Marketing employee charged over $300,000 fraud

5 April 2012 By

A Sydney man allegedly used his employer’s credit card to splurge $127,000 on holidays, electronic goods and other personal items.

The 25-year-old, from Darlinghurst, is also alleged to have siphoned more than $189,000 from the CBD-based marketing firm that he worked for, into his own account.

Police arrested the employee yesterday afternoon following a month-long investigation.

He was charged with fraud offences and is due to appear at Sydney’s Central Local Court today.

Detectives were tipped off about the offences, said to have occurred between April 2011 and March 2012, when the marketing firm noticed irregularities in its accounts.

Source: AAP, SMH 05/04/2012

About Rushmore Forensic

Andrew Firth is a director of Rushmore Group. He has conducted numerous investigations and other forensic accounting engagements in Australia, Singapore, the UK, Thailand, Hong Kong, Vanuatu, and the USA.

He is a former investigator with the Serious Fraud Office in the UK and specialises in complex financial investigations and providing other forensic accounting services.  He is a member of the Institute of Chartered Accountants and has appeared as an Expert Witness in numerous jurisdictions. To arrange an appointment with Andrew please call (02) 9954 6200.

 

Filed Under: Discovering a Fraud, Expense Claim Fraud, Investigation, Preventing Fraud Tagged With:

Accused Queensland Health fraudster Joel Morehu-Barlow lived it up with $11m lifestyle

16 December 2011 By

WHILE accused fraudster Joel Morehu-Barlow sits in a solitary jail cell at Wacol prison an entertainment package worth nearly $100,000 is en route from Europe for him.

Accused Fraudster Queensland Health

Accused Fraudster Queensland Health

Only days before the accused fraudster became the state’s most-wanted man and was eventually charged with defrauding $11 million, he was having the time of his life, enjoying a lavish spending spree.

The 36-year-old purchased an opulent $5.65 million River House in the new Pietra development at Moray St, New Farm, and paid for it in full.

But the spending didn’t stop there – his extravagant lifestyle was just beginning.

Court documents reveal Morehu-Barlow went on to purchase items including a top-of-the-range 2.15m 3D TV described as one of “the most expensive sets ever produced”.

He purchased the TV and associated accessories for $95,070 from Bang and Olufsen’s Fortitude Valley store. But little did he know the exclusive entertainment package which was sent from Denmark was due to arrive in Australia when he would behind bars.

The goods will be seized once they arrive in Australia.

During his short-lived spree he also purchased a luxury Mercedes-Benz and two top-of-the-range jet skis.

He also bought an elaborate, grey, 2009 Mercedes-Benz C63 AMG sedan for $135,214.

He then went on to buy two Sea-Doo jet skis at Brisbane Jet Skis at Zillmere on Brisbane’s northside.

One was a luxury performance model and the other a sports model, together costing more $42,000.

But he had little time to use his new plush toys, he would be arrested by police only eight days after he bought them. Documents show the self-proclaimed Tahitian prince was known by various names including Hohepa Morehu-Barlow, Joel Barlow, Joseph Barlow and Joel Hikairo Morehu-Barlow.

In the documents it reveals he held eight bank accounts with more than $1.5 million in them and another account in his company’s name which had a healthy balance of $2.91 million.

He also owned another two luxury cars – a grey, 2009 Mercedes-Benz C63 AMG sedan and a 2004, silver BMW 530i sedan.

Morehu-Barlow was also interested in music and art and had a selection of paintings and a baby grand piano.

(The Courier-Mail, Sophie Elsworth, 16/12/2011)

Filed Under: Discovering a Fraud, Finding Assets, Forensic Acccountant, Fraud Analytics, Investigation, Preventing Fraud, Warning Signs Tagged With: , ,

$1.96m Financial Planner Fraudster gets long jail sentence

16 December 2011 By

Ponzi operator Simon Finnigan, who defrauded investors of $1.96 million while he lived the life of an apparent millionaire businessman, has been sentenced to 10 years jail in what the sentencing judge said was one of the toughest terms imposed for a Ponzi scheme offence.

