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Archive for the ‘FRAUD’ Category

Learn how easy it is to make fake passports and scam the rich into trusting you with thousands of dollars.

If the fraud industry were its own country, it would have the fifth strongest economy in the world, just ahead of the UK. Come and meet the fraudsters who’re making a killing from the fastest growing crime on Earth.


Henry Sapiecha


Former Anglo American mining executive Glenn Tonkin

Anglo American is pursuing a former Brisbane-based executive in a civil suit in Brisbane’s Supreme Court.

A FRAUD claim against a senior Queensland mining boss has ballooned with his employer accusing him of stealing more than twice as much as previously thought.

Glenn James Tonkin, 50, from Mount Samson, west of Brisbane, was accused in September of rorting $4.5 million from global mining giant Anglo American’s Queensland coal business between 2013 and 2014.

After swiftly freezing his assets and hiring investigators to probe his past, shortly before Christmas the company slapped him with another $5.3 million damages claim — alleging he also rorted the company when he worked to expand a copper mine in South America between 2009 and 2011.

Tonkin is accused of using an elaborate scheme of fake invoices to secretly siphon company money to his offshore bank accounts in the Caribbean and Hong Kong, according to documents filed in a civil suit in Brisbane’s Supreme Court.

The claims arose in September while he was on a $315,000 salary working as the project manager of a central Queensland mine — where he had the power to approve payments to contractors.


In documents filed to the court, his work colleagues at Anglo’s Brisbane CBD office and its mine project in central Queensland claimed he had been on a spending spree — buying a 50-foot catamaran worth nearly $1 million, a Harley Davidson and a Mercedes.

A colleague who worked as a construction manager at the Grosvenor mine, Greg O’Donnell said that Tonkin telephoned him in late August to boast about buying a Harley.

“He said to me … he had bought a (new) Harley Davidson ‘breakout’ motorcycle. He said (it was) blue because everyone has a red one.

“He said he bought the top model and (he had purchased upgrades).”

Mr O’Donnell also claimed Tonkin had boasted about his boat and had arranged a sailing trip for a dozen colleagues from the Royal Queensland Yacht Squadron in Manly in February 2013, documents show.

“He said that … it was quite large … and it could berth himself and his wife on one side and children on the other.”

Another colleague, commercial manager Stephen Grant said he went to a Christmas party at Tonkin’s Mount Samson home.

“Mr Tonkin’s home is very impressive and well presented … (it) is on a large number of hectares and has a large entertaining area, a pool and a very substantial home theatre,” Grant stated in the court documents.

Tonkin’s impressive property portfolio also includes a home in Holland Park in Brisbane’s southeast.

Mr Grant said he was surprised when Tonkin drove to work on what would be his last day at the company in “what appeared to be a brand new (black) Mercedes”.

“Mr Tonkin said the car was an asset of his family trust,” Mr Grant said.

Mr Grant said Tonkin told him the car was bought “to solve a tax problem”.

It is alleged that Tonkin approached contractors to the Australian and South American mining projects asking them to pay a company he secretly owned for phantom equipment or consultancy work.

The contractors didn’t know they were being used by Tonkin to try and hide his alleged fraud.

The contractors would later pass on the charges to Anglo American and Tonkin would green light payment. No equipment or services were allegedly ever provided, but amid mine projects worth billions the $9.8 million was allegedly not missed.

Court files show Anglo spent $US2.8 billion expanding the Los Bronces mine in Chile — and of this $500 million was with contracts entered directly by Anglo staff such as Tonkin.

It appears Tonkin didn’t see the allegations coming because on the day he was confronted by his bosses and chose to resign, he emailed contractor Andrew Barnes thanking him for his help.

“The payment was all completed … thanks for your help with this, I owe you a bottle of red,” Tonkin wrote.

Tonkin is expected to deny the allegations and defend the claim.

In the case involving the alleged payments from the coal mine development in Queensland, he has claimed “self-incrimination privilege against the production of some documents and information”.

Anglo succeeded in getting court permission to search his Mount Samson home.

