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.

We provide services to corporations, law firms and individuals in Sydney, Brisbane, Melbourne, Adelaide, Perth and across Australia.

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

Queensland Government’s criminal history checks fail to pick up third public servant

16 December 2011 By

FRESH concerns have emerged over the State Government’s ability to vet staff after revelations that a third public servant with a criminal history has been discovered this year.

Criminal Background Check

Just days after revealing a man who allegedly embezzled $16 million from Queensland Health had a criminal history in New Zealand, The Courier-Mail has learnt that Corrective Services has hired a prison guard convicted of drug and weapon offences.

The guard was handed a job because a person ticked a wrong box during the check process.

Jennifer Dann was employed full-time by Queensland Corrective Services in July and worked at the Brisbane and Woodford correctional centres.

Dann was sacked three months later but only after concerns from an outsider were raised that a woman with her criminal history would be allowed to guard prisoners.

This follows a blunder in March when a Croatian man on Interpol’s most wanted list was discovered working as a state government security guard after 18 months patrolling the executive building and courts.

The Government does not undertake its own criminal checks, rather it sends names of applicants to the Queensland Police Service, which runs them through the national criminal database Crimtrac. The information is returned to the departments for their assessment.

According to court records, Dann has a conviction recorded at Caboolture Magistrates Court in 2000 for possession of a dangerous drug and weapon as well as secure storage of a weapon.

Acting Corrective Services Commissioner Marlene Morrison acknowledged the error and said the check did pick up her history and her job application was rejected. However, an administrative error resulted in Dann’s employment after she sought a review.

Ms Morrison said Dann worked full-time at Brisbane Correctional Centre and Woodfood Correctional Centre for three months but was sacked the day after they found out.

“A review of the criminal history checking established that an administration officer mistakenly ticked the incorrect box on a form” she said.

Ms Morrison said there was no evidence of impropriety during Dann’s tenure, but did not say if other people with criminal histories had been employed as prison guards.

In similar circumstances, the Department of Public Works only became aware of the past of security guard Marino Katalinic, 36, after he held his job for 18 months.

He was sacked on May 31 this year after he was found guilty of impersonating a police officer and The Courier-Mail revealed he was wanted by Croatian authorities over drug and theft convictions from 2004.

Responding to the Government’s failure to pick up on Morehu-Barlow’s criminal history, Police and Corrective Services Minister Neil Roberts this week acknowledged flaws with the system.

The three cases raise serious questions about the State Government’s handling of employees’ criminal checks.

The latest revelations come as three senior health managers were stood down on full pay by Queensland Health yesterday pending an investigation into the failure to detect the illegal transfer of millions of dollars.

But the decision sparked fresh calls for Health Minister Geoff Wilson to be sacked as the Opposition insisted the Bligh Government had a long record of blaming only bureaucrats.

Police have charged Brisbane socialite and Health purchasing officer Joel Morehu-Barlow with one count of defrauding the department of $11 million.

An investigation last year cleared him of any wrongdoing despite a detailed complaint, while payments of $4 million to a trading entity set up by Morehu-Barlow are outlined in the department’s annual reports.

(Courier Mail, Alison Sandy and Steven Wardill, 15/12/2011)

Filed Under: Discovering a Fraud, Forensic Acccountant Tagged With: , ,

Accountant in $45m Banking Fraud

15 December 2011 By

Rajina Subramaniam defrauded her employer of $45 million.

Castle Hill Accountant in $45m Fraud

THE diamonds and sapphires were stored under her desk and never worn, the four multimillion-dollar beachside apartments left unattended.

And when detectives finally came to arrest the Sydney mother Rijina Rita Subramaniam for defrauding her employer of $45 million, not one of the luxury items she had bought with the money was among her personal possessions.

In one of the largest cases of fraud by a woman in NSW history, Subramaniam repeatedly siphoned off tens of thousands of dollars from ING Australia, where she was an accountant for more than a decade.

The 41-year-old from Castle Hill spent the money on seven prestige properties – including four units on Bondi Beach’s exclusive Campbell Parade – 600 pieces of designer jewellery, and 200 perfume and make-up items. But then she never touched them.

Yesterday the Downing Centre District Court was told that Subramaniam was motivated, not by greed, but by a desire for revenge over the allegedly abusive sexual relationship she was having with a workmate, and an overwhelming need for positive affirmation.

