FRAUD – AUSTRALIA

ATO beefs up internal processes after scandal

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Original article by Tom McIlroy
The Australian Financial Review – Page: 6 : 11-Jan-18

The Plutus Payroll fraud has prompted the Australian Taxation Office to review and strengthen its internal integrity and fraud controls. The ATO has also revamped its fraud awareness training programs, while senior executives have participated in regular meetings of the Inspector-General of Taxation’s review of fraud control management. The son and daughter of former deputy commissioner Michael Cranston are facing criminal charges over his role in the Plutus fraud, while Cranston himself has been charged with abuse of public office.

CORPORATES
AUSTRALIAN TAXATION OFFICE, PLUTUS PAYROLL AUSTRALIA PTY LTD, AUSTRALIA. OFFICE OF THE INSPECTOR-GENERAL OF TAXATION, AUSTRALIA. DEPT OF FINANCE, AUSTRALIA. DEPT OF HUMAN SERVICES, AUSTRALIA. DEPT OF IMMIGRATION AND BORDER PROTECTION, AUSTRALIA. DIRECTOR OF PUBLIC PROSECUTIONS

Jackson faces 166 charges of graft

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Original article by Pia Akerman
The Australian – Page: 3 : 21-Nov-17

Former Health Services Union national secretary Kathy Jackson is to stand trial over claims she defrauded and stole just under $A500,000 in union funds from the HSU. Jackson is facing a total of 166 charges, relating to the years between 2003 and 2011. She could face a maximum jail term of 10 years if found guilty. A date for her trial is yet to be set, with it being possible that she might not go to trial until early 2019.

CORPORATES
HEALTH SERVICES UNION OF AUSTRALIA, COUNTY COURT OF VICTORIA, AUSTRALIA. FAIR WORK COMMISSION

Kinghorn facing jail over $30m tax fraud

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Original article by Geoff Winestock, Misa Han
The Australian Financial Review – Page: 1 & 4 : 1-Nov-17

RAMS Home Loans founder John Kinghorn has pleaded not guilty after being charged with two counts of tax fraud. The Australian Federal Police will allege that Kinghorn avoided tax liabilities totalling $A30m after claiming that he did not control any companies that were registered in the Jersey Islands. He could be sentenced to up to 10 years in jail if he is convicted. Kinghorn gained $A650m from the sale of an 80 per cent stake in RAMS via an IPO in 2007.

CORPORATES
RAMS HOME LOANS PTY LTD, ALLCO FINANCE GROUP LIMITED, AUSTRALIAN FEDERAL POLICE, LOCAL COURT OF NEW SOUTH WALES, KALOMA CORPORATION, KALOMA PACIFIC LEASING, TRYDEN ENTERPRISES, NEW SOUTH WALES. INDEPENDENT COMMISSION AGAINST CORRUPTION, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN TAXATION OFFICE, SUPREME COURT OF NEW SOUTH WALES

ANZ exec’s identity stolen for Westpac loan

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Original article by Duncan Hughes
The Australian Financial Review – Page: 7 : 11-Aug-17

The Australian Payments Network has stated that more than $A175 million worth of online payments in 2016 were the result of domestic identity fraud, an increase of 28 per cent. One victim of this type of fraud was an ANZ executive, whose stolen drivers’ licence information was used to fraudulently secure a $A30,000 loan from Westpac. The head of the Black Economy Taskforce recently stated that widespread identity theft is "systemically undermining" Australia’s banking and financial systems.

CORPORATES
AUSTRALIAN PAYMENTS NETWORK, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, VICROADS, KPMG AUSTRALIA PTY LTD

I was stooge for AWU: Blewitt

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Original article by Paige Taylor
The Australian – Page: 6 : 7-Jul-17

Former Australian Workers’ Union official Ralph Blewitt has appeared in the Perth Magistrate’s Court to face 31 charges of fraud. The charges relate to his alleged involvement with the AWU Workplace Reform Association in the 1990s. The Association was set up by then AWU senior official Bruce Wilson, who received legal advice from former prime minister Julia Gillard on its establishment. Blewitt said after his court appearance that the charges relate to monies of over $A300,000 linked to the fund. He claims that he was just the fund’s "bagman", and that he was set up to be the "fall guy".