And on October 24, he also chose to voluntarily transfer $3.2 million from his Hong Kong bank account to the lawyers acting for Anglo — a move that Anglo claims “amounts to an admission”.

The alleged con unravelled in mid-August after an eagle-eyed colleague Phillipa Starmer noticed one of her emails had been altered. After an investigation, the HR department found it was likely Tonkin was responsible.

Tonkin admitted he had breached procurement guidelines — a relatively minor misdeed — but rather than stand aside while he was investigated Tonkin chose to resign.

When the HR boss began digging, he found the US consultant named in the email — Hank Testolin — didn’t exist. Alarm bells rang.

In November Anglo sent its lawyer to Santiago in Chile to interview potential witnesses in the case against Tonkin.

The case returns to court on January 29.

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ONE of Britain’s most prestigious companies and banking groups is in crisis after police raided the home of one of its former executives secretly filmed buying crystal meth, crack cocaine and hiring rent boys on company funds.

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Rev Flowers was allegedly caught on camera buying drugs

And the scandal now threatens to engulf the Labour Opposition with questions over how much the party knew about the man they appointed to their finance and industry board.

The Co-operative Group, founded in 1844, runs sprawling interests in the UK from supermarkets and pharmacies to funeral homes, car dealerships and financial services and has more than 100,000 employees.

But it’s the Co-op’s banking arm that has thrown its operations into crisis with accusations levelled at its former chairman Reverend Paul Flowers.

The Methodist Minister was secretly filmed allegedly buying crack cocaine, crystal meth and ketamine from a trafficker before texting “turning into a two-day, drug fueled gay orgy” and “have 2 bags of Charlie here and have ordered another 5….enough? Px.”


The buying and texting was about the time the 63-year-old was giving evidence to Parliament’s Treasury Select Committee about the Co-op Bank’s finances after the Bank of England identified a AUD$2.6 billion black hole in its accounts.

The Bank – described as one of the most ethical in Britain – lost $1.2 billion in the first six months and Rev Flowers struggled to answer why.

Indeed he struggled to get much right before the committee and said he thought the bank’s assets totalled $4.8 billion when in fact they were closer to $76 billion.

On Wednesday, the home of Rev Flowers, who is believed to have left for Europe to avoid the controversy was being searched by police.


Rev Flowers' house has been raided by police

Rev Flowers’ house has been raided by police Source: No Source

A spokesman for the West Yorkshire Police confirmed the home was being searched following the drug buying revelations first made by a Sunday newspaper last weekend. At the time he was forced to quit the bank this week, Rev Flowers was on $230,000 a year salary.

Shortly after revelations of a police inquiry Prime Minister David Cameron said Treasurer George Osborne was in discussion with financial regulators as to the form of a formal inquiry into the scandal.

At Question Time in Parliament, Mr Cameron said there were clearly questions that needed to be asked.


“Why was Rev Flowers judged suitable to be chairman of a bank, why weren’t alarm bells ringing earlier, particularly by those who knew him?” he said.

The news was also bad for Britain’s Labour Party with leader Ed Miliband facing growing questions to discuss the former bank boss’s links to the party.

Tory Chairman Grant Shapps has demanded to know if the Labour leader and Shadow Treasurer Ed Balls knew of past scandals involving the “Meth Minister”, explain why he employed him onto the party’s business advisory group and admit how many donations were made and private informal dinner parties the pair had.

“What we can now see is that this bank, driven into the wall by this chairman, has been giving soft loans to the Labour Party, facilities to the Labour Party, donations to the Labour Party, trooped in and out of Downing Street under Labour, still advising the leader of the Labour Party,” Mr Cameron told Parliament.

Branches Of Co-operative Bank To Be Cut By 15 Percent

“And yet, now we know, all along they knew about his past. Why did they do nothing to bring to the attention of the authorities this man who has broken a bank?”

The Co-operative Group chairman Len Wardle was yesterday forced to quit amid the deepening scandal, acknowledging that he led the board that appointed Rev Flowers three years ago.