Subramaniam’s sentencing hearing heard that she had extremely poor self-esteem, due in part to the sexual abuse she allegedly experienced as a child at the hands of her grandfather and two uncles.

After getting involved with a colleague at ING, she came to perceive the relationship as abusive but continued to see the man for years. This alleged abuse and the feeling that her supervisors were bullying her led to a desire for revenge and to ”get back at the system and others within the system”.

According to Dr Stephen Allnutt, who was called as a witness for the defence, the flip-side of these feelings was a powerful desire for recognition and empowerment, desires that were fulfilled by spending money.

Judge Michael Finnane said that Subramaniam appeared to gain satisfaction from ”being applauded by [shop] assistants [who said] ‘how wonderful you’ve come back to us again, a wealthy woman like you and a woman of such discrimination and taste … we’ll only show you the very good stuff because you’re someone very special”’.

So grateful was she for the warmth and attention, Subramaniam gave one shop assistant $1.3 million to buy a house.

Subramaniam’s lawyer, Tim Game, SC, said Subramaniam should not be jailed because she would not be able to get the psychological care she needed.

Judge Finnane will hand down his sentence in February.

Sourced from: www.smh.com.au/nsw/womans-quest-for-selfesteem-and-revenge-cost-boss-45m-20111215-1owya.html#ixzz1gfN8sApi, Paul Bibby Courts, 16/12/2011. Image courtesy of stuff.co.nz

Filed Under: Discovering a Fraud, Forensic Acccountant, Investigation, Warning Signs Tagged With: , ,

Capital Gains Tax (CGT) and Divorce

28 March 2011 By

CGT and Divorce

Where there is a breakdown in a personal relationship, and the ownership of an asset changes, there is a CGT relief measure that applies.

Q. I am in the process of a divorce settlement. Together with my former spouse we own two investment houses and a business. We have decided to split 50-50, with her taking the investment houses and I keep the business, which she has not being involved in. She is taking the CGT into account for the houses and I’m not sure of the legalities of the CGT for the business and rental houses. All were purchased after 1993.

A. It’s interesting when you do a search on capital gains tax and divorce there is very little listed as being produced by the ATO. One of the few things that the ATO does offer is a list of assets that are CGT exempt. These include:

  • an asset acquired before September 20, 1985
  • cars, motorcycles and similar vehicles
  • compensation received for personal injury
  • disposing of a main residence
  • a collectable – for example antiques or jewellery costing $500 or less
  • a personal use asset acquired for $10,000 or less – for example, items such as boats, furniture, electrical goods and household items used or kept mainly for personal use or enjoyment. Land and buildings are not personal use assets
  • disposing of an asset to which the small business 15-year exemption applies
  • the exchange of shares and units owned in a company or trust that is taken over, if certain conditions are met, and
  • shares in a company or interests in a trust where there has been a demerger and certain conditions have been met.

Although not strictly an exemption, there is capital gains tax relief that applies where the ownership of an asset changes as a result of divorce. The relief is in fact not optional and must be applied where a legally binding agreement has been entered into. This could be an agreement imposed by the family court or one mutually agreed between the parties to the divorce.

Under the rollover relief that must be applied in the case of a divorce agreement there are no capital gains tax implications for the person disposing of an asset. The person who receives the asset as a result of the divorce agreement takes over all of the CGT history related to the asset.

In relation to the divorce settlement with your wife this will mean the rental properties being transferred to her will be regarded as being purchased by her when you purchased them as a couple. There is no capital gains implication for you but she will pay CGT when she sells them if the net sale proceeds exceed the cost paid by you as a couple.

With regard to the business that you will be retaining, there is no capital gain payable by your wife. When the business is sold you may be able to take advantage of the various small business capital gains tax concessions. These include the 15 year asset exemption, the 50 per cent active asset exemption, and the retirement exemption. To be eligible for these concessions you must either have a turnover of less than $2 million or meet the other criteria.

(Source: CGT is as certain as death and taxes, Max Newnham, 28/3/11, SMH Money)

Further Information

If you would like further information about using our forensic accounting services for a divorce, litigation, asset search, or other forensic accounting 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. Call now on (02) 8019 7262.

 

Filed Under: Family law, Forensic Acccountant 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: , , ,