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Investigation & Fraud News – Week ending 3 July 2021
10 stories this week:
Not-for-profit fraudster tells court she was catfished by American soldier – 24 June 2021
A mother-of-two who stole almost $150,000 from a community not-for-profit while employed as a financial controller and coordinator, says she was being catfished by a fake American soldier who romanced her online.
Pyrmont penthouse owned by former Nuix CFO raided in criminal probe – 24 June 2021
The Australian Federal Police raided the offices of Macquarie-backed tech group Nuix as well as an apartment, following the launch of a criminal investigation by ASIC. The subjects of the probe are the recently departed Nuix chief financial officer Stephen Doyle, 50, and his Swiss-based brother Ross.
(Access to SMH digital version required to read article.)
NT ICAC makes improper conduct findings over Darwin Turf Club grandstand grant – 25 June 2021
The Northern Territory’s anti-corruption watchdog has made findings of “improper conduct” against the Chief Minister’s former chief of staff, three members of the Darwin Turf Club and a company director over a $12 million government grant for a new grandstand.
What The Heck Is A Crypto Tumbler And Is It Even Legal? – 28 June 2021
A cryptocurrency tumbler – also known as a crypto mixer or crypto mixing service – is a paid service in which you can mix potentially traceable coins (for example, stolen coins) with other, clean coins in an effort to make it harder to trace them. There are no specific laws that prohibit cryptocurrency tumbling. However, using a cryptocurrency tumbler to conceal other illegal activity could still land you in hot water.
https://www.gizmodo.com.au/2021/06/cryptocurrency-tumblers-mixers-explained/
Trump family business may face charges – 28 June 2021
Legal attorneys are investigating “possibly extensive and protracted criminal conduct” at the Trump Organisation, including tax and insurance fraud, falsification of business records and corporate perks and gifts.
https://thewest.com.au/news/crime/trump-family-business-may-face-charges-c-3245432
Crypto scam losses rocket to record high – 28 June 2021
Investment scams of all types are on the rise. Money lost to scams involving bitcoin since the start of this year already equal the entire losses of 2020. The Australian Competition and Consumers Commission (ACCC) had $176 million in losses reported to it during 2020. In 2019, losses amounted to $143 million, up from $107 million in 2018.
https://www.smh.com.au/money/investing/crypto-scam-losses-rocket-to-record-high-20210625-p584du.html
(Access financial version of SMH required to read article.)
Since 2012, Australia has become “significantly” more corrupt – 29 June 2021
Transparency International Australia chief executive Serena Lillywhite shares a range of issues, which she believes are impairing Australia’s reputation as a democracy, which actively targets corruption. We are one of the 21 nations where perceived corruption has worsened “significantly”, over the past eight years.
Melissa Caddick convinced 72 investors to hand over $23m to ‘sham’ business, court told – 29 June 2021
In Federal court, it has been revealed that Melissa Caddick faked many documents in the “quite elaborate fraud”, she used to swindle trusting investors out of more than $23m. She operated 37 bank accounts, sent investors fictitious portfolio evaluations and kept “meticulous” records. Provisional liquidators have been appointed.
Former WA director charged with multiple offences – 1 July 2021
Joanne Jennifer Pellew from Western Australia, has been charged with breaching her directors’ duties, making a false or misleading statement to ASIC and managing a corporation while disqualified.
https://www.miragenews.com/former-wa-director-charged-with-multiple-588666/
Westpac detects huge potential fraud, bank to pay compo for deficient financial advice to share traders – 2 July 2021
Westpac has uncovered “sophisticated and externally perpetrated” potential fraud, estimated at about $200m and has kicked off court action in response. The proceedings are against ‘Forum Finance’ over a portfolio of equipment leases. ASIC announced Westpac would pay $87m in compensation to former clients of its financial advisers.
