Essays on Fraud Prevention and Investigation - Raymond Widders, Milan Rakic Case Study

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The paper "Fraud Prevention and Investigation - Raymond Widders, Milan Rakic" is an outstanding example of a business case study. Raymond Widders, aged 62, was involved in a fraud scheme of gaining a financial advantage through deception, which made him get a social security benefit overpayment of $169,390.89 (Commonwealth Director of Public Prosecutions (CPDD), 2017a). The fraud scheme entailed Raymond Widders making a claim for Centrelink benefits using two names – Raymond John Widders, which was his birth name, and Ray John Ireland, which is the name by which he was known (CPDD, 2017a).

Centrelink is a programme that is run by the Australian Government and delivers a variety of social services and payments for retirees, carers, families, the unemployed, people with disabilities, parents and other special-interest groups. The key party involved in the fraud was Widders himself. Widders deliberately misrepresented his real circumstances to Centrelink in order to claim social security income support payments using the two names (CPDD, 2017a). The fraud took place over a period of nine years. Widders got the Newstart Allowance payments using his name as Widders between December 2002 and January 2005, and also from May 2006 onwards.

The same person also received Disability Support Payments using the other name, Ray John Ireland, during the same period (CPDD, 2017a). CPDD (2017a) notes that the fraud committed by Widders was uncovered as follows. Centrelink launched investigations regarding Widder’ s eligibility for the social support payments after receiving information from a member of the public in April 2014. Private investigators, as well as the Australian Federal Police, carried out a surveillance of Widders’ house at the start of 2015, and a search warrant was enforced at his home.

The search revealed bank statements, correspondence and identification cards bearing the two names of Ireland and Widders. Investigators also obtained photographic cards that showed pictures of the same person but with the different names of Ireland and Widders. This evidence added to the fact that bank statements showed that the suspect had withdrawn all the pension funds paid in the name of Ireland on the same day that the payment was made. He had also made arrangements for the payment to Widders to be immediately transferred to a home loan account.

These activities were suspicious in relation to the use of social support payments by any beneficiary (CPDD, 2017a). According to CPDD (2017a), the final outcome of Raymond Widders’ case was as follows. Widders was charged in court on two counts of getting a financial advantage from the Commonwealth through deception in contravention of section 134.2(1) of the Crimes Act  1914.  He pleaded guilty and was sentenced to three years in jail on December 13, 2016 (CPDD, 2017a). CPDD has not indicated whether the money that had been overpaid to Widders ($169,390.89) was recovered by Centrelink after the sentencing process. Milan Rakic’ s fraud case Location: Queensland, Australia The fraud scheme by Milan Rakic involved the man using a fake identity, or deception, to claim welfare payments from the Australian Government through its social welfare programme known as Centrelink (CPDD, 2017b; Frost, 2015).

Milan Rakic, a 70-year-old man, made claims for welfare payments using two names – his adopted name of Gordon Megson, as well as his original name as Milan Rakic.

References

Commonwealth Director of Public Prosecutions (CPDD). (2017a). Raymond Widders. Retrieved from https://www.cdpp.gov.au/case-reports/raymond-widders

Computer fraudster who stole £393,000 from students using bogus loans website is jailed (2013, December 14). Evening Standard. Retrieved from http://www.standard.co.uk/news/crime/computer-fraudster-who-stole-393000-from-students-using-bogus-loans-website-is-jailed-9004860.html

Cooper, C. (2015, September 22). Man who duped people in online scams jailed for almost five years. The Age. Retrieved from http://www.theage.com.au/victoria/man-who-duped-people-in-online-scams-jailed-for-almost-five-years-20150922-gjsaqc.html

CPDD. (2017b). Milan Rakic. Retrieved from https://www.cdpp.gov.au/case-reports/milan-rakic

CPDD. (2017c). Jason Gilby. Retrieved from https://www.cdpp.gov.au/case-reports/jason-gilby

Frost, P. (2015, September 10). Centrelink fraudster jailed for claiming $200k in fake name. Daily Mercury. Retrieved from https://www.dailymercury.com.au/news/centrelink-fraudster-jailed-claiming-200k-fake-nam/2770268/

Johnstone, K., Gramling, A., & Rittenberg, L. E. (2016). Auditing: A risk based-approach to conducting a quality audit (10th ed.). Boston, MA: Cengage Learning.

Man found guilty of internet scams, credit card fraud has sentence cut on appeal (2016. February 22). ABC News. Retrieved from http://www.abc.net.au/news/2016-02-22/online-fraudster-has-sentenced-reduced-on-appeal/7190914

Man jailed for phishing scam that targeted UK students to steal £1.5m (2013, December 14). The Guardian. Retrieved from https://www.theguardian.com/uk-news/2013/dec/14/man-jailed-phishing-scam-uk-students-olajide-onikoyi

'Remorseful' Melbourne credit card fraudster successfully appeals against sentence (2016. February 22). The Guardian. Retrieved from https://www.theguardian.com/australia-news/2016/feb/22/remorseful-melbourne-credit-card-fraudster-successfully-appeals-sentence

Scamwatch. (n.d.). Phishing. Retrieved from https://www.scamwatch.gov.au/types-of-scams/unexpected-money

Streff, K. (2007). Information security in banking. In H.R. Rao, M. Gupta & S. J. Upadhyaya (Eds.), Managing information assurance in financial services (pp. 59-91). Hershey, PA: IGI Publishing.

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