Australia: Commonwealth Bank staff to face court over alleged $76m fraud


February 4 2016

Two Commonwealth Bank employees are reportedly due to face court after they allegedly masterminded a $76 million Ponzi scheme that management allowed to go on for five years. The staff are said to have received secret commissions for their role in the alleged fraud, which was ignored by management at Australia’s biggest lender, the Sydney Morning Herald reports.
The pair are also accused of siphoning money from clients’ accounts without their knowledge or consent.

CBA documents and emails obtained by Melbourne property developer Nick Fotopoulos, who lost more than $5 million and has launched a civil action against the bank, reveal the extent of the bank’s involvement in the alleged fraud. The documents reveal that the bank knew about the alleged fraud as far back as 2007 but did not report the pair to police until 2011, the Sydney Morning Herald says.
A CBA spokesperson said the bank has “zero tolerance to bribery, corruption” but declined to comment on the specific allegations while the matter was before the courts.