Investigation & Fraud News – Week ending 25 June 2021
13 stories this week:
5 best VPN in Australia – 18 June 2021
A good article explaining Virtual Private Networks and how your network can be completely accessible to tracking and surveillance by your Internet Provider, as it is provided by them, and they ultimately host it. Article lists popular VPNS that are secure and can’t access your data.
https://bestinau.com.au/best-vpn-australia/
Bank took 8 years to report $1.4m fraud – 18 June 2021
George Vrettakos is only now facing justice after defrauding more than $1.4 million from CBA. The significant delay – caused by the Commonwealth Bank failure to report his fraud to police – may mean George Vrettakos escapes jail time.
https://www.riverineherald.com.au/national/2021/06/18/4463407/bank-took-8-years-to-report-14m-fraud
Ex-con and bankrupt advised Melissa Caddick on tax affairs – 19 June 2021
Missing fraudster Melissa Caddick, who misappropriated millions of dollars from her clients, used the services of a former bankrupt accountant (Cyril “John” Pearson) who had been banned for 10 years from managing a corporation as well as jailed for embezzling money from a superannuation fund.
(Access to digital version of SMH required to read article.)
Billionaire tax dodging exposed (just not in Australia, home of the opaque ultra rich) – 18 June 2021
For years there has been a push for greater transparency on the tax affairs of the rich who can use sophisticated tactics to minimise what they pay. This ‘push’ could potentially inadvertently reveal details of the tax affairs of an individual or entity, which would breach confidentiality laws
https://www.crikey.com.au/2021/06/18/billionaire-tax-dodging-australia/
Qld govt consults on media shield laws – 18 June 2021
Currently Queensland and Tasmania are the only states without specific media shield laws. In August, new QLD laws will mean Journalists will be protected from revealing confidential whistleblower sources. Attorney-General Shannon Fentiman has released a discussion paper on these laws.
https://thewest.com.au/business/media/qld-govt-consults-on-media-shield-laws-c-3148013
Former Australian spy Witness K spared jail time over conspiracy charges relating to alleged spying on East Timor – 19 June 2021
The former Australian spy dubbed Witness K, has been given a three-month suspended sentence, for conspiring to reveal classified information about an alleged spying operation, during oil and gas treaty negotiations, between Australia and East Timor.
https://www.abc.net.au/news/2021-06-18/act-witness-k-sentencing-hearing/100226438
We have filed a case under your name’: Beware of tax scams – they’ll be everywhere this EOFY – 19 June 2021
According to an Australian Competition and Consumer Commission report, scams targeting Australians last year cost an estimated $851 million. Posing as the Australian Taxation Office in particular has been a key vehicle for scammers to target victims, with considerable success over the years.
Scammers sending out knock-off crypto wallets that could steal your coin – 19 June 2021
Scammers have begun sending out fake hardware wallets to Ledger customers in an attempt to steal the cryptocurrency from their Bitcoin wallets.
‘Deeply disturbing’ allegations threaten to bring Toshiba to its knees – 21 June 2021
For the last six years, scandals and economic missteps have plagued Toshiba. Recently an ‘Explosive’ report critical of Toshiba’s management claimed they “devised a plan to effectively prevent shareholders from exercising their … voting rights at the AGM” and they had persuaded Japan’s trade ministry to help keep the activists at bay by exerting “undue influence on some shareholders”.
Scammers target would-be tenants as housing crisis continues – 21 June 2021
Scammers are offering fake properties to convince people to hand over money or personal information. Australians lost more than $300,000 to rental and accommodation scams in the nine months to September last year – an increase of 76 per cent compared to the same time the previous year.
https://the-riotact.com/scammers-target-would-be-tenants-as-housing-crisis-continues/470622
Former Sony Music employees consider class action lawsuit – 23 June 2021
A dozen former employees of Sony Music Australia, have approached a law firm, to investigate launching a class action lawsuit against the global music empire, following an investigation into workplace culture at the company’s Australian offices.
AFP raids Nuix office amid criminal investigation by market regulator – 24 June 2021
The Australian Federal Police raided the offices of Macquarie-backed tech group Nuix as well as an apartment in Pyrmont on Thursday following the launch of a criminal investigation by the corporate regulator.
(Access to digital version of SMH required to read article.)
ClubsNSW demands pokies whistleblower stop crowdfunding for court case – 24 June 2021
Troy Stolz turned to GoFundMe to raise money for a court battle with former employer ClubsNSW, but lawyers have demanded he take down his page and return donations or face further court action.
