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Investigation & Fraud News – Week ending 28 May 2021
13 stories this week:
Financial Crime Compliance – What About the “Little Guys?” – 19 May 2021
Big-name firms and international financial institutions may survive investigations for alleged regulatory failings and breaches, but most medium and small firms will not, so they need independent expert advice to ensure compliance solutions are tailored to their needs.
Westpac accused of sacking senior executive over whistleblower complaints to CEO – 22 May 2021
Westpac dismissed a senior risk executive (Amanda Ware) just months after chief executive Peter King advised her to seek whistleblower protections. She has now filed a lawsuit claiming unfair dismissal, because she raised a series of concerns about compliance gaps and risk failings with the bank’s top executives.
Whistleblowers shouldn’t face prison for doing the right thing – 23 May 2021
The Human Rights Law Centre has welcomed the findings of a Senate inquiry into press freedom to better protect whistleblowers and public interest journalism in Australia. The final report was published and made 17 recommendations. These included proposed reforms to secrecy and espionage laws that potentially criminalise public interest journalism and a call for long-awaited improvements to federal whistleblower protections.
The country town shopfront behind Chinese labour king’s empire – 23 May 2021
The old shopfront in the tiny south-west Victorian country town of Koroit was an unlikely location for the corporate headquarters of a China-linked labour hire company with earnings of more than $40 million. Mr Shi’s empire came crashing down in 2018 when the Australian Federal Police executed search warrants on several of his properties. The warrants listed Mr Shi as being suspected of 11 criminal offences, including money laundering, tax fraud, secret commissions and breaches of migration laws.
Queensland horse trainer Ben Currie not guilty of fraud over 14 races – 23 May 2021
High-profile Queensland horse trainer Ben Currie has been found not guilty of giving his horses performance-enhancing substances over a two-year period.
Scam victim Victoria Herrera to rebuild her home with a bushfire recovery grant – 23 May 2021
Victoria Herrera’s home burnt to the ground in a bushfire in December 2019. Shortly afterwards, she was conned out of her life savings and insurance money by a man who claimed to be a successful builder from Sydney.
Cryptocurrency policy must catch up – 25 May 2021
Today, 100 million people have a bitcoin wallet. Australia needs a proper regulatory framework to protect consumers and prevent harmful use.
https://www.afr.com/companies/financial-services/cryptocurrency-policy-must-catch-up-20210524-p57uqw
Man arrested over alleged role in $91k puppy scam – 25 May 2021
A man has been arrested over his role in allegedly scamming more than $91,000 from people looking to buy “designer puppies” before laundering the money through cryptocurrency, as part of a multinational crime syndicate.
Former Sydney financial adviser charged over $3.3 million fraud – 26 May 2021
A former Sydney financial adviser is accused of defrauding a dozen people of almost $3.3 million. It is alleged that Gavin Fineff took funds from 12 people meant for shares holdings and diverted them to his own bank account.
Woman allegedly defrauded Macquarie Bank of $1.1 million in loans, insurance – 26 May 2021
Charleen Henegan, is facing serious charges after allegedly receiving almost $1.1 million in fraudulent loans, insurance and brokerage and commission fees from Macquarie Bank. She is accused of committing the offences through a Brisbane car yard business and allegedly forging a tax agent letter, according to court documents.
ASIC investigation leads to 6 years’ jail sentence for former financial adviser – 26 May 2021
Former financial adviser Ross Andrew Hopkins has been sentenced to a maximum six years in prison. Over a period of nearly three years, he misappropriated $2.9 million of his clients’ funds without their knowledge, and used their funds for his own benefit, such as holidays, rent, paying his own credit card debts and repaying personal loans.
‘Charismatic crook’ Foster to surrender – 26 May 2021
Peter Foster was facing 15 fraud charges after allegedly posing as a man called Bill Dawson and extricating 120 Bitcoin from a Hong Kong man in 2019 and 2020. He is planning to hand himself into Queensland Police and plead not guilty to all charges.
https://thewest.com.au/news/crime/charismatic-crook-foster-to-surrender-c-2937407
ME Bank slapped with criminal charges over redraw clawback – 27 May 2021
ME Bank has been taken to court and criminally charged with false and misleading behaviour and breaches of the Credit Act relating to its disastrous redraw clawback last year after an investigation by ASIC.
