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Investigation & Fraud News – Week ending 25 May 2024
Fourth A-League player expected to be charged over alleged corruption upon return to NSW – 18 May 2024
A fourth A-League player who featured prominently in police interviews with the three men charged over the alleged betting corruption scandal that rocked the Australian sporting world is expected to be charged when he returns to New South Wales. Macarthur FC players Ulises Davila, Kearyn Baccus, and Clayton Lewis were picked up by organised crime detectives, suspected of deliberately conceding yellow cards to manipulate offshore betting markets.
Australians getting better at recognising scams but false billing on the rise – 21 May 2024
Australia’s banks, have made a commitment to implement a suite of measures to combat cyber criminals in a Scam-Safe Accord. One of the measures is to cross-check account names, which has had positive results in other countries. In a statement, the Australian Banking Association said the Scam-Safe Accord “sets an even higher standard of protection by banks to shield consumers from scammers”.
Are we finally winning the war against scams? – 21 May 2024
According to the National Anti-Scam Centre quarterly update for January to March 2023, all three of the government’s key scam reporting agencies reported quarter-to-quarter declines in the financial losses suffered by the people reporting the crimes to them – including the Australian Financial Crimes Exchange. It is believed this is partly due to the success of the cyber ‘A-team’ – a ‘fusion cell’ that joined the ACCC, ASIC and 43 other organisations.
https://ia.acs.org.au/article/2024/are-we-finally-winning-the-war-against-scams-.html
‘I lost my 95-year-old mother’s $1.6m life savings to scammers’ – 21 May 2024
A great-grandmother has lost $1.6 million – her life savings – in a sophisticated scam by criminals who impersonated bank staff. Elaine Spring’s stolen savings were the proceeds from the sale of the family home and were going to be used by her children to help pay for her health care and old-age accommodation.
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James Raptis resigns after ABC investigation reveals his links to plagiarism websites – 22 May 2024
James Raptis, the media lawyer identified by an ABC investigation as being linked to an AI plagiarism operation, has left his position at Australian Community Media (ACM). The network of websites that were publishing plagiarised articles from Australian and international news sites were- called F1 Initiative, League Initiative, Surf Initiative and AliaVera.
Corruption probe finds serious risk of misconduct in $2.8m WA ports tender – 22 May 2024
A report by Western Australia’s corruption watchdog has identified ‘serious misconduct risks’ in relation to a tender awarded by the Mid West Ports Authority (MWPA) to a company owned by a former Mayor.
Dozens of Tasmanian public servants under internal investigation due to adverse findings of child sexual abuse inquiry – 23 May 2024
Tasmania’s Commission of Inquiry (COI) identified 22 public servants who had allegedly committed child sexual abuse, and 42 who failed to take proper steps to prevent abuse or act on allegations. More than six months after the COI report was handed down, 28 are still employed and under internal investigation, while 20 left before an investigation could be finished. The government says it’s asked for investigations to be finished more quickly, and is set to implement 44 of 48 phase one recommendations by the July deadline.
Police “failing” on cybercrime with Ken Gamble – 24 May 2024
A parliamentary inquiry has heard claims Australian law enforcement lack the resources and expertise to properly investigate and prosecute cases of online crime. An international cybercrime investigation firm claims failures in policing have made Australians a favoured target for overseas criminal syndicates. Cybercrime experts say the rapid rise of online scams warrants an urgent improvement of cyber-crime policing.
https://www.abc.net.au/listen/programs/am/police-failing-on-cybercrime/103887478
Australian Privacy Law to be “Much More like GDPR” – 23 May 2024
The Attorney-General’s proposed changes to Australian privacy law and the Government’s recent response will re-shape the approach of business privacy in Australia. The paper “highlights” the agreed changes likely to have the most immediate impact on business. It also details what to expect from the “agreed in principle” proposed changes.