It is known Mr Balls received a $75,000 donation from the Bank in 2011/12. It was also revealed on Wednesday that Rev Flowers was forced to resign as a town councillor two years ago after being caught using a work computer to watch gay porn. He also allegedly stayed in top hotels to have sex with rent boys, with one now 21-year-old male prostitute confirming he was paid more than $1000 a night for drug fuelled “debauchery”. At the time he resigned from the council, he cited workload at the Co-op Bank.

Rev Flowers was also convicted for gross indecency with a trucker in a public toilet in the 1980s. The church forgave him and he continued preaching.

The reverend has this week been suspended by his church.

The Co-op Bank markets itself as an ethical bank, avoiding investing in any company that has been shown to use sweat shops, fossil fuel extraction, genetic engineering and animal testing and its customers choose to become Co-op members thereby indirectly having some ownership of the bank and earning a dividend. It has 4.6 million customers.





May 20 – A Romanian hacker serving a prison term for manipulating automated teller machines (ATMs) says he has invented a device that can make the world’s cash dispensers impregnable even to tech-savvy criminals.



Sydney conman De Angelis who

photoshopped pictures of himself

with famous people

gets 12 years’ jail

A Sydney conman who duped investors out of more than $8 million and pretended to be friends with celebrities like former US president Bill Clinton, has been jailed for a maximum of 12 years.
Liquor Gift Deliveries

Judge Richard Cogswell spent two hours sentencing Dimitri de Angelis in the NSW District Court on Friday as he detailed the extravagant lifestyle he had fabricated.

Justice Cogswell said de Angelis duped potential investors by showing photoshopped pictures of himself with famous people.

“The photographs depicted himself with no lesser persons than Her Majesty Queen Elizabeth II, His Holiness the Pope John Paul II, His Holiness the Dalai Lama, US presidents George Bush senior, George W Bush and Bill Clinton and Australian prime ministers John Howard and Kevin Rudd,” Justice Cogswell told the court.

“He represented to people that he owned fleets of luxury cars as well as mansions and luxurious homes in Sydney and Melbourne.

“Part of the proposition that he put to investors was that every one per cent in his company would be worth $6 million when the company went public.”

Justice Cogswell said de Angelis’s company was actually “in financial crisis” but he was “very skilled” at deceiving his victims.

De Angelis pleaded guilty to 16 fraud charges last year.

The former Qantas steward also rented Rolls-Royces, luxury holiday homes and offices to fool investors into thinking he was a wealthy businessman and that his recording company Emporium Music was a “foolproof scheme”.

The amazing Dimitri De Angelis and David Hasselloff.
Dimitri de Angelis and David Hasselhoff. Photo: Supplied

Those stung by de Angelis included Anne Keating, the sister of former prime minister Paul Keating, Sydney’s former deputy lord mayor Marcelle Hoff, experienced businessmen and lawyers.

Justice Cogswell said he acknowledged that Paris-born de Angelis might have narcissistic personally disorder and that he had had a tough childhood in France, having spent most of it in state care.

He will be eligible for parole in May 2020.

Gold Company

Learn how easy it is to make fake passports and scam the rich into trusting you with thousands of dollars.

If the fraud industry were its own country, it would have the fifth strongest economy in the world, just ahead of the UK. Come and meet the fraudsters who’re making a killing from the fastest growing crime on Earth.

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Sourced & published by Henry Sapiecha




(Reuters) – Two Harvard teaching hospitals and a prominent Alzheimer’s disease researcher accused of using falsified data to obtain a government research grant are set to stand trial after a federal appeals court said this week that a lower court erred when it dismissed the case.

The lawsuit accuses Marilyn Albert, a former professor of psychiatry at Harvard Medical School, and Massachusetts General Hospital (MGH), where she was conducting research, of submitting a grant application based on manipulated data.

The data showed results from a trial were scientifically significant when in fact they were not, according to the lawsuit.

Brigham and Women’s Hospital, which collaborated on the research, is also a defendant in the case. The lawsuit was brought in 2006 under the False Claims Act, a 150-year-old federal law designed to recover government funds appropriated through fraud.