Financial Planning Fraudster Simon Finnigan

Some of the investors sitting in the NSW District Court wept with relief as Judge Michael Finnane told Finnigan he was sentencing him to 10 years jail, with a six-year non parole period.

Judge Finnane said the requirement to protect the community sometimes called for a longer sentence.

‘‘I think this is called for in this case because I see not the slightest evidence (Finnigan) has any appreciation of all the damage and destruction he has caused.”

Finnigan sat impassive as the judge said the sentence ”may seem to be one of the toughest ever imposed”.

Finnigan was not licensed as a financial planner, nor did his many companies – most noteably Financial Partners Pty Ltd – have any financial licenses.

He promised Financial Partners Pty Ltd would invest in shares, derivatives, property and in one case – Biotech Solutions Pty Ltd – a revolutionary water product that when listed on the stock exchange would produce huge windfall gains. He gave personal guarantees, and promised up to 15 per cent return.

Instead the money went on paying his personal credit card expenses, for overseas travel, the running costs of his business, and on interest to earlier investors. He pleaded guilty to nine charges spanning 2001 to 2007.

BusinessDay has confirmed with other investors that the extent of losses is much larger than the $1.96 million Finnigan was charged with and pleaded guilty to.

Finnigan was taken into custody in court. Justice Finnane said he would recommend to custodial authorities that Finnigan be assessed for entry to a minimum security prison.

Sourced from: http://www.smh.com.au/business/conman-gets-long-jail-sentence-20111216-1oyf1.html#ixzz1gfqsdXsJ, Leonie Lamont, December 16, 2011

Filed Under: Dealing With People, Discovering a Fraud, Investigation, Litigation, Preventing Fraud Tagged With:

$16m Queensland Health ‘fraudster’ arrested

11 December 2011 By

Police have arrested the man accused of embezzling $16 million from the Queensland government.

Hohepa Morehu Barlow

Alleged Queensland Health Fraudster

The manager of the finance division at Queensland Health’s Community Services Branch allegedly siphoned the millions from Queensland Health into private accounts over the past three years.

Police Minister Neil Roberts told ABC News Breakfast Hohepa Morehu-Barlow, also known as Joel Barlow, was arrested this morning when he tried to enter a New Farm unit.

“In the early hours of this morning, a little after 3.30am I understand, the alleged offender presented himself and tried to get into a unit and they were able to apprehend him,” Mr Roberts said.

“The individual has been taken into custody and is undergoing questioning.”

Queensland Premier Anna Bligh this morning welcomed news of the arrest, praising police for “getting their man“.

However, she said it was not the end of the matter and the government was working to close any loopholes that allowed $5 million to be taken from public purse over the past three years and $11 million in the past fortnight.

“This is just the beginning” she said. “It is unacceptable that this could happen and we are working to close any loopholes that exist“.

Police have not laid any charges against Mr Barlow yet.

Officers were yesterday investigating leads that members of the public had provided to Crime Stoppers.

Mr Barlow had just a small window of opportunity to give police the slip on Thursday afternoon, when the alleged theft first came to light.

Police raided his luxury $5.65 million riverside apartment in New Farm on Thursday evening, but there was no sign of the man who led a lavish lifestyle in Brisbane’s high-society and claimed to be a Tahitian prince.

It’s understood investigators may have missed the public servant by a matter of minutes.

Yesterday Ms Bligh said she was confident the state could recover the stolen money.

She confirmed $12 million of Mr Barlow’s assets had been seized by police and would be held during legal proceedings against him.

She admitted the checks and balances that should have prevented the alleged fraud had clearly failed, but she stopped short of saying whether heads would roll.

“I’m having all of that investigated by external forensic auditors and if there are people who have failed in their duty, then action will be taken against them” she said.

Senior government and Queensland Health officers, including the auditor-general, met with the Crime and Misconduct Commission on Saturday.