https://www.clydeco.com/en/insights/2024/05/australian-privacy-law-to-be-much-more-like-gdpr
Court freezes claimant’s funds over fraud allegation – 24 May 2024
A statutory benefits claimant has had her bank funds frozen amid allegations of a “brazen fraud” involving forged invoices for medical care she never received. Haneen Asfour is facing civil action by NRMA Insurance, which sought the freeze order ahead of its bid to recover $380,594 allegedly “obtained by the defendant, on the basis of misleading or deceptive statements or conduct in making her claim”.
https://www.insurancenews.com.au/daily/court-freezes-claimant-s-funds-over-fraud-allegation
Fraudster faked NDIS-approved properties to obtain $38m – 25 May 2024
Disgraced former company director Demetrios “James” Charisiou has been sentenced to 12 years’ jail for fleecing overseas investors of more than $38m. The court heard that he was a greedy former company director with an “inflated ego” ripped off South Korean investors of more than $38m using fake NDIS-approved properties.
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Investigation & Fraud News – Week ending 17 May 2024
ACT Integrity Commission investigating suspected corrupt conduct of Walter Sofronoff, who chaired an inquiry into Bruce Lehrmann’s prosecution – 13 May 2024
The ACT Integrity Commission has announced an investigation into the conduct of Walter Sofronoff KC during an inquiry into the prosecution of Bruce Lehrmann.
The commissioner says he suspects “on reasonable grounds” that Mr Sofronoff’s conduct may constitute corruption. The allegations stem from Mr Sofronoff’s release of his final report to two journalists before its release to the public.
AAT Confirms Permanent Ban for Ex-NSW Adviser
The Administrative Appeals Tribunal (AAT) has upheld ASIC’s decision to permanently ban Sean John Sweeney from providing any financial services, performing any function involved in the carrying on of a financial services business, and controlling an entity that carries on a financial services business. Financial advisers must act with honesty and integrity in their dealings with clients.
https://www.miragenews.com/aat-confirms-permanent-ban-for-ex-nsw-adviser-1234026/
ATO’s Serious Financial Crime Taskforce receives training to combat crypto crime – 13 May 2024
More than 50 members of Australia’s Serious Financial Crime Taskforce (SFCT) have received crypto asset investigation training from specialists across five leading jurisdictions of global tax enforcement.
The ATO brought together its partners under the Joint Chiefs of Global Tax Enforcement (J5) to give its SFCT an opportunity to explore real-world case studies and emerging technologies to support the identification, investigation and prosecution of cyber targets related to tax crime and money laundering.
Mortgage lender Firstmac suffers cyberattack, customer data including driver’s license numbers and banking details leaked – 14 May 2024
Mortgage lender Firstmac has been subject to a cyber attack where customer data, including banking details and driver’s license numbers, were exposed. The company said it had conducted a “comprehensive review of impacted files” and was notifying affected customers directly.
https://www.abc.net.au/news/2024-05-14/firstmac-cyber-attack-customer-data-breach/103809170
Australia: Whistleblower jailed for nearly six years for media leaks – 16 May 2024
The Australian Capital Territory (ACT) Supreme Court has delivered a 68-month sentence to former military lawyer and whistleblower David McBride for his leaking of classified military information to the ABC. The International Federation of Journalists (IFJ) joins its Australian affiliate, the Media, Entertainment and Arts Alliance (MEAA), in condemning McBride’s sentencing and its alarming impact on public interest journalism, highlighting the urgent need for whistleblower protection reform.
How South-East Asia’s pig butchering scammers are using artificial intelligence technology – 16 May 2024
Real-time deepfake face-swapping systems are reportedly being employed by South-East Asian crime syndicates in so-called “pig butchering” cyberscam operations. Experts say the technology and other new artificial intelligence (AI) tools – such as generative AI chatbots – are increasing the effectiveness of the scams and broadening their reach to new victims.
