Card counters ace fraudsters, consumers are investigating fraud more quickly

12 December 2012 By
Forensic Accountants frequently analyse credit card data as part of a fraud investigation

Forensic Accountants frequently analyse credit card data as part of a fraud investigation

For years scammers have been swiping ever-increasing fortunes from unsuspecting consumers.

But technology finally appears to be catching up with the fraudsters that prey on Australians with debit and credit cards.

Industry figures indicate the amount Australians are losing to card fraud has slipped this year as measures to fight overseas online swindles take effect.

According to the Australian Payments Clearing Association, fraud accounted for 15.6c in every $1000 of spending last financial year.

This was down from 16.3c for the 2011 calendar year.

While the number of fraud transactions increased slightly to 1.2 million in the year to June – up from 1.15 million in the year to last December – the total value of the transactions fell.

Fraudulent transactions totalled $284.5 million in the year to June, down from $301.6 million in the period to last December.

Fraud investigation rates peaked in the six months to last December after a spike in overseas fraudsters targeting Australian card data.

“Counter-measures have been in place for more than six months and we can see this coming through in this financial year data” association chief Chris Hamilton said. “We have actually seen a decline in card fraud in the first half of 2012.”

The figures showed cheque fraud rates continue to fall and now account for less than 1c in every $1000 paid by cheque.

Fraud on proprietary debit cards – where a PIN is required at a till – was flat at 4.9c in every $1000 worth of payments. Fraud on scheme credit, debit and charge-cards – where a signature is permitted or the card is used remotely – fell from 96c to 87.7c.

Australian Bankers Association chief executive Steven Munchenberg welcomed the trend, saying consumers were increasingly aware of the risks and banks were now quicker to respond to suspicious transactions.

(Source: Jane Harper, Herald Sun, 12 December 2012) 

Further Information – Forensic Accountant

Forensic Accountants frequently analyse credit card data as part of fraud investigations

If you would like further information about using our forensic accounting services for a financial investigation or other expert witness matter, then please contact us on (02) 8019 7262 for an obligation free discussion.

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Filed Under: Discovering a Fraud, Fraud Analytics, Fraud Investigation Tagged With: ,

Staffer who stole $250,000 from Bank gripped by ‘chronic gambling’

7 December 2012 By
Forensic Accountants Sydney Bank Fraud

Forensic Accountants commonly investigate frauds such as the one commiitted by an employee of a Sydney Bank.

A former Commonwealth Bank employee who stole almost $250,000 from customers’ accounts has been described by a magistrate as intelligent and resourceful but gripped by “chronic gambling”.

Karen Myhanh Chau, 40, stole almost $250,000 from wealthy clients, including author Thomas Keneally, and transferred the funds into a personal account.

She committed the crimes between October 2010 and January of this year.

Chau pleaded guilty in August to six counts of dishonestly obtaining financial advantage by deception and in October was sentenced to 18 months’ imprisonment with a non-parole period of one year.

In Downing Centre Local court on Wednesday, Deputy Chief Magistrate Jane Mottley ruled that Chau could serve out her sentence in home detention.

“She is clearly a resourceful and intelligent woman,” Ms Mottley told the court.

“She is likely to find it difficult to get employment in the financial industry as a result of this offence.”

Chau took the money from the clients in 72 separate transactions and put some funds back into some of the victim’s accounts to indicate interest was being earned.

The Commonwealth Bank has said it had refunded all the money to the clients.

Ms Mottley said Chau had endured tough personal circumstances in the early 2000s, including a miscarriage, and this had led to depression, contributing to her gambling addiction.

She said Chau was “gripped by a chronic gambling problem” and gambling had become a coping strategy for her.

“This offence is a clear manifestation of an unresolved addiction” she said.

Chau has no prior convictions and was described as a “model citizen” during sentence submissions in October.

The court heard she has been making excellent progress at gambling counselling sessions.

Her minimum home detention period expires in October next year.

(Source: AAP, 28 November 28 2012)

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If you would like further information about using our forensic accounting services for a financial investigation or other expert witness matter, then please contact us for an obligation free discussion.

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Filed Under: Forensic Acccountant, Uncategorized Tagged With: ,

ASIC obtains court orders permanently banning Sydney financial adviser after Fraud Investigation

5 December 2012 By
Forensic Accountants are frequently used by ASIC in their investigations

Forensic Accountants are frequently used by ASIC in their investigations

ASIC yesterday obtained court orders permanently banning Melinda Scott from providing any financial services and disqualifying her from managing corporations for 25 years after she defrauded clients of more than $3.6 million over 8 years.

