Criminal, civil and administrative penalties for white collar crime

Submission 110

30th March, 2016

Senate Standing Committee on Economics.
PO Box 6100
Parliament House
Canberra. ACT 2600
Economics.sen@aph.gov.au
Senate Inquiry into Penalties for White Collar Crime: Terms of Reference (b) and (d)
The inconsistencies and inadequacies of current criminal, civil and administrative penalties for
corporate and financial misconduct or white-collar crime, with particular reference to:
a.
b.
c.
d.

evidentiary standards across various acts and instruments;

the use and duration of custodial sentences;
the use and duration of banning orders;
the value of fine and other monetary penalties, particularly in proportion to the
amount of wrongful gains;
e. the availability and use of mechanisms to recover wrongful gains;
f. penalties used in other countries, particularly members of the Organisation for
Economic Co-operation and Development [OECD]; and
g. any other relevant matters.
My intention of this submission is to draw attention to certain aspects of the operation of white
collar crime, based on my experience and research into Australias exploding white collar crime and
the methods adopted by the operators of this largely hidden scourge.
Is this problem due to the exploitation of the existing regulations by the proponents? Is it due to non
adherence of the existing regulation, or is it that the current regulations are inadequate to the
extent that anyone qualified or unqualified can practice within the financial sector? Is it due to, or
because of underfinanced institutions such as ASIC the ATO the FOS and Police creating an
environment in which it becomes too costly in money and time, or just too hard to take appropriate
action because of the system that allows it to flourish.
It is a serious problem for Australia and for victims of banks, money lenders, financial advisers,
crooked lawyers, accountants, business advisors, receivers, liquidators, property valuers etc. It
seems that these operators appear to be protected by the law or lack of authoritative action under
the law.
The heartache, trauma, loss of dignity, loss of property, loss of the home, loss of business, the
humiliation inflicted by these exploiters, are a blight and a disgrace that the current system allows to
exist almost unabated.
Regarding Banks:
Banks as public companies enjoy an exclusive and privileged position in Australia.
It seems that when bank crimes are eventually exposed, the bank pays a fine and promises to
change its Corporate Culture. That is the level of punishment. A fine and a promise!

Criminal, civil and administrative penalties for white collar crime

Submission 110

The bank increases its advertising campaign which quickly disguises the crime with very little public
condemnation.
The bank doesnt break the law, those within break the law, and if found guilty of breaking the law,
all associated with this act, ie executives, the ceo and directors should bear responsibility. The
effects of bank misdemeanours are devastating for victims in many ways. The axe should apply not
only to the individual perpetrators of the crime within the bank but all bank officers involved.
It is not acceptable that an individual is able to break the law or the process of bank business
without someone else knowing.
Those responsible and found guilty should face a gaol sentence. Fines on a Bank are futile for an
organisation declaring profits of billions of dollars. Fines are nothing more than a nudge to these
huge corporate conglomerates.
Punishing the directors and those involved with goal time plus hefty fines for the corporation would
be a deterrent for the perpetrator and force the directors to act in a proper manner as corporate
directors undertaking their fiduciary duties.
I have had firsthand experience of bank duplicity when the National Australia Bank of Australia
Chatswood branch manager
foreclosed on our home of 30 years.
Re; Finance Brokers, Business Advisers.
An example of either non compliance or lack of legislated compliance relates to this person Mr Ian
Lazar, formally Ian Rogut. He trades under different company names but mostly as a company
named Commercial Mortgage Trade Pty Ltd. Mr Lazar is presently on bail with many charges
pending. He has been in business for over 20 years. The question asked by his victims and even in
certain circles of the lower level finance sector of society is how is it that this person is able to own
and run this type of business for over20 years. Even after a public examination and judgment
declaring that he did not have a licence to practice as a lender (he would use the financial service
licence of other companies without their knowledge) Justice Black: Declared that he was unqualified
to practice financial consultant and included many other examples of his illegal activities. However
the very next day Mr Lazar continued in business.
Court
Supreme Court of New South Wales
Division

Equity

List

Corporations List

Registry

Sydney

Case number
2011/102873
I am aware of many of his victims who have suffered loss of homes and businesses and stripped of a
normal life forever. Families whose property had been valued by a Lazar associate and a Lazar
lawyer, promise of a loan, Lazar caveat on the property, then takeover of the property.
On another occasion I met a gentleman who approached Mr Lazar for a short term loan to increase
capital only to lose his business and home to Lazar.
Lazar have nefarious cohorts in many areas who share in the distribution of misappropriated funds
directly and indirectly.
Herewith I point out a side effect of White Colour Crime of a person allowed to operate in the world
of finance under the present system of governance.