AI ‘explosion’ will see up to $34.7BN spent on AML this year – 16 May 2024
A Financial crime and compliance expert has told how the “explosion” of AI will see $34.7bn potentially spent on Anti Money Laundering this year that this will increase by 5.7% by 2028, to $43.7BN. AI has caused an “even bigger impact” on financial crime compliance, than in society at large, Ms Simmons told the European Anti-Financial Crime Summit.
https://www.amlintelligence.com/2024/05/symphonyai-financial-crime-expert-states-ai-explosion/
NSW police allege Ulises Dávila, Kearyn Baccus and Clayton Lewis were involved in a scheme ‘for yellow cards to occur during certain games’ in late 2023 – 17 May 2024
Three A-League players have been charged and a fourth could be extradited following a NSW Police investigation into alleged “yellow card manipulation” in matches this season. A six-month investigation found a senior player was allegedly instructed by a man believed to be in South America to “organise for yellow cards to occur during certain games in exchange for profit”.It is alleged the players manipulated the number of yellow cards during games on November 24 and December 9.
Australian College of Nursing executives sacked after investigation finds alleged ‘financial irregularities’ – 17 May 2024
The CEO and an executive of the Australian College of Nursing have been sacked following an investigation into alleged “financial irregularities” at the organisation. The ACN’s board says it will work to reinforce a “culture of accountability and transparency” at the college.
Investigation & Fraud News – Week ending 10 May 2024
‘Gaming the process’: Probe finds $1 million of pandemic grants were claimed fraudulently – 3 May 2024
A South Australian corruption investigation has found more than $1 million of cash grants meant to help businesses stay afloat during the COVID-19 pandemic were claimed fraudulently.
The Independent Commission Against Corruption (ICAC) unearthed flaws in the grant system, where officials were left unable to access the Australian Tax Office files to verify claims made by businesses.
Two integrity investigations into Tasmanian MPs have been going for almost two years, but little information has been made public – 3 May 2024
Tasmania’s Integrity Commission recently urged politicians not to speculate about investigations into members of parliament. One investigation, codenamed Loyetea, has been running for two years, while another, Olegas, started being assessed 22 months ago. The Centre for Public Integrity says the commission is “encouraging” the political speculation by failing to resolve the investigations quick enough.
Sydney Man Expected To Be Charged With Blackmail After Major Data Breach Investigation – 4 May 2024
A man in Sydney has been arrested by the police under suspicion of blackmail in connection to a significant data breach investigation. The breach has resulted in the exposure of personal details belonging to potentially up to one million residents of New South Wales and the Australian Capital Territory (ACT), which were shared online.
Warren Buffett says AI may be better for scammers than society – 5 May 2024
Warren Buffett cautioned the tens of thousands of shareholders who packed an arena for his annual meeting that artificial intelligence scams could become “the growth industry of all time”. Someone made a fake video of Mr Buffett, apparently convincing enough that the so-called Oracle of Omaha himself said he could imagine it tricking him into sending money overseas.
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Australians have had a gutful of corruption, but will the latest promises of whistleblower reform be enough? – 6 May 2024
The cases of ex-military lawyer David McBride and ATO whistleblower Richard Boyle have prompted a growing public interest in whistleblower protections. Both men have spent years waiting for judgment. Submissions reveal that our whistleblowing protection laws are not fit for purpose and need updating. Some call for a separate independent agency to help fill the gaps and encourage more whistleblowing.
Embattled plane maker Boeing faces new investigation – 8 May 2024
It’s been a tough week for US plane maker Boeing, which suffered a rocket glitch forced the delay of its first-ever astronaut launch, just two hours before lift-off. It comes as the US Federal Aviation Administration opened a new investigation after the company reported that workers had falsified inspection records on certain 787 Dreamliner planes.
The time to assess your company’s exposure to bribery and corruption risk is now – 8 May 2024
In the wake of the new ‘failure to prevent’ offence, the Commonwealth Attorney-General is required to publish guidance on the steps that can be taken to prevent an associate from bribing foreign public officials, to assist companies to implement appropriate measures to stop bribery. In this paper, they discuss the new draft adequate procedures guidance1 and explain what you need to do to prepare for the foreign bribery reforms taking effect in early September 2024.