The Supreme Court of New South Wales also made orders permanently restraining Roach Graham Scott Pty Ltd (RGS), a company of which Ms Scott, of Lilli Pilli, was sole director, from carrying on a financial services business or providing a financial service.

The Court declared between 9 February 2004 and 27 April 2012 both Ms Scott and RGS repeatedly and persistently engaged in dishonest conduct when providing financial services. In particular, the Court found Ms Scott and RGS obtained $3,632,759.46 from 56 separate clients, which Ms Scott generally used for her own personal benefit knowing that this was not in accordance with the clients’ instructions. The Court also found Ms Scott and RGS falsely told some clients their money had been invested in accordance with their instructions and was making returns.

ASIC’s investigation into Ms Scott’s conduct is continuing.

Ms Scott engaged in the aforementioned conduct when she was an authorised representative of Millennium 3 Financial Services Pty Ltd, a financial advice business owned by the Australia and New Zealand Banking Group Limited. Her authorisation was revoked on 15 May 2012.

ASIC first obtained court orders against Ms Scott preventing her from carrying on a financial services business in May 2012.

(Source: ASIC,  4 December 2012)

Filed Under: Financial Adviser, Forensic Accountant Sydney, Fraud Investigation Tagged With:

Out for 10 months: Oliver banned for illegal bet

21 November 2012 By
Forensic Accountants are frequently used in illegal betting investigations

Forensic Accountants are frequently used in illegal betting investigations

Disgraced jockey Damien Oliver has been disqualified for eight months after admitting to placing a $10,000 bet via a third party on a rival horse in a race in which he rode in 2010. Oliver has received a further two months’ suspension for using a mobile phone in the area of the jockeys room against the rules.

Oliver broke down as he admitted to stewards that he had placed the bet on a horse against which he was riding in a race at Moonee Valley two years ago, with former Western Bulldogs player and form analyst Mark Hunter named for the first time as the man who put the bet on for him.

Disgraced jockey Damien Oliver is disqualified for eight months after admitting to placing a $10,000 bet on a rival horse in a race in which he rode in 2010.

Oliver confessed that he had made the call on his mobile phone from the jockeys’ room at the track, another clear breach of Australian racing rules.

The 40-year-old cited psychological stress, injury and the imminent breakdown of his marriage as key factors for what his counsel, Robert Richter, subsequently described as “a single, isolated lapse of judgment“.

Stewards gave Oliver an eight month disqualification to be followed by a two month suspension allowing him to return to riding trackwork. During his disqualification, Oliver is banned from racetracks and stables.

After the hearing, Oliver issued a statement apologising to trainers, owners and supporters.

“People must not assume that my misdeed and lack of judgment … reflects on jockeys or the industry broadly” he said.

“I ask my fellow jockeys for whom I have the greatest respect to forgive my actions.”

In a hearing at Racing Victoria headquarters the jockey at the centre of the carnival betting storm cut a slim, distressed figure, at times struggling to present his case as his voice cracked with emotion.

Oliver, who has won all four of Australia’s greatest races — the Melbourne Cup, Cox Plate, Caulfield Cup and Golden Slipper — has nerves of steel when seated on a horse, but he presented a fragile, emotionally vulnerable persona in the hearing as he recreated the events leading up to the fateful night at the Valley when he placed the bet on Miss Octopussy, the favourite in a race in which he rode the market’s second choice, Europa Point.

Oliver said that he had been under enormous stress because of problems in his marriage to his wife Trish, the mother of his three children. He admitted that at the time he also had a problem with alcohol, was prone to binge drinking sessions and, despite his considerable success on the race track, was losing his self confidence as a jockey.

“My wife and I have three children and there was a period when she moved to her parents with the children. I feared I would lose my marriage. I felt very depressed about the personal problems I was feeling at the time.”

Oliver said he feared that significant legal fees he would incur as a result of any potential marriage break up added to the stress he felt and clouded his judgment.

But, he insisted, he rode his horse to the best of his ability and gave it every chance to win.

He said that on the night of the race he called Mark Hunter as an ‘‘unplanned’’ and ‘‘spur of the moment decision’’ and spoke to no other trainers or officials.