Criminal, civil and administrative penalties for white collar crime

Submission 110

During a visit to the office of Lazar he noticed that I had an American Express Centurion Black Card.
Lazar asked to show the card to his assistant in the adjoining office. Lazar took the card and
returned it a minute or two later. On receipt of my monthly AMEX account there appeared 10
transactions on that same day totalling $84000 payable to Northside Storage Pty Ltd. Upon
investigation I discovered that Northside Storage Pty Limited was a company I had never heard of
but was a storage facility leased by Lazar from
. My complaints to AMEX did not
enlighten me as they could not explain why the charges did not have my signature, which was
required at that time, or that it was unusual to have 10 equal debits in the one day to one
merchant. Lazar explained that it was a mistake and that he would straighten the matter out with a
friend of his at AMEX. He then recommended that I speak to a particular person at AMEX who said
that the matter was being attended to. Without going into more detail this matter brought about
the loss of my account which automatically had a detrimental effect on my credit rating. I therefore
assumed that Mr Lazar had a plant within AMEX to allow this illegal transaction to proceed. I have
never had any business dealings with Northside Storage Pty Limited however that company was the
beneficiary of $84k from my account at Amex.
I discovered that Northside Storage was a warehouse for repossessed vehicles and for other devious
reasons leased by Mr Lazar and managed by his nephew, Josh Rogers..
There are many suffering people who have been duped and had their lives taken away by the actions
of this person. His network is widespread and the same familiar names appear over and over.
Lazar has been in business of fraud and asset acquisition for 20 years without police investigation of
any sort until recently. Lazar was exposed as a Lender of Last Resort on a Four Corners expos in
2014. This followed a meeting with Senator John Williams and Mr Colin Dyson, former head of the
NSW Fraud Department.
Whether it is a civil or criminal matter there is nowhere for victims to report that which has been
perpetrated upon them. A.S.I.C ?? Legal Aid ?? Law Society?? Financial Ombudsman Service ??
How does one who has lost everything pay for a lawyer? And even if a victim does get to court, the
court is presented with copies of documents often forged; bearing very well prepared forged
signatures, etc including submissions from Receivers / Liquidators which are accepted by the court
without question. The fact is the victim has nowhere to go. If one is self represented in court, then
that is another chapter to the drama. There is little understanding or sympathy given by a
magistrate or judge towards a person who is self represented. The likes of Mr Lazar is funded and
supported by his legal team. The victim receives a sentence of living a life devastated and
bewildered by the injustice of it all. There is no avenue for review.. There is a Judge or Magistrate
and bring the gavel down! Next case!
Would the committee consider including a review of licensing for Receivers and Liquidators and also
include punishment for supporting or indulging in activities contrary to the licence chapter. It is my
experience that affidavits of Receivers and Liquidators are automatically accepted by the court?
Receivers / Liquidators (so called officers of the court) are a law unto themselves and do well
gathering exorbitant fees. Creditors are in many cases the last consideration. It is also very simple
for a receiver to participate in the financial network of the white collar criminal.
I wish your committee an outcome based on compassion, wisdom, a need to rid our community of
White Collar Crime which has untold cost to our society. It is important for all victims of white collar
crime to see that the perpetrators of the crimes, having stripped them of dignity and possessions
including their homes, and business, forcing bankruptcy etc to receive just punishment and hopefully
thwart the operators and spread of this most damaging crime.

Criminal, civil and administrative penalties for white collar crime

Submission 110

Kevin Jacobsen OAM.