Greyhound industry reforms to be overseen by former racing integrity commissioner Sal Perna – 8 May 2024
Note: Sal has been an AIPI member for several years. Sal Perna, who was Victoria’s racing integrity commissioner, will oversee administrative and animal welfare reforms in the SA greyhound industry. Mr Perna’s appointment comes after the ABC revealed animal abuse Mr Perna will regularly report to SA Racing Minister Katrine Hildyard.
NDIS provider accused of excessive use of force against people with disabilities – 9 May 2024
An ABC investigation has uncovered a series of allegations by former workers blowing the whistle on mistreatment, neglect and excessive use of force against people with disabilities being cared for by NDIS provider Evolution Support Services. https://www.abc.net.au/news/2024-05-09/ndis-provider-evoloution-support-services-under-scrutiny/103814678
https://www.abc.net.au/news/2024-05-09/ndis-provider-accused-of-excessive-use-of-force/103828586
Fiji’s former prime minister Frank Bainimarama sentenced to one year in jail after interfering in police investigation – 9 May 2024
Fiji’s former coup leader and former prime minister Frank Bainimarama has received a one year jail sentence after being convicted of perverting the course of justice. The conviction related to his role in influencing a police investigation into funding of the Pacific region’s biggest university in 2019. Bainimarama faces a series of charges after he lost office in Fiji’s December 2022 election.
https://www.abc.net.au/news/2024-05-09/frank-bainimarama-sentenced-to-jail-fiji-court/103791144
Investigation & Fraud News – Week ending 3 May 2024
Charges laid after alleged Gold Coast cold calling scam leads to $1.5m loss – 28 April 2024
Detectives allege several Gold Coast companies defrauded more than $1.5 million from about 30 people.Multiple companies were allegedly involved, including Crypto Advisers Australia, Strategic Capital, Active Marketing Solutions and Alternative Capital. The charges come following an almost two-year investigation by Queensland Police into cold call investment fraud or “boiler room” scheme.
https://www.abc.net.au/news/2024-04-29/four-charged-over-alleged-gold-coast-cold-call-scam/103779786
Scam losses decline, but more work to do as Australians lose $2.7 billion – 28 April 2024
The National Anti-Scam Centre’s collaborative efforts across government, law enforcement, consumer organisations and industry have boosted the community’s fight against financial crime, as the latest Targeting Scams report reveals a 13.1 per cent decline in reported losses to $2.74 billion in 2023. Article also details scam trends and tips to avoid being scammed. https://www.accc.gov.au/media-release/scam-losses-decline-but-more-work-to-do-as-australians-lose-27-billion
Rebel Sport owner faces escalating legal threat – 28 April 2024
The board of Rebel Sport owner, Super Retail Group, is facing an escalating crisis as Harmers Lawyers says more current and former employees have approached them, about a potential lawsuit amid allegations of an undisclosed relationship, involving the group’s boss, Anthony Heraghty, as well as governance issues and bullying claims. https://www.smh.com.au/business/companies/rebel-sport-owner-faces-escalating-legal-threat-20240429-p5fne1.html
Every Dollar Lost to Fraud in Australia Costs Firms AUD$3.68 According to LexisNexis True Cost of Fraud Study – 28 April 2024
Fraud has increased for 66% of Australian organisations year-on-year. Organisations incur an average cost of AUD$3.68 ($2.96 for retailers and $4.21 for financial institutions) for every Australian dollar lost to fraud. These costs encompass financial losses due to fraud, as well as internal labor expenses, external costs, legal costs and recovery fees, along with the expenses associated with replacing or redistributing lost or stolen merchandise.
