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Investigation & Fraud News – Week ending 19 July 2024
Brisbane couple charged with spying for Russia in alleged attempt to access defence secrets – 12 July 2024
Two Russian-born Australians Kira and Igor Korolev are facing espionage charges after being arrested in suburban Brisbane. AFP commissioner Reece Kershaw said a 40-year-old woman on long-term leave from the Australian defence force and her 62-year-old husband were charged with one count each of preparing for an espionage offence, which could lead to up to 15 years in prison.
Police threat for Jackson – 15 July 2024
WHISTLEBLOWER Kathy Jackson is likely to be referred to Victoria Police for possible crim¬inal prosecution as the Health Services Union amasse misuse of union credit cards, cash, cheques and general accounts exceeding $660,000.
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Westpac wins $15m fruit stand fraud case – 16 July 2024
The owners of a western Sydney fruit stand and their staff fabricated financial records for more than five years to steal $15 million from Westpac. The money was used to expand a Northern Territory farming empire and pay down mortgages on houses in Sydney’s leafy inner-west.
ANZ suspends traders for alleged misconduct amid markets prob – 16 July 2024
Two ANZ traders have been suspended from the bank amid an internal investigation into misconduct within the company’s markets division. The traders were also among those who worked on a $14 billion bond sale for the federal government in April last year, a transaction now the subject of inquiries from the Australian Securities and Investments Commission, which is investigating whether the market was manipulated.
Scammers target Australian real estate sales through payment redirection scams – 17 July 2024
Lily lost about $26,000 to scammers when she sold her two-bedroom apartment in southern Sydney. She and her agent, HT Wills Real Estate, were the targets of a payment redirection scam. Cyber fraud investigator Dan Halpin says Australia is a highly profitable target for scammers.
https://www.abc.net.au/news/2024-07-17/scammers-target-australian-property-sales/104103298
Australia’s greyhound racing industry battles new claims of abuse – 18 July 2024
Greyhound Racing New South Wales (GRNSW) – the epicentre of the sport in the country – is back in the spotlight for alleged abuse, due to the work of one whistleblower. In an explosive report made public by lawmakers, the organisation’s former chief veterinarian has described the industry as a hotbed of “exploitation and suffering”, claiming that dogs are being raced at “barbaric” rates, euthanised without cause, or left to rot in metal cages when they can no longer compete.
MediSecure reveals 12.9 million Australians had personal data stolen in cyber attack earlier this year – 18 July 2024
About 12.9 million Australians had their data stolen in the MediSecure hack earlier this year, the eScripts provider has revealed, placing it among the largest cyber breaches in Australian history. Medisecure’s statement, released recently said they were “unable to identify the specific impacted individuals despite making all reasonable efforts to do so due to the complexity of the data set. Also doing so, would have come at a “substantial cost that MediSecure was not in a financial position to meet”. https://www.abc.net.au/news/2024-07-18/medisecure-data-cyber-hack-12-million/104112736
History lessons on union corruption – 18 July 2024
Business demands royal commission into ‘abhorrent’ CFMEU conduct
Australia’s trade unions and construction industry have long been plagued by alleged corruption, which has been the subject of several royal commissions as far back as the 1980s. Successive Labor and Liberal Governments have tried to stamp out corrupt elements of the union movement with seemingly little success. Amid fresh allegations against Australia’s most powerful construction union, the CFMEU, workplace experts say the Federal Government must avoid repeating past mistakes.
https://www.abc.net.au/listen/programs/am/history-lessons-on-union-corruption/104112154
NSW law enforcement watchdog finds senior officer engaged in serious misconduct after crashing police car – 18 July 2024
A senior NSW police officer was charged after crashing his unmarked police car while under the influence of alcohol in May 2023. The NSW law enforcement watchdog found the detective engaged in serious misconduct and was treated “leniently” by his superior. The officer, who cannot be named for legal reasons, has pleaded not guilty to the charges.
https://www.abc.net.au/news/2024-07-18/sydney-police-officer-misconduct-car-crash-watchdog/104113628
Former broker permanently banned following fraud convictions – 18 July 2024
ASIC has permanently banned Aleksandra Frizzell after it was found she dishonestly obtained funds from an employee, clients and people purchasing goods on Facebook Markplace. After pleading guilty to 17 charges – which reportedly resulted in home loan customers losing hundreds of thousands of dollars through mortgage ‘scams’ – Frizzell was sentenced to four years’ imprisonment (with a non-parole period of two years and three months).
Uber Eats has warned of a new scam. Here’s what to watch out for – 8 July 2024
Uber Eats customers have been warned of a new scam circulating on WhatsApp.