This is the first time a lawsuit dealing with alleged scientific fraud has been allowed to progress to trial under the False Claims Act, according to Michael Kohn, a lawyer with Kohn, Kohn & Colapinto in Washington, D.C.

Kohn represents the whistle-blower in the case, Kenneth Jones, a former statistician at Massachusetts General Hospital, who filed suit in 2006 claiming the defendants violated the act by including false statements in a $15 million grant application to the National Institutes of Health (NIH).

The case was dismissed in the lower court three days before it was due to go to trial. Barring settlement, a new trial could begin later this year in U.S. District Court in Boston, Kohn said.

If the defendants are found guilty, they could pay as much as $45 million to the U.S. government. By law, whistle-blowers in such cases receive 15 percent to 30 percent of funds recovered.

Albert, who is now director of the Division of Cognitive Neuroscience at Johns Hopkins University School of Medicine, declined to comment except to say in an email: “I am confident that there was no misconduct involved.”

Both hospitals said they are confident the researchers acted appropriately and according to the highest standards of scientific integrity.

“While it is disappointing that additional time and resources will have to be devoted to defending the institution and its investigators, the MGH remains confident that the resolution of the case will show that the allegations are without merit,” Massachusetts General said in a statement.

Brigham and Women’s responded with an identical statement.


Albert’s research was part of an ongoing investigation into the structure of the brain as it progresses toward Alzheimer’s disease. She specifically hoped to show that it might be possible to predict, years in advance, who might be destined to develop the disease, based on measurements taken over time of certain regions of the brain.

The results of the trial were published in the scientific journal Annals of Neurology in April 2000 and, according to Jones, proved extremely influential.

“The data appeared to confirm what had been suspected by some very prominent scientists, which is that Alzheimer’s disease is associated with decreased blood flow to the brain,” Jones said in an interview on Thursday. “The MRIs showed the volume of certain parts of the brain was decreasing in the people who were sick.”

There are multiple theories about the cause of Alzheimer’s disease.

In March 2001, Jones discovered what he believed to be anomalies in the research, specifically in data produced by one of the researchers, Ronald Killiany. The lawsuit alleges that Killiany revised his initial MRI measurements to prove the hypothesis of the trial.

Killiany, now an associate professor at Boston University School of Medicine, did not return a phone call or email seeking comment. Kohn said he was not named as a defendant. In retrospect, Kohn said, “He probably should have been.”

Jones took his concerns to Albert, who authorized an investigation into the matter by Killiany’s boss, Mark Moss. She declined to appoint an independent investigator, as requested by Jones, according to the lawsuit.

Moss concluded that Killiany’s second set of measurements was more accurate than the initial set. Albert accepted Moss’s conclusion and proceeded to apply for an NIH grant in November 2001, according to the lawsuit.

The defense argued before the appeals court that it would not have been unusual or inappropriate for Killiany to re-measure patient brain scans as long as he remained blind to the clinical status of the participants, and that this was a matter for scientific debate.

This argument was accepted when the case was initially heard by the lower court in the United States District Court for the District of Massachusetts. On that basis, it dismissed the case in October 2010. Kohn said the court ruled that scientific fraud could not be brought under the False Claims Act, since the case related to a scientific dispute, not fraud.

The appeals court, however, rejected the argument, saying, “We disagree that the creation of the data in question was necessarily a matter of scientific judgment.”

The court noted that the lower court’s determination “misses the point that the various results produced in this case were obtained by one scientist purportedly using the same protocol.”

The government’s Office of Research Integrity declined to say whether it is investigating the case.

Jones said he hopes the trial will shed light on the issue of scientific misconduct.

“My interest is in correcting the science and bringing this academic cheating to light,” he said, “and maybe sending a message saying, ‘You’re being watched, and you shouldn’t do it.'”

The case is: U.S. ex rel. Jones v. Brigham and Women’s Hospital, et al, 1st U.S. Circuit Court of Appeals, No: 10-2301.

(Editing by Michele Gershberg and Douglas Royalty)


A convicted fraudster who served jail time  was the mastermind behind an elaborate gambling scam which authorities say netted him between $6 million and $10 million.

