
FSC calls for ban on scam ads on Facebook, Google – 16 May 2022
The Financial Services Council has called for a mandatory code of conduct to regulate advertising via technology giants Google and Facebook and better protect the public from financial scams.
NSW couple loses $500k to highly sophisticated scam – 16 May 2022
A New South Wales couple has lost half a million dollars to a highly sophisticated scam, thinking they were investing in a legitimate finance company. The scammers were allegedly using ANZ Capel Court ABN number and financial services’ licence.
Prominent Sydney corporate lawyer set to be grilled by Ponzi scheme investigators – 18 May 2022
A leading Australian corporate lawyer John Landerer is set to be grilled in court alongside casino giants Crown and The Star, over their alleged links to one of Australia’s biggest Ponzi schemes.
(Access to digital version of SMH required to read full article.)
Melissa Caddick’s husband Anthony Koletti hands couple’s mansion to receivers – 19 May 2022
The husband of Sydney fraudster Melissa Caddick has officially vacated the couple’s luxury mansion in eastern Sydney. Despite being forced to vacate his home, Mr Koletti is fighting for a cut of the sale, along with duped investors. The property with views of the Sydney Opera House is said to be worth between $15-$17 million.
https://www.abc.net.au/news/2022-05-19/melissa-caddick-husband-leaves-mansion-to-recievers/101080638
Court slaps manager with six-figure penalty for compensation fraud – 19 May 2022
A Victorian court had recently ruled that a Melbourne-based business manager must pay back $100,000 in overpayments after the court found that he defrauded the state’s workers’ compensation scheme.
Melbourne woman sentenced to time served for ‘brazen’ identity theft bank scam – 19 May 2022
Kristel Galvin-Samie from Melbourne, used wigs and sunglasses to hoodwink some of Australia’s biggest banks into giving her more than $260,000 belonging to other customers, has walked free from court. She was ordered to pay a $5,000 fine and complete a community corrections order.
Investigation & Fraud News – Week ending 13 May 2022
12 stories this week:
Tax Office To Investigate 40,000 Australians Over Fake Business Scam – 6 May 2022
The Australian Taxation Office is cracking down on an $850 million fraud being spruiked on social media that involves people inventing fake businesses to claim GST refunds. It involves offenders setting up sham businesses and ABN applications, then submitting fictional Business Activity Statements to get a false GST refund.
Screen-sharing scams on the rise, watchdog warns – 6 May 2022
The Financial Conduct Authority (FCA) is warning people to beware of people posing as investment advisers and offering to help them set up new schemes via online meeting platforms. They ask their victim to share the screen and enable remote access – which hands over control of their device and, potentially their bank account.
Employee monitoring software became the new normal during COVID-19. It seems workers are stuck with it – 6 May 2022
During the pandemic employee monitoring software, became the new normal, logging keystrokes and mouse movement, capturing screenshots, tracking location, and even activating webcams and microphones. Now the software is here to stay, even in the office. Furthermore, there’s no consistent set of laws operating across jurisdictions in Australia that regulate surveillance of the workplace.
Whistleblowers claim Facebook’s chaotic Australia news ban was a negotiating tactic – 6 May 2022
Former employees, backed by the Whistleblower Aid charity, claim Facebook purposefully “over-blocked” Australian pages during a critical ‘fire” period in order to gain leverage over the Australian government. Complaints filed with Australia’s Competition & Consumer Commission and the US Department of Justice, allege that the company engaged in “a criminal conspiracy to obtain a thing of value, namely favorable regulatory treatment”.
Hotel scams: What travellers need to look out for when booking online – 7 May 2022
There is a rise in scammers sending emails pretending to come from hoteliers and travel companies, directing holiday makers to fake COVID verification sites, that are there to steal their information and infect their computer. Scams often seek to get personal information such as birthdays, bank details, or other valuable confidential data. Unfortunately, many of these details are required when booking flights and hotels, making the travel industry a prime target for data breaches.
Public Interest Disclosures: Compensation for whistleblowers – 7 May 2022
Article outlines what a public interest disclosure is, who can make a public interest disclosures and what compensation there is for detrimental action taken against whistleblowers.
Corporate chicanery unveiled, Ice Hockey Australia supremo gets iced – 8 May 2022
Grove Bennet, a bankrupt and failed pyramid schemer’s management of Australian ice hockey has come to a fast finish because of an investigation in Michael West Media. Amongst other allegations it has been recorded that monetary data offered by Bennett was ‘misleading’, ‘false’ and ‘negligently misrepresented’.
https://michaelwest.com.au/corporate-chicanery-unveiled-ice-hockey-australia-supremo-gets-iced/
‘PC insanity’: How to handle misconduct investigations in the workplace – 10 May 2022
Article discusses some of the common mistakes made by employers when dealing with workplace misconduct. It states that allegations needs to demonstrate that the conclusions were properly reached, have regard to all of the evidence, and that there’s an explanation as to why decisions were made.
Australian ‘Casanova Conman’ sentenced in visa fraud case – 11 May 2022
An Australian national (Paul Cristallo known as Paul Carter) has been repeatedly accused of swindling women, including allegedly defrauding his mother, was sentenced to eight months after pleading guilty to visa fraud. Carter allegedly posed as a multimillionaire developer and would woo women into turning over to him control of their financial assets.
https://www.timesunion.com/news/article/Australian-Casanova-Conman-sentenced-in-visa-17165286.php
‘It pays to do your homework’: ASIC urges Australians to seek out licensed advisers – 12 May 2022
The corporate regulator has urged Australians who are seeking financial advice, to only connect with licenced professionals ensuring the adviser is both qualified and licensed, or authorised, to do the job.
Portland doctor Abraham Stephanson admits to defrauding $792k from patients – 11 May 2022
Abraham Stephanson who was a Portland doctor has pleaded guilty to deception charges after defrauding 19 people out of almost $800,000 to support his gambling addiction and pay of his own mortgage. Stephanson used the guise of his father’s diagnosis of terminal cancer to defraud his victims.
Organised crime rampant across Australia, secret briefings reveal – 13 May 2022
Organised crime is running rampant across Australia and agencies are struggling to fight it, according to secret briefings given to cabinet ministers and senior public servants, by the highest-ranking organised crime fighter in NSW. Police Assistant Commissioner Stuart Smith says the fight against organised crime was hampered by the lacklustre approach of the nation’s financial crime agency Australian Transaction Reports and Analysis Centre (AUSTRAC)