Scammers purporting to work for the food delivery platform had contacted customers via the messaging app. The scammers invite message recipients to join a “promotional team” and offer “rewards for liking or bookmarking merchant stores. Australians have filed about 143,000 scam reports and lost nearly $140 million to scams in the year to June, according to the Australian Competition and Consumer Commission’s Scamwatch service.
Geraldton financial advisor Thomas ‘Graham’ Greenaway jailed for $2.9m Aboriginal trust theft after retrial – 19 July 2024
Thomas “Graham” Greenaway was found guilty of 33 stealing charges relating to taking $2.9 million from the Yugunga-Nya people’s trust while he was trustee. Greenaway was imprisoned, won an appeal in 2022, and in a retrial in May a jury still found him guilty. Greenaway was sentenced to a total of five years and nine months’ imprisonment, which was back dated to July 2023. He will be eligible for parole after two years and nine months.
Investigation & Fraud News – Week ending 12 July 2024
Cutting-edge technology is being deployed to stop the illegal trafficking of Australian wildlife – 8 July 2024
Wildlife trafficking is the fourth-largest organised crime globally, worth over $450 billion a year, according to the Wildlife Crime Research Hub. It’s estimated thousands of Australian species are being traded internationally, with cockatoos and lizards particularly popular. Australian scientists have created tools to detect and trace wildlife being smuggled out of, and brought into, the country.
Boeing will plead guilty in investigation of two fatal crashes – 8 July 2024
Boeing has agreed to plead guilty to a criminal fraud conspiracy charge to resolve a US Department of Justice investigation linked to
two fatal 737 MAX crashes. The plea, which requires the approval of a federal judge, would brand the plane manufacturer a felon and make them pay a criminal fine of $360 million.
How criminals use property to launder money – 9 July 2024
Drug traffickers, people smugglers, terrorists and fraudsters who rip off government programs are laundering billions of dollars through Australia’s property market, banks and casinos – according to a national risk assessment released recently. The Government wants to impose new regulations on real estate agents, accountants and lawyers to crack down on the crime – but it’s facing resistance.
https://www.abc.net.au/listen/programs/am/how-criminals-use-property-to-launder-money/104073778
‘Jason’ was beaten repeatedly with a baton in a watch house. An investigation found the use of force was ‘reasonable’ – 10 July 2024
A teenager has been beaten with a baton by police in a watchhouse after swearing at officers. Commissioner Natalie Lewis has seen the footage and labeled the use of force as “abhorrent” and “distressing”. She has called for a more transparent and comprehensive investigation. https://www.abc.net.au/news/2024-07-10/indigenous-teenager-beaten-brisbane-police-watch-house-cctv/104070840
https://www.abc.net.au/news/2024-07-11/queensland-brisbane-watch-house-youth-baton/104080720
Australian Federal Police officer charged with perjury, concealing evidence and perverting the course of justice – 11 July 2024
ACT Policing Detective Leading Senior Constable Trent Madders has been charged with perjury, perverting the course of justice and concealing evidence. Prosecutors allege Trent Madders committed the offences between 2019 and 2020.
Two women arrested as part of Echo Taskforce investigation into false nominations – 11 July 2024
Detectives from Taskforce Echo have arrested two women as part of an investigation into the false nomination of drivers for penalty notices. Police will allege that the woman, who was previously working for a third-party contractor, used her position to access information and then receive payment for false nominations of penalty notices.
https://www.police.vic.gov.au/two-women-arrested-part-echo-taskforce-investigation-false-nominations
‘Those involved will be held accountable’: ANZ boss amid scandal – 11 July 2024
ANZ has engaged two major law firms as it investigates workplace misconduct and inappropriate trading in its markets division, even as the corporate regulator looks into whether the bank manipulated the price of government bonds.
Law Council calls for anti-money laundering carve-outs – 11 July 2024
Proposed anti-money laundering reforms will impose a significant compliance cost burden on law firms and could “make inroads” into client-lawyer privilege, the Law Council of Australia has warned. The peak body for lawyers has called for carve-outs for “low-risk” practice areas and exemptions to protect client privilege, but says it supports “risk-based and outcomes-based legislation”.
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Two Australian citizens charged with an espionage-related offence – 12 July 2024
Two Russian-born Australian citizens accused of obtaining Australian Defence Force material to share with Russian authorities will face Brisbane Magistrates Court after being charged with an espionage-related offence.
https://www.abc.net.au/news/2024-07-12/two-russian-born-australians-charged-with-espionage/104090430
Scammers are using our scam awareness against us — so watch out for unsolicited offers of help – 12 July 2024
Many of us are now at least a bit wary of scams and it appears scammers are using that to their advantage. They’re posing as assistance organisations for scam victims or pretending to be an agency that can reclaim money lost to scammers to trick people into handing over their money. The National Anti-Scam Centre (NASC) is a federal government organisation that works to protect people from scams.The centre says some criminals have been posing as NASC employees warning you about a scam — but it’s all a lie.
https://www.abc.net.au/news/2024-07-12/scammers-impersonating-scamwatch/104052282
Investigation & Fraud News – Week ending 5 July 2024
Four people facing 192 property laundering charges over shipping container & investment fraud scams – 29 June 2024
A group of alleged scammers are facing almost 200 charges, accused of running a sophisticated property laundering syndicate that swindled millions of dollars from victims across Australia.
