Investigating shell companies

Criminals use shell companies to launder money, evade taxes and perpetuate all manner of fraud. The author defines and dissects shell companies to help CFEs investigate this threat that can hit uncomfortable close to home….

In many instances, one shell company isn’t enough — fraudsters need a network. Dozens of shells, nominee directors, addresses and fake shareholders might be required to conceal a scheme or criminal plot. Big-time criminal conspirators will utilize shell incorporators to do the heavy lifting and help create a corporate web of disguise that can perplex and confuse the best of investigators.

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Shell games: Investigating shell companies and understanding their roles in international fraud

by Ryan C. Hubbs, CFE, CIA, PHR, CCSA. Fraud Magazine July/August 2014


Clean slate hides 232 convictions

An Aucklander has concealed 232 convictions from potential employers under legislation that lets Kiwis hide their criminal history if they’ve had a clean record for seven years.

More than 115,000 New Zealand criminals have been allowed to hide convictions including fraud, bestiality and indecent assault from prospective employers under the Clean Slate Act, which came in a decade ago.

The act allows people with less serious convictions to have them concealed if they meet the right criteria.

Figures released by the Ministry of Justice under the Official Information Act show one Auckland criminal has had the luxury of concealing their former crimes, despite having racked up a staggering 232 convictions — the highest in the country.

The person’s identity and type of offending can’t be revealed.

Among the convictions concealed nationwide were assault on a child with a weapon, drink-driving causing death, burglary and indecent assault.

Convictions for tax fraud and bestiality were also hidden [Read more...]

High rate of chlamydia in teens

Staggeringly high” rates of chlamydia have been reported among New Zealand teenage girls.

A report by Environmental Science and Research (ESR) was the first time data was collated from every laboratory in the country on people tested, as well as the number of new sexually transmitted infection (STI) cases found.

It found 5064 cases of chlamydia per 100,000 population in teenage girls aged 15 and over.

This was a “staggeringly high” rate, the report authors said.

Because only six per cent of teenage boys were tested for STIs, compared to 35 per cent of teenage girls, the real number of men with chlamydia was likely higher. [Read more...]

David Ross – convicted fraudster: loses jail term appeal

David Ross, the man behind the single biggest fraud in New Zealand’s history, has lost his bid to have his “unreasonably crushing” minimum jail term reduced.

In November Ross, 64, was jailed for 10 years and 10 months for operating a fraudulent scheme in which private investors lost about $115 million.

His company, Ross Asset Management, fleeced at least 700 investors through portfolios in which they thought they had more than $380m.

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Society pleased NZ may soon ratify UN Convention Against Corruption

The Society for Promotion of Community Standards Inc is delighted that the Organised Crime and Anti-corruption Bill tabled in the House today by the Minister of Justice, Hon. Judith Collins, which will crack down on corruption, organised crime and bribery in New Zealand, would allow New Zealand, once it is passed, to ratify the United Nations Convention Against Corruption.

The Society notes that The Integrity Plus 2013 New Zealand National Integrity System Assessment, a landmark report that was released by Transparency International New Zealand (TINZ) on International Anti-Corruption Day, 9 December 2013 “reveals that serious and urgent action is needed to protect and extend integrity in New Zealand. Recent incidents and investigations of corruption, and increasing public concern, provide a compelling case for a more pro-active approach to these issues” (see SPCS is a bronze-level member of TINZ. [Read more...]