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Investigation & Fraud News – Week ending 19 November 2021
11 stories this week:
Griffith University: Most Deserving Whistleblowers Get No Protection New Research Shows – 12 November 2021
New research from Griffith University’s Whistling While They Work” project has revealed more than half of all public interest whistleblowers who experience serious repercussions for reporting wrongdoing receive no remedies for detriment they suffer, despite Australia’s long history of whistleblower protection laws and public sector policies.
ACCC probes flower industry over claims customers are being scammed into buying from ‘local’ florists – 13 November 2021
A whistleblower at one of Australia’s largest online flower retailers said she was trained to deliberately mislead customers. The conglomerate ”Roses Only” appears to give the false impression the businesses were local shops. The ACCC is investigating ‘deceptive’ practices in the flower delivery industry.
https://www.abc.net.au/news/2021-11-13/accc-probes-flower-industry-over-scamming-claims/100612948
Forum executive to face court for first time – 13 November 2021
A hearing in March will hear from Forum Group director Vincenzo Tesoriero (Bill Papas’s business partner) about his role in allegedly scamming Westpac and other banks of about $400 million. Tesoriero is asking the court to end a freezing order on his assets, which include a vast portfolio of property and a luxury yacht.
https://www.mpamag.com/au/news/general/forum-executive-to-face-court-for-first-time/316432
Retirees lose $2.8 million to alleged fake bond scam – 13 November 2021
A US man living in Sydney’s east faced court on Saturday after being allegedly scamming retirees of more than $2.8 million via fake bonds, mainly through self-managed super funds and then channelling the money to his personal bitcoin account.
Government waits until after election to change whistleblower laws, support for protection high – 15 November 2021
New research shows that a majority of Australians want more legal protections for public servants to act as whistleblowers. Assistant attorney general Amanda Stoker told the National Whistleblowing Symposium last week, the federal government was preparing to amend the Public Interest Disclosure Act to better protect those in the public sector.
AFP raids Sydney EverBlu offices as part of ASIC investigation – 16 November 2021
The Sydney offices of controversial stockbroker EverBlu Capital were one of several sites in Sydney and the Gold Coast raided by federal police as part of a sweeping corporate investigation. EverBlu has come under scrutiny in the past, for its disclosure of paying influencers shares and stock options to promote listed companies in which it had advisory roles. Now its alleged they are entangled with cannabis stock ”Creso Pharma”.
https://www.businessinsider.com.au/afp-raids-everblu-as-part-of-asic-investigation
Melbourne man who allegedly stole $1.4m from victims in international diamond scam charged – 17 November 2021
A 42-year-old man from Melbourne’s south-east claimed to own a diamond mine in Sierra Leone, West Africa, when he allegedly approached his victims and offered them the opportunity to invest in the mine. Once he received initial payment, the man allegedly asked for equipment and various gifts for his employees, before on-selling the items in an offshore shop.
Whistleblower ordered to end media crusade – 17 November 2021
Troy Stolz – a former compliance auditor with ClubsNSW – last year spoke out about a widespread and “alarming” failure to comply with money laundering laws in pubs and clubs across the state. Now he is being barred from continuing a media campaign against his former employer, while he is sued for leaking documents.
https://thewest.com.au/business/whistleblower-ordered-to-end-media-crusade-c-4589299
ASIC sues MLC for multiple insurance failures – 19 November 2021
ASIC claimed that MLC’s failure to implement appropriate systems and controls resulted in unpaid insurance benefits, premiums being charged without notice and underpaid refunds. It was alleged MLC’s conduct led to over $17.5 million in financial harm to over 260,000 customers
https://superreview.moneymanagement.com.au/news/insurance/asic-sues-mlc-multiple-insurance-failures
Former Labor MP Craig Thomson granted bail after being charged over alleged visa migration fraud – 19 November 2021
Former federal Labor MP Craig Thomson will “vigorously fight” charges over his involvement in an alleged multi-million-dollar visa migration fraud. Police allege Mr Thomson was the “prime facilitator” or common thread of the scheme between migration agencies and visa applicants.
Millennials forking out millions to online shopping scams – 19 November 2021
The rise in online shopping scams has been fuelled by the rapid growth of online shopping, with brick-and-mortar retailers closed throughout the pandemic due to lockdowns. A report published by Reviews.org found New South Wales residents had been hit the hardest by online shopping scams, recording a loss of $1.55 million to date through 2021. Victoria closely trailed behind at $1.51 million, while Queenslanders reported a loss of more than $888,000 to date.
https://www.savings.com.au/news/millennials-forking-out-millions-to-online-scams
Investigation & Fraud News – Week ending 12 November 2021
11 stories this week:
Adelaide father-of-three Joshua Luke Matheson handed five-year jail term over $500k tax fraud – 5 November 2021
Joshua Luke Matheson received more than $29,000 after filing a fraudulent tax return. He made up false employers and income to defraud the Australian Tax Office out of half a million dollars and has been jailed for five years.