Access to digitial version required to read article.
Are your neighbours allowed to use surveillance cameras? – 29 June 2024
When it comes to surveillance devices, people now have access to video, sound, night vision and infrared, and the laws are spotty across Australia. In each state and territory, there are different definitions of what a surveillance device is, where you can use one, and when using one amounts to a crime. But even if your neighbour’s camera is not technically illegal, you might still have a course of action with the common law of nuisance.
https://www.abc.net.au/news/2024-06-29/neighbours-using-surveillance-cameras-law-report/103987378
Scammers posing as ‘investment experts’ are spending weeks on the phone with their victims – 1 July 2024
Scams aren’t always “hit-and-run” incidents, with fraudsters now spending long periods communicating with their victims. A 2024 report shows that investment scams are the biggest concern, accounting for Australians losing over $1.3 billion in 2023. A cybersecurity professor says addressing digital literacy amongst the elderly and their support networks is essential.
Major bank raises alarm bell on cyber ‘warfare’: Claims ‘entire community is at risk’ – 1 July 2024
The NAB says the big four banks are under constant cyber attack, labelling it “asymmetrical warfare”. Overseas malicious actors in countries where it is difficult to be extradited are incentivised to target Australian banks. There are practical steps financial services customers can take to limit their risk of being hurt by a cyber attack or scam.
https://www.abc.net.au/news/2024-07-01/bank-cyber-warfare-risk/104042518
Officer Charged for Financial Fraud, Victoria Police Reports – 2 July 2024
A leading senior constable from north-west metro region has been charged following an internal investigation. The male officer has been charged with 18 counts of obtain financial advantage by deception.
https://www.miragenews.com/officer-charged-for-financial-fraud-victoria-1267290/
Facebook hay scam targets Tasmanian farmers battling dry conditions as person charged over alleged fraudulent activity – 3 July 2024
A hay scam has been doing the rounds in Tasmania, using social media to exploit people who are desperate for feed for their animals. Farmers are reporting paying thousands of dollars out of pocket for hay that never arrived. People wanting to feed their animals are being urged to be vigilant about who they buy from.
Pinkerton acquires Verificat Investigations – 3 July 2024
Pinkerton, a global provider of comprehensive risk management services and solutions, announced today the acquisition of Verifact Investigations, an Australian company specialising in investigations with operations across the country. This strategic acquisition will allow Pinkerton to expand services to new clients across Australia and bolster its investigative capabilities.
ASIC slammed for letting white collar crime run rampant, calls for major overhaul – 4 July 2024
According to a scathing new report tabled in parliament Australia’s corporate regulator should be overhauled and split in half and into 2 sections. One section should be focused on companies and the other on financial services enforcement. The report states that in its current state, it has failed to protect the public from white-collar criminals.
https://www.abc.net.au/news/2024-07-04/inquiry-finds-asic-failed-to-stop-financial-crime/104060710
Man charged over alleged $3 million money fraud scam – 4 July 2024
Strike Force Downstream has been looking into a criminal syndicate allegedly involved in moving about $3 million of fraudulent money by purchasing untraceable commodities such as gold bullion and jewellery. A Sydney man allegedly involved in moving millions of fraudulent dollars will face court.
Thousands of frozen sperm samples to be deleted after identification bungle – 4 July 2024
An IVF clinic accused of using the wrong sperm to create children has been asked to destroy thousands of frozen semen samples because it cannot guarantee it has not mixed-up others. The Queensland government introduced legislation in June to regulate the assisted reproduction industry in the state.
Need more than a warm inner glow: Call to pay whistleblowers – 5 July 2024
Jeff Morris, who received a Medal of the Order of Australia for his actions uncovering malpractice within the Commonwealth Bank, which ultimately led to the Hayne Royal Commission, said many more whistleblowers would come forward if they received compensation for their efforts. A Senate committee this week supported the introduction of financial rewards for corporate whistleblowers if their revelations delivered significant public benefit, while those whose careers were destroyed by their actions should receive compensation.
US federal investigation into Chinese swimmers’ doping cases subpoeanas World Aquatics’ executive director to testify – 5 July 2024
World Aquatics has confirmed its executive director has been subpoenaed by the US government to testify in an investigation into doping cases of 23 Chinese swimmers. The swimmers tested positive for trimetazidine in January 2021, but WADA accepted that traces of the substance were found in the kitchen at the team’s hotel. The Paris Olympics, which begin on July 26, will see 11 of the swimmers who tested positive in 2021 set to compete.