Cyber attacks on firms are ‘in no way’ declining – 28 April 2024
Brendan Payne is a partner at McGrathNicol and operates in the cyber risk incident response and digital forensic space. In this article he reflects on the current state of affairs for cyber risks and how and why legal businesses should improve their cyber security frameworks, to avoid adverse implications. Business should also respond in a timely manner in the event of a cyber instance.
https://www.cyberdaily.au/culture/10479-cyber-attacks-on-firms-are-in-no-way-declining
I lost $2.5m of my super to scammers – 28 April 2024
More than 60 victims who have lost money from HSBC accounts in the past 12 months totalling more than $6 million have formed an action group to demand compensation and explanations about how the scams happened. Many claim the bank has attempted to buy them off with “goodwill” payments of around $200 for tens of thousands of dollars in losses each. The victims claim the banks are using a legal loophole to avoid financial liability for the thefts, responsibility for the money’s security or power to control the losses.
https://www.afr.com/wealth/personal-finance/i-lost-2-5m-of-my-super-to-scammers-20240423-p5flzp
White-collar crime goes unpoliced due to lack of funds: ASIC boss – 28 April 2024
ASIC has faced criticism inside parliament and more broadly, that it only pursues a small fraction of the complaints it receives every year. Chairman Joe Longo says he would love to run more court cases against badly behaving companies and dodgy directors, but his hands are tied because he does not have enough money.
Outgoing investigations boss Tim Mullaly blames focus on banks, insurers for plunge in ASIC, DPP charges – 28 April 2024
ASIC’s enforcement boss (Tim Mullaly) has blamed a belated focus on dodgy dealings by banks and insurance companies for a plunge in serious prosecutions. When quizzed about just two sets of criminal charges being laid by the Commonwealth Director of Public Prosecutions in the first nine months of 2023-24, Tim Mullally pointed to his investigators being tied up by complex civil actions in the wake of the financial services royal commission.
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Accounting bodies slam ATO’s use of client linking to tackle fraud woes – 28 April 2024
The ATO should have stepped up basic fraud prevention measures before resorting to a “burdensome” client-agent linking process that forces busy tax agents to do the heavy lifting, professional bodies say. CA ANZ, CPA Australia and the Institute of Public Accountants (IPA) said the recommendations contained in the Inspector-General of Taxation and Taxation Ombudsman’s report into the ATO’s management of tax identity fraud, showed there were other “relatively easy” steps to keep fraudsters at bay.
Binance founder is sentenced to four months in prison on money-laundering charges – 1 May 2024
Changpeng Zhao, the founder of the world’s leading cryptocurrency exchange, has been sentenced to four months in prison after pleading guilty to money-laundering charges last year. The company admitted to engaging in anti-money laundering activities, unlicensed money transmitting, and sanctions violations.
Australians are losing $5,200 per minute to scammers. There’s a way to cut that, but so far the government isn’t keen – 28 April 2024
Last year Australia lost an astonishing $2.74 billion to scammers. That’s more than $5,200 per minute. In Australia in 2022, only 13 per cent of attempted scam payments were stopped by banks before they took place. In 2022, people in the UK lost £2,300 per minute, which is about $4,400. The UK has two and a half times Australia’s population. If we want to cut Australians’ losses, it’s time to look at rules about to come into force in the UK.
Fraud, waste and abuse: How some doctors are exploiting Medicare and turning patients into ‘cash cows’ – 28 April 2024
The ABC asked experts to examine the records of several chronic pain patients to determine if any misbilling had occurred.
They said: “100 percent of the anesthetic claims we reviewed were questionable.” Stakeholders, including medical practitioners and healthcare executives, have called for an urgent reform of the billing processes.
NSW Fair Trading launches inquiry into strata management company Netstrata following ABC investigation – 2 May 2024
NSW strata and property services commissioner John Minns has announced a review of Netstrata and its operations.The ABC revealed the company Netstrata was routinely using its wholly-owned insurance arm to charge apartment owners insurance brokerage fees as high as three times the typical rate and was taking kickbacks from contractors and suppliers it hires. A “third-party independent expert” will conduct the review. Fair Trading says it reserves the right to take further regulatory action.