Investigation & Fraud News – Week ending 21 May 2021
12 stories this week:
Landmark laws to keep children safe, stop racial hate and protect democracy online published – 12 May 2021
New internet laws will be published in the draft Online Safety Bill to protect children online and tackle some of the worst abuses on social media, including racist hate crimes.
https://www.miragenews.com/landmark-laws-to-keep-children-safe-stop-racial-558464/
Scammers Target NSW Citizens In Re-Emerging Remote Access Scam – 12 May 2021
A re-emerging Remote Access Scam in NSW has scammers pretending to be from financial institutions or well-known companies. They access recipient’s devices remotely, using excuses that the device isn’t functioning properly, has a virus or is sending out error messages that ‘need be fixed’. Scammers will then try to talk you into buying software or services to ‘fix’ the device, and often will ask for personal details including bank and credit card details.
WA Health denies whistleblower hotel quarantine guard’s claims as Premier defends ‘not perfect’ system – 12 May 2021
The anonymous security whistleblower, was employed by a subcontractor at the Intercontinental hotel for three months until November 2020, saying the stress of working in such an unhygenic environment that wouldn’t provide masks or sanister drove him to quit.
Sydney lawyer accused of alleged cryptocurrency scam – 13 May 2021
A Sydney-based solicitor has fronted court after being accused of playing a role in a $2.3 million cryptocurrency scam. He is alleged to have been involved in a scam in which four men, deposited $2.3 million into various bank accounts. Police have alleged that the accounts were all linked to a Sydney-based solicitor, who was paid by an international criminal syndicate.
Scams circulating Eastern District – 13 May 2021
People need to exercise caution when buying goods online, particularly items listed for sale on social media. Offenders have been known to create fake profiles in order to sell items and then block buyers shortly after. https://www.miragenews.com/scams-circulating-eastern-district-559189/
https://au.news.yahoo.com/pet-shopping-scams-surge-during-231651650.html
The ‘David and Goliath’ battle behind Telstra’s huge ACCC fine over its treatment of Indigenous customers – 14 May 2021
Telstra has been slapped with a $50 million fine after it was found that Indigenous customers were being pushed into phone plans they couldn’t afford, only to be hit with huge bills and in many cases, chased by debt collectors.
ASIC issues warnings on investment scams – 14 May 2021
ASIC has identified several ongoing investment scams including duping consumers into establishing self-managed super funds, and advertisements for crypto-asset and contracts for difference, disguised as fake news articles.
https://www.financialstandard.com.au/news/asic-issues-warnings-on-investment-scams-179748068
Make-up artist Olivia Rodgers gave multiple reasons as to why she stole $65,000 from former employer, court hears – 15 May 2021
Olivia Rose Rodgers has admitted to stealing $65,000 from Bupa Health Insurance. The court heard the 31-year-old made multiple false insurance claims on behalf of family and friends, but she was the sole beneficiary of the money.
Macquarie magic: How a consultant turned $3000 into $80 million in Nuix float – 19 May 2021
Gaps in the records of tech company Nuix have raised questions about former finance professor Anthony Castagna’s $3000 investment, which he turned into an $80 million windfall. The company may have failed to record Dr Castagna’s $3000 options package that he cashed out for $80 million, when Nuix listed on the sharemarket last December. It also raises questions about whether the company backdated the options.