Investigation & Fraud News – Week ending 28 June 2024
Harriet lost $1.6 million to a scam. She wants the government to act and the bank forced to pay up – 23 June 2024
Harriet Spring fell for a sophisticated fixed-term deposit scam. Experts warn scams are now too complex for consumers to pick up on by themselves and they want banks to be liable for reimbursing customers. The government says it’s working with the banks to tighten security but won’t go down that route at the moment.
WA Police Commissioner says ‘boys club culture’ to blame for rising cop sexual misconduct claims – 27 June 2024
A report of sexual misconduct by a WA cop was made almost once a week last year, with Police Commissioner Col Blanch admitting to a “boys club culture” in the force. The State’s top cop described the 47 claims made last year as a “sad reflection” on the agency’s performance — while also revealing that 16 alleged perpetrators had been superior-ranked officers.
Digital access to the West Australian required to read article
Why High-Quality Data is Crucial to Fighting Financial Crime – 27 June 2024
The fight against financial crime is becoming increasingly complex. This paper explains the debate around AI responsibility and that organisations need to carefully consider the quality of the data that fuels the AI system. The six key steps for successful AI implementation are also listed.
https://www.kroll.com/en/insights/publications/ai-financial-crime-prevention
Super scammers defrauded Lee of his retirement savings. Industry experts are calling for better protections – 27 June 2024
Lee Braz’s entire super, $180,000, was stolen by scammers who used fraudulent documents to trick his fund. He launched a four-year legal battle to get a refund from his super fund, but only got back a third, which didn’t cover his legal feess. Industry experts want the federal government to urgently increase security obligations, such as multi-factor authentication and checks on who owns a bank account when rolling over a member’s super.
US Trafficking in Persons report says Cambodian officials complicit in human trafficking for online scams – 27 June 2024
A new report from the US State Department has highlighted alleged Cambodian government “corruption and official complicity” in human trafficking for the online scam industry”. The Trafficking in Persons report, which each year ranks countries for their efforts to eliminate human trafficking, gave Cambodia the lowest Tier 3 rating. It said the government did not meet the minimum standards for eliminating trafficking and was not making significant efforts to do so.
Concerns about rise in scams targeting residents in remote Western Australia ahead of tax time – 27 June 2024
Community leaders and financial counsellors warn of a spike in scams targeting residents in remote communities ahead of tax time.
They say more needs to be done in regional areas to protect vulnerable residents. Consumer Protection is urging all residents to break the stigma and report scams.
Former Moreland councillor Milad El-Halabi spared jail, fined $20,000 for tampering with voter ballots – 27 June 2024
A former Victorian councillor has been fined after admitting to one charge of vote tampering during a 2020 election. Milad El-Halabi was found to have “possessed and handled” the 23 fraudulent ballot papers, which elected him to the council’s north-west ward.
El-Halabi was fined $20,000 and was handed an 18-month community work order.
https://www.abc.net.au/news/2024-06-27/moreland-councillor-fined-for-rigging-ballot/104032504
Canberra lawyer Ben Aulich found guilty of professional misconduct after dancing shirtless in front of colleagues, taking his pants off during drinking game – 27 June 2024
Canberra lawyer Ben Aulich has been found guilty of professional misconduct after taking part in a drinking game where he took his pants off in front of his colleagues, risking “accidental exposure” of his penis.
He also behaved in a “bawdy” way, dancing shirtless while on a professional development weekend in 2021. Mr Aulich has been ordered to pay a fine of $20,000 and has been publicly reprimanded.
The trial of campsite murderer Greg Lynn – 27 June 2024
The trial of the missing campers in Victoria fascinated Australians and now Greg Lynn, the former Jetstar pilot, is a convicted murderer. He’s awaiting sentencing after being found guilty of killing Carol Clay. He was found not guilty of murdering Russell Hill. Today, creator of the Trace podcast Rachael Brown takes us through the captivating and unusual case.
Text scammers targeted in calls for mandatory SMS Sender ID Register – 28 June 2024
New legislation introduced in federal parliament will give the Australian Communications and Media Authority (ACMA) powers to establish and run an SMS Sender ID Register. The register will allow telcos to check whether messages are sent under a brand name that matches a legitimate sender.The government is now considering whether the registry should be mandatory for all entities that use a sender ID to contact Australian consumers.
Due date error involving hundreds of pregnant women under investigation after SA Health ‘miscalculated’ – 28 June 2024
SA Health may have “miscalculated” the due dates of more than 1,700 pregnant women, prompting concerns some could have been induced too early. SA Health Minister Chris Picton has ordered an independent investigation into the bungle. The investigation will likely take “a couple of months”, with the findings to be made public.