Investigation & Fraud News – Week ending 18 June 2021
11 stories this week:
Scope of Victoria’s Crown royal commission expanded, budget near-doubled after ‘significant’ revelations – 11 June 2021
The scope, length and budget for Victoria’s Crown royal commission has been expanded from $10m to $19.75m after ‘significant’ revelations and matters have emerged. The Victorian investigation will determine if Crown is fit to hold a gaming licence for its Melbourne casino, while a separate royal commission is doing the same for the Perth venue.
Former Mayor’s banker son-in-law sacked, charged amid fraud claims – 11 June 2021
The banker son-in-law (Andre Andrada) of a former southeast Queensland mayor has been dismissed from his senior finance position and charged by police amid allegations of fraud.
(Access to the Courier Mail required to read article.)
Crypto crackdown underway as ATO locks in data-matching program – 11 June 2021
The ATO’s cryptocurrency data-matching program, will now scrutinise cryptocurrency transactions and account information from designated service providers for a further three financial years to 2022-23. According to the ATO, the data will uncover individuals who have failed to report a disposal of cryptocurrency and the appropriate capital gain or loss in their income tax return.
Australia’s great CCTV security risk – 11 June 2021
Sydney alone has more than 60,000 increasingly sophisticated CCTV cameras. Australia’s Internet of Things (IoT) market grows, individual CCTV cameras are becoming internet-enabled which also makes them hackable. In the mind of an attacker, it means there could be 60,000 entry points through which they could attempt access.
https://www.bit.com.au/guide/australias-great-cctv-security-risk-565858
Bid to use criminal cash to refund scam victims – 11 June 2021
A survey suggests, that a policy of refunding scam victims using money from criminals’ frozen bank accounts would be popular.
https://au.news.yahoo.com/bid-criminal-cash-refund-scam-100956531.html
Financial crime task force takes aim at cryptocurrency, pandemic fraud – 12 June 2021
The peak agency looking at financial crime is preparing to crack down on cryptocurrency transactions, to head off their role in tax avoidance while also combatting efforts by criminals from using digital currency such as bitcoin to bring cash back home.
(Access To the Australian digital version required to read article.)
Sony, Sackings, Fines, now Global Bullying & Harassment Investigation – 13 June 2021
Sony is back in the headlines as global bosses finally investigate the Australian operations for questionable conduct, that has been going on for decades at the scandal ridden Company. The latest investigation follows new claims of discrimination, bullying and harassment at its Sony Music operation.
https://www.channelnews.com.au/sony-sackings-fines-now-global-bullying-harassment-investigation/
Young woman loses $150k in crypto investment scam – 13 June 2021
A 25-year-old woman’s online dating venture took an expensive turn when she was scammed out of $150,000 in a fake cryptocurrency investment.
https://news.bitcoinguide.com/2021/06/13/young-woman-loses-150k-in-crypto-investment-scam
Nuix CEO and CFO step down after disastrous IPO – 15 June 2021
Nuix announced that its CFO Stephen Doyle was being “terminated by mutual agreement.” Half an hour later, CEO Rod Vawdrey had given notice of his decision to retire. Their departures follow a joint investigation by The Sydney Morning Herald, The Age and The Australian Financial Review which exposed serious culture and governance issues, missed sales forecasts and a previous attempted coup to oust Mr Vawdrey.
Convictions of fraud and insolvent trading set aside – 17 June 2021
A founder of collapsed whitegoods supplier Kleenmaid could face a fourth trial for charges, including fraud after winning an appeal based on whether juries should consider mental health concerns.
South Australia’s Tailem Bend Netball Club loses $150,000 in online invoice scam – 17 June 2021
The Tailem Bend Netball Club has lost $150,000 in an online scam. Scammers hacked the club’s email and sent invoices to the club with incorrect accounts
Investigation & Fraud News – Week ending 4 June 2021
13 stories this week:
ME Bank faces criminal prosecution by corporate regulator – 27 May 2021
Industry-super-linked ME Bank has been hit with a criminal lawsuit by the corporate regulator after 3700 home loan customers were incorrectly charged interest on mortgages.
‘Clearview AI’ Hit With Legal Complaints In 5 Countries, Accused of Face Recognition Abuse – 27 May 2021
Clearview AI, the American maker of a controversial facial recognition tool used mostly by police, is facing a downpour of legal complaints across Europe, alleging privacy violations based on internal documents showing the company’s algorithm at work.