Police charge woman over $250,000 fraud of not-for-profit treatment centre – 20 May 2021
A woman will face court next month charged by Inner West detectives after she allegedly defrauded a not-for-profit treatment centre of almost $250,000. It is alleged that fraudulent expense forms had been submitted for a patient who had passed away and were allegedly paid into an employee’s bank account.
https://www.miragenews.com/police-charge-woman-over-250000-fraud-of-not-563147/
Warrant issued for conman Peter Foster – 20 May 2021
Serial conman Peter Foster is the subject of an arrest warrant in Queensland after prosecutors in Sydney dropped more than a dozen charges over an alleged multi-million-dollar Bitcoin scam.
https://www.canberratimes.com.au/story/7262402/warrant-issued-for-conman-peter-foster/
Smishing: The new scam fleecing Aussie victims of thousands – 20 May 2021
Australians are being inundated by a new form of scam whereby victims are sent text messages asking for them to share personal details which are then on-sold. The scam involves cyber criminals impersonating legitimate organisations such as banks or delivery companies and request mobile phone users to click a link.
Investigation & Fraud News – Week ending 14 May 2021
13 stories this week:
Young Aussies are turning to crypto investment to create wealth, but there’s a dark side – 6 May 2021
It seems that more and more people own or plan to buy cryptocurrency by the end of the year. Barney Tan, an Associate Professor of Business Information Systems at the University of Sydney Business School, said the interest in digital currencies is being driven by online hype, rising prices and FOMO. Barney also warns just like with any investment, if it sounds too good to be true, it probably is. Last year there were more than 3,000 cryptocurrency scam reports made to the Australian Competition & Consumer Commission worth almost $30 million in losses. https://www.abc.net.au/triplej/programs/hack/young-aussies-crypto-scams/13332674
https://www.afr.com/rear-window/let-s-call-doggy-coin-what-it-is-20210505-p57p4p
(access to AFR required to read article)
AMA sues ex-CEO in $2.4M lawsuit – 7 May 2021
AMA, known as the biggest ‘smash repair’ business in Australia, is suing its former CEO Andy Hopkins over alleged anomalies in his spending. The defendant has been accused of claiming bonuses and incurring expenses inappropriately. The company said the Federal Court aims to secure $2.4m from Hopkins covering unauthorised expenses and a loan.
https://www.hcamag.com/au/specialisation/employee-engagement/ama-sues-ex-ceo-in-2.4m-lawsuit/254376
Top law firm’s invoices exposed to ANZ which employees were cooperating with ASIC investigation – 7 May 2021
During a 2014 investigation into alleged market manipulation, a group of employees at ANZ believed they were secretly giving information to the corporate regulator. What they did not know is that their lawyers, were revealing how much time and contact they had with ASIC, to their employer in invoices. This exposed the methodology behind the anonymisation technique and unmasked those employees who were meeting frequently with ASIC investigators.
https://www.abc.net.au/news/2021-05-07/lawyers-exposed-anz-asic-infomants/100121298
Australians targeted by fake myGov email phishing scam – 7 May 2021
Australians are being warned of a new email scam in which hackers pose as myGov employees and then proceed to steal the bank details of unsuspecting victims.
Melbourne man allegedly posing as Uber driver scams $75,000 from unsuspecting passengers – 7 May 2021
Muhammad Umer has been accused of posing as an Uber driver who allegedly preyed on intoxicated revellers and lured them into his car to swipe their credit cards. He has been accused of taking more than $75,000 from 14 alleged victims.
Fraudulent debt collector jailed for almost 5 years – 7 May 2021
The court heard that Robert Cree ran number of debt recovery companies. Investigators found that the business was cold calling organisations, offering debt recovery services following payment of a subscription fee. In most cases, debts were never recovered and no service was provided. In the company’s liquidation, he also impersonated the company’s director to deceive the Official Receiver.
https://www.miragenews.com/fraudulent-debt-collector-jailed-for-almost-5-556383/
Does your business really need to keep that data? – 8 May 2021
Industry Professor Phillip Magness at Deakin’s Centre for Cyber Security Research and Innovation, argues businesses should carefully consider how much personal information they keep, given the risks of a data breach. Furthermore, the Australian Privacy Principles require an entity that is bound by the Privacy Act, to take reasonable steps to destroy or de-identify personal information, when it is no longer needed for any purpose, for which it was collected.
https://www.miragenews.com/does-your-business-really-need-to-keep-that-data-556635/
Rio’s Mozambique ‘whistleblower’ complained of ‘obfuscation’ – 10 May 2021
The former Rio Tinto executive (Preston Chiaro) portrayed as blowing the whistle on the miner’s Mozambique coal scandal, felt he encountered ” obfuscation’ ‘ when he raised evidence in 2012 that the mines valuation was worth much less than its official carrying value.