Forged documents purported to be from the International Monetary Fund were part of the elaborate betting scam, a Gold Coast court has been told.

A magistrate today refused bail to Alan Ernest Davenport, 57, from the Gold Coast, who is facing five charges of intent to defraud, four of uttering false documents and one charge of dishonestly obtaining $200,000.

Prosecutor Rosanna Doolan told the Southport Magistrates Court that Davenport was the principal behind a sports arbitrage betting scheme which netted between $6 million and $10 million.

The scheme involved an invitation to put bets on all possible outcomes so a profit was made.

Between 600 and 700 people lost amounts between $10,000 and $400,000, police will allege.

“He used telemarketers to ring all around Australia and convince people to give money,” Ms Doolan said.

Clients were told the money was being bet on sports events all around the world.

“There is no evidence of betting ever taking place,” she said.

Clients were shown forged bank documents, including some purporting to be from the International Monetary Fund in Washington, the court heard.

“Essentially the entire process was a scam, a fraud of the highest, most deceptive nature,” the prosecutor said.

The court was told Davenport had previously served a jail sentence for two counts of fraud in Western Australia.

The latest behaviour showed “a repetitive, blatant and grossly dishonest disregard for the law”, Ms Doolan said.

The court was told Davenport had no income and no financial or family ties to keep him in Australia and might abscond if granted bail.

He also showed a capacity to interfere with witnesses and was at risk of being harmed by victims of the alleged scam.

“There is serious risk of retribution,” the prosecutor said.

Defence solicitor Grant Spedding said his client had been in Australia for 36 years and had shown no inclination to abscond even though he knew an 11-month police investigation could lead to him being charged.

Three co-accused will appear in court this afternoon.



Canadian detectives are hunting the masterminds of a sophisticated $C1.9 million ($1.95 million) bank fraud that netted the thieves 75 gold bars from Perth Mint.

The gold bars are uniquely Australian, stamped with jumping kangaroos and the Perth Mint’s swan logo, and were illegally bought last month from a Montreal financial institution.

The fraudsters have been shopping the bars around Canadian jewellery stores and metal industries in an attempt to either sell or melt the stolen treasure, Toronto police said.

Only one of the 75 10-ounce bars has been recovered, while two arrests have been made.

Toronto Police have released photos of the Perth Mint gold bars to help the public easily identify the stolen booty.

“The bars are so unique we hope anyone who is approached to purchase or melt the gold will contact us,” Detective Ruth Moran, of Toronto Police’s financial crimes unit, said.

“We know people have tried to sell or melt them on at least three occasions.”

The fraudsters managed to pull off the theft by illegally obtaining a draft from a Toronto bank to obtain the $C1.9 million. They then bought the 75 Perth Mint gold bars, 19 one-kilogram gold bars and two 100-gram gold bars.

Detective Moran said two men have been charged with possessing the bars, Thevarajah Thambipillai, 55, and Senthuran Kanapathipillai, 32, but the search continues for alleged accomplices.

“One of them had one of the bars in his possession at the time of his arrest and that’s the bar we have,” Detective Moran said.

“The other man was arrested with possession but we were unable to recover the bars he had.”

The Canadian Bankers Association is offering a reward of up to $C50,000 ($50,850) for any public information that leads to the arrest, conviction and recovery of the gold bars.

A former stockbroker is charged for 16 fraud offences in allegedly fleecing $8.8 million from overseas clients.

The Australian Securities and Investments Commission claims Jonathan Kur hid trading losses he accrued on three overseas client accounts while working as a stockbroker at Hogan and Partners Stockbrokers.

He illegally provided advice on options trading and dealing in options trading to several overseas-based clients between May 2005 and December 2008, ASIC claims.

An 18-month investigation led to Mr Kur being charged with 16 counts of fraud and one of dishonestly using his position as a stockbroker.

In Perth Magistrate’s Court last week, Mr Kur pleaded not guilty to the 16 fraud charges and guilty to the dishonesty charge.

He was bailed for $50,000 and ordered to surrender his passport.

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