Oliver was paid $11,000, he said, as a result of the bet, with the money being passed to him in cash by Caulfield-based trainer Robert Smerdon.

“The period around 2010-11 was probably the worst period in my life” he said.

Rob Richter, QC, representing Oliver, had urged stewards to be lenient, citing Oliver’s age, his status in the profession and the fact that he had admitted his offence, allowing them to make a case, Richter said.

The lawyer contended that Oliver’s case should be measured against other jockeys who have laid bets in recent times, in particular Blake Shinn, the former Sydney rider, and Peter Robl, both of whom invested much greater amounts over a lengthy period.

Richter said that Oliver’s mental health and domestic situation should be powerful mitigation for what was, he argued, an uncharacteristic action by a man who had been at the top of the tree for more than 20 years. The fact that he had co-operated and shown both remorse and contrition should also be taken into account, Richter added.

Richter told the stewards that Lee Freedman, the trainer of Europa Point — and the man with whom Oliver had lived for several years as a teenage apprentice when he moved to Melbourne from his native Perth — had given the jockey a ”powerful character reference”, saying he had never known him to bet. Freedman had no problems with the ride on the night in question and was happy to employ Oliver as a jockey again,” Richter said.

“At the time he committed these breaches he was subject to extreme personal health issues … at the time he was under treatment … he was suffering the after effects of injury and psychological distress.”

Richter urged stewards to be lenient in their sentence, arguing that a lengthy disqualification at Oliver’s age ”would have a far greater impact than it would for someone who was not 40 years of age.

“The breach is totally out of character.”

In October The Age first revealed exclusively that the veteran jockey was under investigation for the alleged bet.

Then as Oliver prepared to ride highly fancied Americain in the Melbourne Cup two weeks ago, The Age broke the news that Oliver had admitted the alleged wrongdoing to Racing Victoria investigators — yet was free to continue his spring carnival campaign.

(Source: AAP)

 

Filed Under: Forensic Accountant Sydney, Illegal Betting, Investigation, Sports Integrity Tagged With: , ,

New apps catch employees forging timesheets

21 November 2012 By
Forensic Accountants are frequently used to conduct payroll fraud investigations

Forensic Accountants are frequently used to conduct payroll fraud investigations

Employers are using technology to monitor underperforming workers, giving new meaning to the old adage “time is money”.

In one case, a new timesheet mobile app helped the operators of the Wakefield Park Raceway in Goulburn, NSW, catch two employees forging timesheets.

The managing director, Matthew Ronke, was on his way to the track, about 10 minutes away, when he drove past one of his employees, taking a leisurely stroll when meant to be at work.

Pulling out his iPhone, Ronke checked the staff sign-on sheets via a productivity app called Deputy 2.0 installed the previous week. The staff member had been fraudulently signed on to work by a colleague. The pair were fired.

Fraud such as this had once slipped through the folds of the old paper-based system, Mr Ronke said.

“I don’t think it was a big problem but obviously it was a problem that we didn’t catch them doing it” he said.

Raceway staff are asked to register their arrival at work via iPads installed at the racetrack cafe.

“The majority [of staff] are quite happy with it … and seem to like they can actually go in and check [that] their hours are correct; and they know that’s going into the payroll [system] and that’s what they’ll get paid.”

It’s not technically spying, according to Deloitte Digital lead partner Frank Farrall, who last year used Twitter to catch an employee – no longer with the team – who was struggling to deliver outcomes on a project.

“They were saying, ‘I’m working all this time, doing all this and whatever,’ and we didn’t feel confident he was being truthful with us” Mr Farrall said.

The employees’ Twitter feed included numerous Foursquare check-ins at coffee shops around Melbourne when he was supposed to completing the project already behind schedule.

“He was not meeting his end of the bargain and lying about it. The technology exposes that’s happening. It’s not spying, just reconciling the truth.”

Some companies are using such apps to improve service or logistics rather than just keep an eye on employees. Google extended its Maps app with Maps Coordinate for enterprises in June, for example. The tech giant bills it as providing “real-time visibility” of team members and an ability to better manage job allocation .

Users say the technology provides a more granular way to measure worker output, and shifts the focus away from the number of hours in the office.

Apart from keeping an eye on staff and recording their hours, Mr Ronke said the biggest advantage of a smartphone-based timesheet management software was the ability to allocate tasks.