They were trying to piece together how the alleged fraud occurred and what lessons could be learned to prevent it happening again.

Ms Bligh dismissed allegations that Queensland Health had ignored an auditor-general’s report earlier this year that found public sector agencies were failing to maintain basic financial controls.

Queensland Health had implemented every single recommendation made in the report, she said.

“There has been no specific recommendation or commentary in relation to the financial processes within this part of Queensland Health,” she said.

Ms Bligh also dismissed the suggestion that the alleged fraud highlighted problems within Queensland Health, which was still reeling from the payroll bungle of 18 months ago.

Meanwhile, Mr Barlow’s New Zealand family said it was not aware of the allegations but intended to stand by him.

“He’s a naughty boy if he’s done that, but he’s still my whanau [family],” Mr Barlow’s aunt Josie Boldy told New Zealand’s Sunday News.

Source: www.brisbanetimes.com.au/queensland/alleged-queensland-health-fraudster-arrested-20111212-1oq27.html#ixzz1gGoCj8EL and AAP. Image Courtesy of The Australian.

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

Background checks on people & company’s

3 January 2011 By

Background checks on individuals or company’s? – 10 key steps to conducting corporate intelligence checks yourself

In business we are constantly forming new relationships and are introduced to new people and organisations. Before you agree to work with an individual or company it’s beneficial to run a few basic background checks.

Step 1 – The Name

For companies, this is a simple process of checking online with the corporate regulator.  In Australia this is the Australian Securities & Investments Commission.  New Zealand companies can be checked with the New Zealand Companies Office and the same can be done at the UK Companies Office.

Type in the exact name from the correspondence you have.  These searches also reveal other useful information, like the year of incorporation, the registered office and if the registration is still valid.

For individuals, I recommend typing the persons name into Google with quote marks around the first and surname. For example if you were searching for the name Andrew Firth.  I would search for “Andrew Firth” in quote marks. It’s also useful to try and locate a person by also adding in the name of the persons business, industry, or assumed residence e.g. “andrew firth sydney” or “andrew firth accountant”.  Other places that can be used to verify a person is the LinkedIn website or Facebook.

Step 2 – Tax, GST or VAT Number Search

A tax number search is a basic yet effective method of tracking individuals, companies and other unincorporated entities.  Online searches can be conducted either with the entities tax number of by simply typing in the person or company’s name.

Step 3 – The Trusty Phone Book

The online Whitepages or Yellow Pages can still be a very useful tool to find a persons address and phone number.  This can be cross matched to the results of other searches.  Online phone books work best where the persons surname is not common and you know the State or area where they are located.

Step 4 – Reverse Phone Number Searches

If you have a company or individuals phone number, I recommend typing this into Google with the area code enclosed in quote marks.  For example if the phone number was (02) 9954 6200, then type “02 99546200” in quote markets.  Also try the same search with the space removed e.g. “0299546200”.  Using Google in this way is like using a reverse telephone directory.  You will be surprised what can turn up!  It’s also entirely legal unlike a real reverse telephone directory.

Step 5 – Electoral Role Searches

Most electoral commissions allow you to search their registers or electoral roles for a small fee.  Google “electoral commission” to find the website for your location.

Step6 – Real Property Searches

If you have the address of a person, you can obtain the Transfer Deeds and other documents through the governments Land Titles Office.  In Australia these are State based and the web addresses can be found through Google.  These records provide very valuable information that may be difficult to find elsewhere.

Step 7 – Google Street View

You’ve probably used Google Street View to look at houses for sale, however it is also a great investigative tool and can be used to view a photo of the target’s address or determine if the address is commercial or residential.

Step 8 – Court Records

Court records can provide key insights into a person or company.  Run a Google search for court records and the location you are interested in to find the right resource for you.

Step 9 – Media Searches

A Media Search can be a key source of information in particular cases but for many people they can come up empty. Make a judgement call depending on the profile and background of the person or company involved.

