Alleged fraud at Moriah
#BREAKING NSW Police have spoken of the "astronomical" alleged fraud at Moriah College by its former financial controller Gus Nosti, estimated at $7.4 million over 12 years. "It’s very disappointing for the school that they employed somebody for such a long time who has taken advantage of the money," police say.Read more: https://ajn.timesofisrael.com/charges-laid-over-alleged-moriah-fraud-case/Video: Courtesy Nine Newsפורסם על ידי The Australian Jewish News ב- יום חמישי, 7 במאי 2020
MORIAH College’s former financial controller Augustine “Gus” Nosti could spend up to 10 years behind bars after being charged over an elaborate $7.4 million alleged fraud scheme at the school, which police described as “quite astronomical”.
In October last year, detectives, with assistance from the Australian Taxation Office, commenced an investigation into the alleged misappropriation of funds by Nosti.
In a letter to parents in March, Moriah president Stephen Jankelowitz said forensic investigations had established that the alleged fraud was “effected through various means, and involved multiple financial institutions over a 14-year period”, adding that the assets of Nosti, his wife and sister-in-law “remain frozen and conditions apply to his overseas travel”.
Last Thursday, following a large-scale fraud investigation, Nosti was arrested at Waverley Police Station and subsequently charged with five counts of dishonestly obtaining financial advantage by deception.
Police will allege in court the 57-year-old redirected 402 transactions from the college into his personal bank accounts between 2004 and 2016, dishonestly obtaining more than $7.4 million as a result.
“They ranged from $2000 to $240,000,” eastern suburbs command crime manager Inspector Gretchen Atkins said of the alleged transactions.
“They were quite astronomical.”
Atkins said as the school’s “trusted” financial controller, Nosti, was allegedly able to “bury” the transactions.
Atkins confirmed Nosti was the only person police were investigating over the matter.
In a statement, Moriah principal Rabbi Yehoshua Smukler said, “We thank the police for their assistance with this matter. We will continue to cooperate with the police as required.”
The maximum penalty for a person found guilty of dishonestly obtaining financial advantage by deception is 10 years’ imprisonment.
Jankelowitz stated earlier this year steps were being taken to “improve the college’s controls and processes” in the wake of the discovery.
“There is no indication that any of the funds received from our donors and managed by the Moriah Foundation or the trustees of the Building Fund have been impacted,” Jankelowitz said.
“We reiterate our assurance to parents, staff members and students that there will be no disruption to school activity and our business of teaching and learning.”
Nosti was granted strict conditional bail and will appear in Waverley Local Court on July 7.