Invasive surveillance: Are regulators ready to deal with Facebook’s ‘metaverse’ – 6 November 2021
As Australian lawmakers struggle to regulate social media’s misinformation, conspiracies and extremist content, they are already facing the push to make an even more invasive technology, part of everyday life. A new generation of the internet will enable the real physical world and virtual worlds to seamlessly converge. This means mass data harvesting and highly targeted advertising.
(Access to digital verision of SMH required to read article)
Labor proposes anti-scam centre, calls for crackdown on social media companies profiting from fraud – 7 November 2021
In response to record fraud, the federal opposition is proposing a national anti-scam centre to combat what it calls a “scamdemic” of online and phone fraudsters. Scammers stole $851 million from Australians last year, a record amount according to the Australian Competition and Consumer Commission.
NSW Governor Margaret Beazley ignores reporters’ questions over bullying claims – 8 November 2021
NSW Governor Margaret Beazley has ignored reporters’ questions about investigations of bullying allegations against her by an anonymous whistleblower. The person claimed Ms Beazley’s “unjustified criticism or complaints” and “constantly changing goal posts” have been leaving employees “in tears at their desks”.
Fake Gold Coast lawyer banned from running law firm, as police seek missing money – 8 November 2021
A fake Gold Coast lawyer, who allegedly lost more than $430,000 in clients’ money, has been banned from managing a legal practice and is being investigated by police.
https://www.abc.net.au/news/2021-11-08/nerise-dawn-moore-fake-lawyer-banned/100601320
Queensland Police warn of ‘sophisticated’ email scam after grazier loses thousands of dollars – 9 November 2021
A Queensland grazier was paying what appeared to be a legitimate business invoice, when he fell victim to a ‘very sophisticated’ email scam. Business email compromise (BEC) was the number 1 scam in Australia in 2019, with losses amassing $132 million.
Crypto criminals are blackmailing Instagram users into swindling friends – 10 November 2021
The latest crypto scam forces Instagram users to make videos directing their followers to phony get-rich-quick schemes. Scammers use a combination of social engineering, cryptocurrency, and old-fashioned blackmail.
Bank fraudster points finger at boyfriend – 10 November 2021
A bank teller behind bars over a $2.25 million fraud says her then-boyfriend, was the one who raised the potential of accessing the victim’s millions.
https://7news.com.au/news/crime/bank-fraudster-points-finger-at-boyfriend-c-4505444
Government reveals plan to reform Australia’s whistleblowing laws – 11 November 2021
Assistant Attorney General Amanda Stoker, has outlined a government plan to bring public sector whistleblowing laws in line with the reformed corporate whistleblowing scheme. These changes are due to new research, showing the current scheme is failing to protect those who speak out about wrongdoing.
https://7news.com.au/politics/federal-whistleblower-law-changes-outlined-c-4516926
Remote employee surveillance is dangerous territory – 11 November 2021
Electric monitoring of home workers by companies is rising rapidly and research shows how misuse of this technology can allow employers to invade staff privacy easily, due to lack of government regulation.
https://itbrief.com.au/story/remote-employee-surveillance-is-dangerous-territory
Refugees from Sydney’s Tamil community targetted by social media investment scam – 12 November 2021
The ‘Hope’ Business scheme promised rapid returns on investments and commissions for signing up family and friends, before it vanished without a trace. At least 100 members of Sydney’s Tamil community have been caught up the scam.
https://www.abc.net.au/news/2021-11-12/hope-business-scam/100613210
Investigation & Fraud News – Week ending 5 November 2021
11 stories this week:
Why Sydney woman stole $3.5m from Commonwealth Bank – 30 October 2021
A former Commonwealth Bank employee who stole $3.5m to pay for a lavish lifestyle and appease an abusive ex has been jailed. Hsin-Yu Tsai, used her position as a customer service officer to move millions of dollars out of the accounts of unsuspecting clients.
Telcos take action as text, phone call scams hit record high – 31 October 2021
Australians have reported a record $77.8 million in losses due to text and phone call scams. This is more than double the amount reported over the same period last year. Telcos will now be forced to identify and block text message scams under new rules.