Access to Digital version of AFR required
Smash-repairer expense claims entangle more AMA executives – 10 May 2021
AMA has alleged that several executives were tied up in illicit payments at Australia’s biggest smash repairer, including dummying up invoices to cover their tracks. The claims are contested by executives tied up in the matter, who maintain they were entitled to payments and the monies were all approved.
Access to Digital version of AFR required
Qld gourmet foodie admits tax scam – 10 May 2021
A gourmet gluten-free foodie was part of a sophisticated multimillion-dollar tax scam to pay for a friend’s luxury mansion has escaped jail. The two acted to defraud the commonwealth of over 3.6 million dollars, by setting up a fake cancer research and development tax offset claim.
https://www.youngwitness.com.au/story/7245785/qld-gourmet-foodie-admits-tax-scam/
Sinister COVID trend sees online love scams target younger victims – 11 May 2021
Australians lost more than $37 million to romance scams in the past year. A younger demographic is now the target of online thieves, as the popularity of dating apps grows with cryptocurrency and investment fraud being the new weapons of choice.
https://www.abc.net.au/news/2021-05-11/covid-love-scams-target-younger-victims/100064644
Internal emails reveal WHO knew of sex abuse claims in Congo – 13 May 2021
WHO has been facing widespread public allegations of systemic abuse of women by unnamed staffers in Congo during the Ebola outbreak. Emails, recordings of internal meetings, legal documents and interviews with dozens of aid workers and WHO staffers show WHO declined to comment on any specific sex abuse allegations or how they were managed and said it had taken steps to address the problem.
https://www.smh.com.au/world/africa/internal-emails-reveal-who-knew-of-sex-abuse-claims-in-congo-
Crown and Star to phase out cash at all casinos to counter money-laundering fears – 14 May 2021
Australia’s biggest casino operators, Crown Resorts and The Star, have agreed to phase out cash from all of their casinos in an effort to prevent criminals from laundering money through their gaming tables.
Investigation & Fraud News – Week ending 7 May 2021
15 stories this week:
Anatomy of a hedge fund hack – 28 April 2021
The complexity of scams, and the time and money fraudsters are prepared to invest, highlights a growing threat to smaller financial services firms. Hedge funds and family offices do not spend anywhere near enough on cyber security, which is why they are targets.
https://www.afr.com/companies/financial-services/anatomy-of-a-hedge-fund-hack-20210428-p57n0s
(Access to AFR required to read this article.)
Criminality of Australia’s banking sector going unchecked – 30 April 2021
Dr Evan Jones, a retired political economist shares his opinion on how the financial sector is a natural haven for criminality and that most systematic white-collar crime of Australian banks against borrowers is still ignored by those in authority and by the media.
Whistleblowers are being scared into silence, hampering efforts to expose corruption in Australia, research finds – 30 April 2021
Major flaws with Australia’s whistleblowing protections are scaring whistleblowers into silence and hindering journalists’ efforts to expose corruption, according to jailed journalist Peter Greste and constitutional law scholar Rebecca Ananian-Welsh.
Shifting the focus on CCTV and women’s safety – 30 April 2021
Closed-circuit television cameras on trains and city streets are meant to reassure women that there not in danger – but women don’t always see them that way. Women and girls prefer the presence of security officers and guards to cameras. Until this changes, women will feel vulnerable when moving through public spaces, particularly at night.
Deepfake nudes change the face of cyber threats, revenge porn and scams – 30 April 2021
The rise of deepfake nude technology poses radical new threats to anyone who posts images and videos of themselves on the world’s most popular social media sites. As these tools became more accessible and improved, scammers would inevitably seize on the opportunity to extort bitcoin or money from a victim, by creating a deepfake nude of a victim and threatening to share it online.