CORPORATES
AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, PERTH MAGISTRATE’S COURT, AUSTRALIAN WORKERS’ UNION – WORKPLACE REFORM ASSOCIATION INCORPORATED, SLATER AND GORDON LIMITED – ASX SGH

Cranston’s long ATO career ends in court

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Original article by Joanna Mather, Misa Han
The Australian Financial Review – Page: 7 : 14-Jun-17

Australian Tax Office veteran Michael Cranston has formally resigned in the wake of revelations about a massive tax fraud that involves his son and daughter. Cranston himself was not involved in the $A130m tax fraud, but he has been charged with two counts of abuse of public office. The deputy commissioner of taxation has been suspended without pay since the tax scam was exposed, while another three ATO officials have also been suspended while the investigation into the scandal continues.

CORPORATES
AUSTRALIAN TAXATION OFFICE

Labor baulking at union calls for bosses to be jailed for wage theft

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Original article by Ewin Hannan
The Australian – Page: 4 : 6-Jun-17

Transport Workers’ Union national secretary Tony Sheldon says executives of companies that persistently engage in wage theft should face criminal penalties, which could include jail terms. ACTU secretary Sally Mc­Manus supports increased penalties for wage exploitation, arguing that the current sanctions are not a deterent. However, she does not support jail terms for wage theft, while the Federal Opposition’s workplace relations spokesman Brendan O’Connor says Labor is not convinced of the need for such penalties.

CORPORATES
TRANSPORT WORKERS’ UNION, ACTU, AUSTRALIAN LABOR PARTY

Tax office in stunning U-turn on gold fraud

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Original article by Robert Gottliebsen
The Australian – Page: 19 : 12-Jan-17

Under the Howard government’s tax reforms, Australian gold refiners were required to pay GST on gold that is not of investment grade, although investment-grade gold in bars did not attract GST. Refiners warned the Australian Taxation Office that the system was subject to widespread fraud, which is estimated to have cost taxpayers around $A600m. The ATO targeted gold refiners, believing that they were involved in the massive tax fraud, and its actions threatened the nation’s entire refining industry. The ATO subsequently backed down in late 2016 and agreed to measures first proposed by gold refiners some three years earlier. They will now be permitted to buy high-purity gold that is not marked as being of investment grade without attracting GST.

CORPORATES
AUSTRALIAN TAXATION OFFICE, FOCUS MINERALS LIMITED – ASX FML, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, AUSTRALIA. OFFICE OF THE INSPECTOR-GENERAL OF TAXATION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY

Australia Post workers compo ‘rort’

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Original article by Aaron Patrick
The Australian Financial Review – Page: 1 & 8 : 30-Nov-16

A former Australian Post workers’ compensation manager has alleged that some 38 per cent of its 36,743 employees have claimed such compensation. The ex-manager says workers’ compensation fraud is rife within the postal service, and that the company would be profitable if it cracked down on such practices. The former manager also claims that Communications, Electrical & Plumbing Union official Jim Metcher was responsible for Australia Post abandoning a proposed push to reduce the cost of its workers’ compensation scheme.

CORPORATES
AUSTRALIA POST, COMMUNICATIONS, ELECTRICAL, ELECTRONIC, ENERGY, INFORMATION, POSTAL, PLUMBING AND ALLIED SERVICES UNION OF AUSTRALIA, COMCARE AUSTRALIA, AUSTRALIA. SAFETY, REHABILITATION AND COMPENSATION COMMISSION, CARROLL AND O’DEA

Corruption in daycare costs $1bn

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Original article by Rick Morton
The Australian – Page: 1 & 4 : 4-Oct-16

Australia’s family daycare industry is under scrutiny amid revelations of widespread fraud in the sector. Leaked documents show that 13 family daycare providers have been charged with fraud in the last 10 months, while the Australian Federal Police have seized some $A8m worth of assets. It is estimated that fraudulent conduct in the sector has cost taxpayers around $A1bn in the last two years, and there are concerns that some of this money could have been redirected to terrorist organisations such as Islamic State by their supporters in Australia.

CORPORATES
AUSTRALIA. DEPT OF EDUCATION AND TRAINING, AUSTRALIAN FEDERAL POLICE, AUSTRALIAN LABOR PARTY, NEW SOUTH WALES. DEPT OF EDUCATION AND COMMUNITIES, VICTORIA. DEPT OF EDUCATION AND TRAINING