Step 10 – Verify personal details with Professional Associations

Recently I was looking at forming a new venture with an individual and at the last minute I decided to check that the individual was a member of the CPA as had been disclosed on the persons business card and CV. On checking with the CPA, I found that the individual was not a current member of the CPA and hadn’t been for around 20 years. Verifying this one detail made me reassess the venture with the individual (which didn’t proceed). Even though I’m a professional investigator, I nearly made a basic and potentially costly mistake.  Remember never to accept what is presented to you at face value and always make enquiries to satisfy yourself that you know who you are dealing with. If you are interested in some red flags to look out for then read a recent article I wrote on the matter.

And if you are still not satisfied…Hire a Private Investigator

It may seem an extreme suggestion however if you wish to know what the target is actually up to then the use of Private Investigator can be a great investment.  You can request photo’s, audio, or video and the Private Investigator can give you real time surveillance that is unattainable through other means. Rushmore Forensic often uses Private Investigators on investigations and outsources the enquiries to a network of investigators across Sydney and Australia. Please contact us for further information on corporate intelligence, background checks and other forensic accounting matters.

About the Author

Andrew Firth is a Forensic Accountant in Sydney and Director of Rushmore Forensic. He has over 12 years experience in financial investigations, corporate intelligence and aspects of forensic accounting.  Andrew is based in Sydney and provides forensic accounting services throughout Australia.  If you have a matter which requires expert advice, please don’t hesitate to contact Andrew Firth for a complimentary and confidential discussion.

Filed Under: Investigation, Preventing Fraud, Warning Signs Tagged With: , , ,

Superannuation fraud syndicate in Sydney

13 December 2010 By

The ACCC has reminded consumers to be careful in protecting their superannuation account statements in particular and all their personal information more generally.

The Minister for Superannuation and Corporate Law, Senator Nick Sherry, recently issued a warning for Australian workers to exercise extra care in protecting their superannuation account statements and personal details. This is in response to information from the New South Wales Police Force that a Sydney-based fraud syndicate is using stolen identities to steal from victims’ superannuation accounts.

Syndicate members have allegedly stolen superannuation statements and used other counterfeit identity documents to set up self-managed superannuation funds (SMSFs). The offenders then open bank accounts and arrange for cash to be “rolled over” from legitimate funds into the fraudulent accounts.

The minister has advised that the vast majority of Australian workers have superannuation funds that are regulated by the Australian Prudential and Regulatory Authority (APRA). These funds are protected by law against theft and fraud. However, consumers should always be vigilant and careful to protect their personal information.

Fraudsters can use personal information to steal your identity.

Identity theft works in a range of ways, from simple methods to well organised scams. Many of us have a wealth of personal information readily available—cards in our wallet, mail, public records, information saved in our computers and information posted on social networking sites.

Identity theft can happen easily and quickly. By leaving your personal information readily available, scammers will have easy access to this information. For example, fraudsters will pay people to rummage through rubbish tips and steal letters, household bills and bank statements (also referred to as “dumpster diving”) to collect personal information.

The following are some Warning signs to watch out for:

  • You notice that amounts of money go missing from your bank account without any explanation.
  • You are unable to obtain credit or a loan because of an unexplainable bad credit rating.
  • A caller pushes you to provide personal information and discourages you from checking whether it’s a genuine request.
  • You get an email or a telephone call out of the blue asking you to “validate” or “confirm” banking details.

Protect yourself

  • Regularly check your credit card, bank and superannuation statements to ensure that suspicious transactions are detected.
  • Shred all documents containing personal information, such as credit card applications and bank statements. NEVER send money or give personal details to people you don’t know and trust.
  • If you receive a call from your bank or any other organisation, don’t provide your personal details—instead ask for their name and a contact number.
  • Check with the organisation in question before calling back. Never rely on a number provided in an email or click on the provided link—instead find the contact number through an internet search or back of your automatic teller machine (ATM) card.
  • Log directly on to a website that you are interested in rather than clicking on links provided in an email.
  • Always get independent advice if you are unsure whether an offer/request is genuine.