Commission welcomes sentencing of children’s cancer charity founder for fraud and theft – 1 May 2021
Mr Nesbitt, the founder and director of a former children’s cancer charity, Little Heroes Cancer Trust, was sentenced to 20 months’ imprisonment after he was found guilty in March 2021. He stole £87,000 from the charity and transferred £181,000 into a bank account in his name between July 2014 and May 2015.
https://www.miragenews.com/commission-welcomes-sentencing-of-childrens-552715/
‘Heartbreaking’: Elderly couple loses $50k in 24 hour scams – 1 May 2021
The Australian Federal Police issued a search warrant in Wollongong, as part of a cybercrime investigation into an alleged fraudulent technical support business. Police allege the business – with a professional website, an Australian 1800 business number and used Microsoft logos – linked Australian victims to offshore scammers, who would request remote access to their computers.
https://www.qt.com.au/news/heartbreaking-elderly-couple-loses-50k-in-24-hour-/4249634/
In Indonesia, lab workers arrested, accused of reusing swabs in coronavirus tests – 2 May 2021
Five laboratory workers were arrested in the Indonesian city of Medan and accused of reusing nasal swabs in administering as many as 20,000 tests. They face up to six years in prison for violating consumer protection, medical waste and contagious disease laws.
Whistleblower Richard Boyle’s prosecution continues after he exposed the ATO’s unethical debt collection practices against small businesses – 3 May 2021
Boyle is facing life in prison for his role in exposing unethical debt collection practices inside the ATO. Boyle is relying on the public interest disclosure regime in his response to the alleged offences. 42 of the 66 charges have been dropped to date.
Criminals have already stolen over $100 million from blockchain projects in 2021 – 3 May 2021
Cryptocurrency wallets and exchange accounts have brought criminals around $108.3 million in the first quarter of 2021 – that’s 46% more than in Q1 2020. There were also nine blockchain wallet breaches reported, as well as one scam event and two blackmail cases, which saw victims lose roughly $19.3 million. Due to their nature, blockchain projects remain profitable targets to cybercriminals because fraudulent transactions cannot be reversed, as they may be in the traditional financial system.
New research reveals customer behaviour around fraud risks – 3 May 2021
The majority of efforts organisations make to educate customers about potential fraud risks are not working, according to new research from Callsign, the Fraud Protection and Authorisation company. The research suggests consumers want to make their own decisions around the risks they take, choosing to opt in or out of receiving fraud alerts, even ignoring them when they are delivered.
https://securitybrief.com.au/story/new-research-reveals-customer-behaviour-around-fraud-risks
Coaches must be held accountable: gymnastics whistleblowers speak out – 4 May 2021
A former gymnast hopes individual coaches are held accountable for their role in the abuse that has been rife in Australian gymnastics for decades, detailed in a troubling Australian Human Rights Commission report that was released on 3 May.
Australian Military Bank hit with a direct order – 4 May 2021
The financial intelligence regulator issued the Australian Military Bank, with an enforcement action designed to ensure the bank is compliant with anti-money laundering laws and stop it from being compromised by criminals.
https://www.afr.com/companies/financial-services/austrac-slugs-australian-military-bank-with-a-direct-order-20210503-p57ojx
(Access to AFR required to read this article.)
Corporate whistleblower policies falling short: ASIC – 4 May 2021
The corporate watchdog is urging companies to update their whistleblower protection policies, after finding many firms had not kept up with laws aimed at supporting staff who raise the alarm.
Scammers prey on Victorians amid scramble for rental properties – 5 May 2021
Victorians desperate to secure rental properties are being preyed upon by scammers posing as landlords on Facebook. Consumer Affairs Victoria recorded 31 reports of rental scams last financial year and said some scammers were showing renters properties they had no right to rent out. In other instances, people are asked to hand over rent and bonds for properties they have never inspected.