Future of Australian steelworks in doubt as UK fraud office investigates Gupta – 27 May 2021
The future of the Whyalla Steelworks in South Australia hangs in the balance as the fallout continues from the recent collapse of Greensill Capital. The UK Serious Fraud Office announced that it was investigating Greensill Capital over “suspected fraud, fraudulent trading and money laundering… including its financing arrangements with Greensill Capital.” It was also that the Gupta-owned Wyelands Bank, which is currently being wound up, has been under investigation since 2018.
https://www.wsws.org/en/articles/2021/05/28/gupt-m28.html
‘Toxic breach of trust’: Investments watchdog sends fraud warning – 28 May 2021
A spate of investment scams highlight the dangers posed by deceptive financial advisers who abuse the trust of friends and family. As an example an investment manager was sentenced to at least four years in jail for stealing $2.9 million from 13 clients. Making 167 authorised transactions from clients’ accounts, he spent the money paying off debts and personal expenses including rent, holidays and school fees.
How Brad lost $5600 in Domain email scam – 31 May 2021
Domain revealed to its customers it had been the victim of a cyber attack that allowed scammers to access personal information, including email addresses and phone numbers of people who have made property enquires. So far this year, Australians have reported 18,689 phishing attacks, and have lost $887,390 to those scams. Brad was one of those vicitms losing $5600.
https://www.afr.com/technology/how-brad-lost-5600-in-domain-email-scam-20210528-p57vz7
(Access to digital version of AFR required to read article.)
Google promotes bond scam amid police probe – 31 May 2021
Google is continuing to make money by unwittingly promoting new websites that funnel investors into a complex fraud schemes. They tricks consumers with fake high-yield bond prospectuses in which savings are siphoned through the cryptocurrency ecosystem. There is an ongoing NSW police investigation into the matter.
(Access to digital version of AFR required to read article.)
Further six charged after cryptocurrency money laundering investigation – Cybercrime Squad – 31 May 2021
A further six people have been charged by Cybercrime Squad detectives as part of an ongoing investigation into a criminal syndicate allegedly involved in laundering money via cryptocurrency, across state and territory borders.
https://www.miragenews.com/further-six-charged-after-cryptocurrency-money-568659/
Former policeman who made up same-sex relationship found guilty of fraud – 31 May 2021
A former police officer (Okan Yesilhat) who was found to have fabricated a lengthy same-sex relationship to claim a $6 million inheritance, has been found guilty of misappropriating funds from the deceased’s accounts within hours of his death.
Freedom Foods loses fraud case in Federal Court – 31 May 2021
Australian-owned Freedom Food has been slammed in the Federal Court over fraud and breach of contract allegations put forward by Blue Diamond Growers (BDG). BDG claimed Freedom Foods used other suppliers for nut-based and non-organic almond based products for manufacture and sale in Australia and New Zealand, when their agreement should have precluded that. Freedom Foods claimed this was not true.
aaahttps://insidefmcg.com.au/2021/05/31/freedom-foods-loses-fraud-case-in-federal-court/
ATO signals crypto crackdown as tax time looms – 31 May 2021
The anonymous nature of trading crypto assets has led many taxpayers to believe their investments were untraceable. The ATO will employ data-matching methods to link transactions from cryptocurrency-designated service providers to individuals’ tax returns, to ensure investors are paying the right amount of tax.
Pfizer warns on fake online COVID vaccine shots – 1 June 2021
Fraud experts remain concerned about the potential for vaccine fraud to make its way to Australia, after Interpol issued a global warning this year about fake vaccines and treatments being sold online.
Warning about ‘unsuspecting friends’ sharing hoax app – 3 June 2021
The Commonwealth Bank has issued warning against a hoax app called “Hope Business” which has cost them thousands of dollars. It claims that anyone can earn significant returns after transferring funds to use as an investment, while completing in app tasks.
https://au.finance.yahoo.com/news/warning-hoax-app-commbank-000339457.html
Automotive fraud and scams skyrocket in 2021, according to the ACCC – 3 June 2021
Automotive fraud and scams have skyrocketed in 2021, according to the ACCC. 97 per cent of reported cases claimed the seller was enlisted in the military or to work for the Department of Defence, under the pretence they were selling their vehicle prior to deployment.
https://www.drive.com.au/news/automotive-fraud-and-scams-skyrocket-in-2021-according-to-the-accc/