In Victoria last week for the V8 Supercar championship race – organised by Wakefield Park parent company Winton Motor Raceway – Mr Ronke was notified of a burst water pump. The push notification to his iPhone meant he could immediately organise it be fixed.

The last-minute requests and fluctuating business demand create extra opportunities for employees who make themselves available, he said.

“I believe strongly that outcome-oriented work is much better than time-based work, rather than someone punching the punching clock who’s just not adding value” Mr Farral said.

(Source: Mahesh Sharma, SMH, 19 November 2012)

 

 

Filed Under: Forging Timesheets, Fraud Investigation, Investigation, Payroll Fraud Tagged With: , ,

Alleged fraud involving more than $3m on business credit card

16 October 2012 By
Forensic Accountants commonly investigate expense reimbursement fraud

Forensic Accountants commonly investigate expense reimbursement fraud

A 40-year-old man has been charged with fraud after police allegedly seized $3 million worth of property – including wines, food, office supplies and cleaning products – they say he had stashed in warehouses across Sydney.

In January last year, police allegedly found a large amount of fraudulently obtained goods in a warehouse in Old Guildford in Sydney’s west and set up Strike Force Traver.

During the long investigation, millions of dollars worth of property were allegedly discovered at several warehouses across Sydney.

Police believe the items were bought illegally through a business using a credit card but never paid for between October 2010 and January 2011.

The man was arrested in Silverwater on Friday. He was charged with 27 counts of fraud, refused bail and will appear in Parramatta Local Court today.

Strike Force Traver, involving Fairfield local police, will continue their investigations.

Anyone with information should call Crime Stoppers on 1800 333 000.

(Source: Esther Han, SMH, 13 October 2012)

Filed Under: Forensic Acccountant, Fraud Investigation Tagged With: , ,

Magistrate flabbergasted at Baden-Clay delay

9 July 2012 By

Delay to forensic accounting report by the Queensland Police

It could take another five months for a forensic accountant employed by Queensland Police to analyse financial records belonging to accused murderer Gerard Baden-Clay, prosecutors say.

Mr Baden-Clay is accused of killing his wife and the mother of his three daughters, Allison, in their Brookfield home in April this year.

I can’t believe for any minute that it would take five months for an investigative accountant to look into the affairs of one defendant

Lawyers prosecuting the real estate agent briefly faced Brisbane Magistrates Court today to arrange the handing over of a “voluminous” brief of evidence to Mr Baden-Clay’s defence team.

Mr Baden-Clay was due to face the court via video-link from prison, but was instead represented by his solicitor Darren Mahony.

Prosector Danny Boyle told the court the Office of the Director of Public Prosecutions was ready to hand over 330 witness statements already contained in the brief of evidence, but said it could take up to five months for a forensic accountant with Queensland Police to provide her report on Mr Baden-Clay’s financial affairs.

Mr Bolye said police were also in the process of obtaining a further 50 to 100 witness statements.

Mr Boyle said police were also waiting on computer and phone examinations, as well as results from the post-mortem.

“The post-mortem tests are outstanding … the forensics pathologist was away last week and this week until Wednesday” he said.

Magistrate Chris Callaghan said he was “flabbergasted” to hear of the lengthy delay.

“I can’t believe for any minute that it would take five months for an investigative accountant to look into the affairs of one defendant” he said.

“The defence can’t be asked to make any decisions without the full brief.”

Mr Boyle argued the accountant’s statement was a “discreet matter” compared to other matters in the brief.

However, Mr Mahony also voiced concern at the delay.

“I don’t want there to be any delay in provision of other material, because we’re waiting on the statement of one accountant” he said.

Mr Callaghan ordered that the brief of evidence, excluding the statement from the forensic accountant, be handed to Mr Baden-Clay’s legal team by August 20.

He ordered that Mr Baden-Clay face court again on September 3.

Mrs Baden-Clay’s body was found on a Brisbane creek bank 10 days after her husband reported her missing on April 20.

Earlier this month, Mr Baden-Clay was arrested and charged his 43-year-old wife’s murder and interfering with her body by moving her to the location where she was found.

Court documents have previously revealed that Mr Baden-Clay’s debts totalled about $1 million. It is alleged he stood to gain about $960,000 from his wife’s life insurance and superannuation policies.

He was refused bail and remanded in custody.