Scammers behind $SQUID coin disappear with $4.3 million in ‘invested’ cash – 2 November 2021
Cryptocurrency scammers have made off with approximately A$4.38 million, after setting up a fake currency playing off the popularity of Netflix’s hit show, Squid Game. Billed as a “play-to-earn” cryptocurrency, $SQUID allowed people to buy tokens to play in online games and potentially grow their wealth. With zero option to cash out, the scam should have been clear as day.
ASIC sues major Gold Coast timeshare company – 2 November 2021
A timeshare company is being sued over allegations customers paid up to $25,000 to join its investment scheme, only to find a lack of availability when they went to book a getaway.
(Digital access required to read article.)
Perth Racing whistleblower pushed to resign after calling out inappropriate conduct of her boss – 2 November 2021
The Perth Racing employee who blew the whistle on former managing director John Yovich’s alleged serious workplace misconduct, was allegedly pushed to resign less than three months later. The employee was allegedly given an ultimatum; either accept a damages payout and leave on good terms, or proceed with the investigation which could lead to termination. She resigned.
https://www.brisbanetimes.com.au/national/western-australia/perth-racing-whistleblower-pushed-to-resign-after-calling-out-inappropriate-conduct-of-her-boss-20211029-p594bk.html
CVS director of organized retail crime explains how professional thieves are stealing $2,000 from stores in just 2 minutes – 2 November 2021
The lack of regulation surrounding online marketplaces such as Amazon and eBay, means that an estimated $US500 ($AU673) billion in illicit stolen and counterfeit goods are sold on third-party marketplaces, like Amazon each year.
How to prevent a phishing attack online – 3 November 2021
New malware threats such as crypto-ransomware and phishing scams are rising exponentially. These complex scams are designed to trick users into revealing banking details, account passwords, or other personal information, from which the attackers steal money or in the most severe cases, the user’s identity. Article outlines eight tips to cyber safety.
https://www.pcworld.idg.com.au/article/692760/how-prevent-phishing-attack-online/
Facebook to shut down controversial facial recognition – 3 November 2021
Meta CEO Mark Zuckerberg has announced plans to ditch face recognition technology used on the Facebook app. It follows a class action lawsuit in the US, in which a federal judge approved a settlement of $650 million against Facebook, for allegedly using face-tagging and other biometric data without users’ permission.
Geraldton financial adviser Thomas ‘Graham’ Greenaway jailed for $2.9m Aboriginal trust theft – 4 November 2021
Geraldton financial adviser Thomas ‘Graham’ Greenaway will spend at least four years in jail for stealing $2.9 million from an Aboriginal charitable trust, while he was the trustee. A District Court judge has also ordered the 70-year-old to repay $2.1 million to the Yugunga-Nya People’s Trust.
Qoin rejects potential class action allegations of ‘pyramid selling’, deception, citing ‘witch hunt’ – 4 November 2021
Salerno Law states it will review whether BPS financial Ltd and Gold Coast digital currency “Qoin” have been “engaging in misleading and deceptive conduct … making false or misleading representations … conducting pyramid selling of financial products” and “fraud”, and whether it has failed to “comply with financial services obligations” and “consumer guarantees”. The BPS director has dismissed the allegations, describing them as part of a “witch hunt”.
https://www.abc.net.au/news/2021-11-04/qoin-potential-class-action-rejects-allegations/100590132
Former Papunya shop manager Bruce Ross pleads guilty to theft – 4 November 2021
A former shop manager in a remote Aboriginal community has escaped jail time after admitting to stealing thousands of dollars from the business. He created a fake invoice which he sent to a Commonwealth bureaucrat to try to cover his tracks and has pleaded guilty.
https://www.abc.net.au/news/2021-11-04/former-remote-shop-manager-pleads-guilty-to-theft/100592300
Investigation & Fraud News – Week ending 29 October 2021
14 stories this week:
Former Renewal SA chief executive John Hanlon calls for permanent stay on corruption charges – 22 October 2021
A former senior public servant accused of making fraudulent travel claims, will argue the prosecution case against him amounts to an abuse of process.
New whistleblower accuses Facebook of wrongdoing: report – 22 October 2021
An unnamed whistleblower has filed a complaint with US financial regulator Securities and Exchange Commission, alleging Facebook managers routinely undermined efforts to combat misinformation and other problematic content, for fear of angering then US president Donald Trump or for turning off the users who are key to profits. The information related to Russia’s interference in the 2016 US presidential election.