(Source: ACCC)

Read more about what fraudulent behaviors to watch out for on the Rushmore Forensic blog.

About Rushmore Forensic

Andrew Firth is a Forensic Accountant in Sydney and Director of Rushmore Forensic.  He has over 12 years experience investigating accounting irregularities, undertaking corporate intelligence and conducting other forensic accounting assignments.  Andrew is a former investigator with the Serious Fraud Office in the UK.  He has also worked for KPMG and Deloitte during his career. Andrew is based in Sydney and provides forensic accounting services throughout Australia.  If you have a matter which requires expert advice, please don’t hesitate to contact Andrew Firth for a complimentary and confidential discussion.

Filed Under: Investigation, Preventing Fraud Tagged With: , , ,

Payroll fraud accountant named by court

2 December 2010 By
Mark Benjamin (Source NZ Herald)

A senior accountant on a six-figure salary manipulated the company payroll to give himself a pay rise of just $10,000.

Mark Benjamin (Source NZ Herald)

Mark Benjamin (Source NZ Herald)

Name suppression has today been lifted from Mark Joseph Benjamin after he was convicted of seven fraud charges after a judge-alone trial in the Auckland District Court.

He appealed the suppression but was dismissed at a hearing at the High Court this morning.

The 45-year-old chartered accountant was a board member of the taxpayer-funded Hortresearch, a Crown Research Institute, and was also involved with the now defunct Auckland Regional Transport Authority.

In January 2006, Benjamin was hired as the chief financial officer for bulk food importer Kerry NZ Ltd. He negotiated for a salary of $180,000 but settled at $165,000.

But a few months later – at the same time two colleagues received pay increases – Benjamin gave himself a pay rise to $175,000. He did this by tampering with the computer payroll system, so that if anyone checked, it would show the $165,000 salary he was entitled to.

In June 2006, Benjamin took five days annual leave. But he gave himself the holiday pay on top of his monthly salary, effectively another $3500.

The following month, he took another five days leave. This time he reduced his monthly pay, but still on the basis of the bogus $175,000 salary – gaining an extra $1,120.

Then when Benjamin left Kerry NZ in August 2006, he failed to deduct the 10 days of leave – another overpayment of $10,709.

It was nearly two years before the fraud was discovered, with police laying seven fraud charges in July 2008.

In his defence, Benjamin claimed the $10,000 pay rise was verbally authorised – which was rejected by Kerry NZ bosses.

Defence counsel Mark Edgar told the Auckland District Court that if the salary rises would be “brazen” and discovered easily, if they were not legitimate changes.

He rhetorically asked why a man with Benjamin’s background as professional chartered accountant would deliberately act this way for a $10,000 pay rise – then do a poor job of covering his tracks.

Benjamin’s actions were a mistake, said Mr Edgar, as he was trialling the payroll system as a “test pilot” but forgot to correct the record. Similarly, he said the holiday pay bonuses were also errors of inexperience.

Judge David Wilson QC rejected Benjamin’s story and convicted him on all seven charges.

“I find beyond reasonable doubt that he did this dishonestly and without claim of right. His explanation for his conduct is a fabrication which I reject.”

Detective Sergeant Marty Laagland, officer in charge of the file, said he would alert the New Zealand Institute of Chartered Accountants about Benjamin’s convictions.

Benjamin could be struck off as a result.

“He had a real sense of entitlement, that’s the crux of it. He had a grudge against the company, he felt he deserved a pay rise, then manipulated the system to cover his tracks.”

Benjamin will be sentenced on December 21.

(By Jared Savage, NZ Herald.co.nz, 1/12/2010)

About Rushmore Forensic

Rushmore Forensic specialises in detecting, investigating and recovering funds that have been misappropriated by employees. We have a significant data analytics capability covering accounts payable, payroll, expense reimbursements and other financial systems.

For further information, please don’t hesitate to contact us for a confidential discussion.

Filed Under: Discovering a Fraud, Investigation, Payroll Fraud, Preventing Fraud Tagged With:
«Older Posts