(Source: Marissa Calligeros, Brisbane Times, July 9, 2012)

Further Information – Forensic Accountant

If you would like further information about using our forensic accounting services for a financial investigation or other expert witness matter, then please contact us for an obligation free discussion.

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Filed Under: Forensic Acccountant, Investigation, Litigation Tagged With:

Warrnambool drug dealer convicted, fined

7 June 2012 By

A Warrnambool recreational drug user who claimed he supplied friends with amphetamine at below cost price has been convicted and fined $3500 after trying to sell drugs to a security guard.

Benjamin Thornton, 19, of Sharpe Avenue, pleaded guilty in Warrnambool Magistrates Court to trafficking amphetamine and dealing with property suspected of being the proceeds of crime.

Police said Thornton attempted to sell one gram of amphetamine to a security guard at the Whalers Hotel in Warrnambool that at 3.10am on March 11.

He was detained by the guard until police arrived. Thornton was found by police to be in possession of three deal bags containing about 2.5 grams of amphetamine and $300 in cash. He told police he bought five grams of amphetamine in Geelong the day before for $112 a gram and had sold some of that to friends for $100 a gram.

Thornton told police he bought the drugs “just so we can have a good time at the Folkie weekend”.

Defence counsel Tony Brown said his client had been unemployed for eight months and decided to buy drugs for himself and his friends from his first pay cheque.

Magistrate Jonathan Klestadt said he did not believe Thornton had gone to Geelong and bought the drugs in a one-off transaction, describing it as an unbelievable version of events.

Mr Brown said his client claimed to have bought the drugs from a friend and was a sporadic user.

Mr Brown said his client wanted to move to Western Australia to work in the mines and a drug conviction could put an end to those ambitions.

Mr Klestadt said the use of illicit drugs was an abuse of the user’s body.

He said Thornton had taken the same initial steps as countless other people who were now either dead or in jail.

The magistrate said he was not prepared to fine Thornton without recording a conviction because a strong message had to be sent to others.

He said he understood a conviction could be a tragedy for Thornton’s future career prospects.

(Source: Andrew Thomson, Warrnambool Standard, 6 June 2012)

Further Information on Proceeds of Crime

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Filed Under: Proceeds of Crime Tagged With:

Brisbane man on drug, weapon and proceeds of crime charges

7 June 2012 By

A Burpengary Queensland man who yelled at police when he was caught speeding yesterday afternoon has been charged for several offences, including drug possession.

Police said they had to detain the 25-year-old man after he became angry when spotted speeding along Joyce Street around 3pm.

Police say they found a large amount of drugs, money and utensils in his home.

The man was charged with one count each of possessing a schedule 1 drug, possessing a dangerous drug, possessing utensils, possessing a thing used in connection with smoking a dangerous drug, possessing proceeds of crime, possessing a restricted weapon, unlicensed driving and obstructing police.

He was bailed and will appear in Caboolture Magistrates’ Court later this month.

(Source: Kieran Rooney From: The Courier-Mail June 05, 2012)

Further Information on Proceeds of Crime

If you would like further information about using our forensic accounting services for a proceeds of crime or other expert witness matter, then please contact us for an obligation free discussion. We provide services to corporations, law firms and individuals in Sydney, Brisbane, Melbourne, Adelaide, Perth and across Australia.

 

Filed Under: Proceeds of Crime Tagged With:

Player’s drug case is postponed

7 June 2012 By

The drugs case against suspended South Adelaide Football Club player Guy O’Keefe has been adjourned until July.

The 22-year-old has yet to plead to charges of trafficking and possessing ecstasy, using ecstasy and dealing in property suspected to be the proceeds of crime.

Prosecutors in Victoria will allege O’Keefe was arrested at Nhill on February 27.

He was allegedly pulled over and, during a search of his car, officers found 160 ecstasy pills and $30,000 cash.

Nhill Magistrates Court adjourned O’Keefe’s matter yesterday until July.

(Source: June 05, 2012, Adelaide Now)

Further Information on Proceeds of Crime

If you would like further information about using our forensic accounting services for a proceeds of crime or other expert witness matter, then please contact us for an obligation free discussion. We provide services to corporations, law firms and individuals in Sydney, Brisbane, Melbourne, Adelaide, Perth and across Australia.

 

Filed Under: Proceeds of Crime Tagged With:
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