Dodgy association may sink Australian Swimming League – 24 October 2021
The Australian Swimming League – an ambitious plan backed by Swimming Australia to stage a series of made-for-TV race meets involving Olympic athletes – is uncertain to go ahead after the project’s founder (David Brandi) and principal investor was convicted of tax fraud and banned from serving as a company director.
Australia plans to force parental consent for minors on social media – 25 October 2021
Australia plans to make social media companies obtain parental consent for users under the age of 16 and threaten fines of up to A$10 million for internet platforms which fail to comply, under draft legislation published recently. The new proposed rules would put Australia among the most stringent countries in terms of age controls for social media, and build on efforts to rein in the power of Big Tech following mandatory licencing payments for media outlets and plans to toughen laws against online misinformation and defamation.
https://www.yahoo.com/now/australia-plans-force-parental-consent-033314204.html
Melbourne’s – Top Private Investigators The Herald Sun has researched some famous criminal cases over the years and interviewed the high-profile investigators involved – 26 October 2021
Great article explaining what a Private Investigator really does in this common age and what motivates criminals. Our very own AIPI President Andrew Patterson and AIPI members Forde Nicolaides, Timothy Carrodus, Dean Newlan and Wayne Gladman were interviewed.
(Access to digital version of herald sun required to read this article.)
Cape York man on trial for fraud after allegedly striking multi-million-dollar mining deal on native title land – 26 October 2021
Larry Joe Woosup, a Cape York man who allegedly struck a multi-million-dollar deal with a mining company behind the backs of other traditional owners and siphoned off cash for his own use has appeared in court. Mr Woosup is accused of striking a deal with a mining company, without the consent of other traditional owners.
Parliament should intervene to protect whistleblower’s communications to MP, committee says – 26 October 2021
The powerful Privileges Committee has found some of the documents to be given to ClubsNSW in the case against whistleblower Troy Stolz should be protected by parliamentary privilege.
‘Anyone with a laptop’: How cyber criminals are getting smarter at stealing money – 26 October 2021
Hacking has become big business. The latest data from the Australian Cyber Security Centre shows self-reported losses from cybercrime totalled more than $33 billion in the last financial year. Article details how cyber criminals change you mobile number and then research your personal information, to then gain access to bank accounts.
Crown lucky to escape the Victorian royal commission with its licence intact – 27 October 2021
According to the findings of a royal commission, Crown dodged paying hundreds of millions of dollars in state taxes, consorted with criminal gangs and facilitated money laundering on an epic scale. It also failed to prevent staff from being jailed in China and shredded responsible gambling laws. Yet despite class actions and attention from financial crime agency AUSTRAC Crown, gets to keep its prized Victorian casino licence.
Former lawyer Tracey-Anne Smith who ripped off elderly clients walks from court after defrauding WWII refugee – 28 October 2021
Anne Smith, a Gold Coast lawyer has ripped off the estates of eight elderly clients and was found guilty of professional misconduct for deceiving and defrauding them.
Maria Carmela Pau, accused of issuing fake COVID exemptions, appears in court – 28 October 2021
A Queensland woman who allegedly posed as a doctor and issued hundreds of fake COVID-19 exemption certificates has appeared in court. Police allege she told officers she issued about 600 false documents to give people exemptions from having COVID tests, being vaccinated or needing to wear a mask.
Disgraced Labor MP Barry Urban remanded in custody after lying to WA Parliament – 29 October 2021
Disgraced former WA politician Barry Urban has been remanded in custody while he awaits being sentenced for forging university qualifications and repeatedly lying about his supposed police and military service.
https://www.abc.net.au/news/2021-10-29/disgraced-former-wa-mp-barry-urban-behind-bars/100579380
Australia’s CBA pleads guilty for fraud charges – 29 October 2021
ASIC has announced that CBA has pleaded guilty to 30 criminal charges for mis-selling consumer credit insurance between 2011 and 2015. Scrutiny of Australian lenders and financial institutions has ramped up significantly since a Royal Commission inquiry in 2018 found widespread shortcomings in the sector, forcing companies and regulators to take swift action.
ASIC issues warning on Whistleblowing Policies – 29 October 2021
ASIC reviewed a sample of whistleblowing policies and found that the majority were not compliant with the requirements under the Corporations Act. In particular, ASIC is concerned that a number of the policies contained unclear, incomplete or inaccurate information about how potential whistleblowers can make a qualifying disclosure and about whistleblower protections that are available under the Corporations Act.
https://www.lexology.com/library/detail.aspx?g=c4e9a86a-dc43-4f4c-ab12-dc55400ce8c3
