Scamming schoolboy lives the high life thanks to $200,000 crime spree

[HipChick]

http://www.theage.com.au/national/scamming-schoolboy-lives-the-high-life-thanks-to-200000-crime-spree-20100123-mrqv.html

CORPORATE regulators have launched an inquiry after a year 8 student engineered a $200,000 money-laundering scam involving the sale of non-existent items on eBay and accounts he opened at most of Australia's major banks.

The teenager, who is now 17 and cannot be named for legal reasons, obtained dozens of bank accounts and debit cards to facilitate a three-year crime spree in which he indulged his penchant for luxury brands including Louis Vuitton and Versace. When his mother begged the banks to ban him, they ignored her or refused to discuss the matter due to privacy laws.

''They allowed a juvenile to launder excessive amounts of cash through accounts without scrutiny,'' she said. ''He's still treated as a valued customer.''

In 2007, the mother unearthed her 14-year-old son's diary listing thousands of dollars in frauds involving non-existent laptops and mobile phones sold on eBay. Successful bidders deposited money into the boy's accounts but never received any goods.

On some days, the boy raked in more than $6000. In turn, he began living the high life. He booked a $4300-a-night Sydney penthouse, hired limousines and flew friends interstate on weekend romps.

His mother recalled: ''In 2007, my son strolled into the Commonwealth Bank with his birth certificate and a friend over the age of 18. When that friend claimed to be his legal guardian, the bank gave him an account. It was the beginning of everything. That one account paved the way for him to open all the others.''

Westpac, Bank of Queensland, ANZ, Credit Union Australia, NAB and Hume Building Society have since opened cheque and debit accounts under the boy's name.

''My son has another scam going with debit cards,'' she said. ''He puts a small amount of cash on a debit card then makes large withdrawals of up to $1500. The flaw is that the banks let you go $1500 overdrawn before they close the account. Once that happens, he opens another.''

The mother said she realised the only way to stop her son was to contact all the banks where he had accounts.

''I told them my child was involved in a major ongoing credit card fraud and expressed concern about the ease with which he obtained unlimited accounts without my consultation. The Commonwealth Bank was the only institution to even bother to respond.''

In 2008, the mother went to the police. The teen was charged with eight counts of fraud. While on bail, he reoffended a further 10 times.

To this day, he has served only one week in detention.

The woman says her son continues to live the high life.

''Sometimes it's day spas or lavish shopping sprees. He returns with Louis Vuitton luggage, Versace clothes, Prada watches. What my son needs is a psychologist, and for … the banks to accept liability.''

ASIC has said the case is receiving ''careful consideration''.

[monmouth]

1. Of course the banks will accept him, he's like one of their own..Catch

me if you can is the boy's mantra...

[Viking12]

2. Indeed. That boy has a bright future in the financial sector.

[monmouth]

3. Goldman Sachs hunting him down as we type...LOL...n/t