Three people jailed in NSW over $5.8 million NDIS, ATO fraud
Three people have been jailed for their roles in a multimillion-dollar fraud against the National Disability Insurance Scheme and the Australian Taxation Office, with authorities hoping the result will send a “strong message” to would-be fraudsters.
Australian Federal Police allegedly identified a syndicate operating across three companies to defraud the NDIS of more than $5.8 million in false claims, and of making false claims for GST refunds to the ATO.
The AFP began a joint operation in 2020 with the National Disability Insurance Agency, AUSTRAC and Services Australia to investigate several suspected fraudulent NDIS providers based in western Sydney.
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By continuing you agree to our Terms and Privacy Policy.“Some of the claims obtained NDIS funding for people who did not have a disability by providing false medical reports,” a joint statement read.
“The syndicate then accessed this funding for personal financial gain.”
During search warrants as part of the investigation, the AFP seized 8kg of gold bullion from a vault at a secure premises, worth about $600,000, about $600,000 in cash from multiple residential properties and $635,176 in cryptocurrency. They also seized three vehicles, including a BMW M3, Audi Q7 and Porsche Cayenne with a combined value of about $250,000, and a significant amount of jewellery.
More than $2 million in suspected tainted assets were seized during the search warrants, excluding the cash and funds from alleged syndicate members’ bank accounts.
The trio, from NSW, faced the Sydney Central District Court on Thursday.
A 38-year-old Lidcombe man was sentenced to six years and six months’ imprisonment, with a non-parole period of four years. He pleaded guilty to two counts of conspiring to dishonestly obtain a gain from the Commonwealth and one count of dealing with property reasonably suspected of being proceeds of crime.
A 41-year-old Ryde man was sentenced to two years and 11 months’ imprisonment. He will serve 12 months’ imprisonment before being released on a good behaviour bond. He pleaded guilty to one count of conspiring to dishonestly obtain a gain from the Commonwealth.
A 33-year-old Lakemba woman was sentenced to three years and five months’ imprisonment, with a non-parole period of 17 months. She had pleaded guilty to one count of conspiring to dishonestly obtain a gain from the Commonwealth.
The two men and a woman have also been ordered to repay the Commonwealth a combined total of more than $575,700.
ATO Acting Deputy Commissioner Jade Hawkins said the outcome should serve as a warning to those who deliberately try to defraud the government for their own personal gain.
“If you think you can live a lavish lifestyle from illegal gains, it’s only a matter of time before you’re caught,” A/Deputy Commissioner Hawkins said.
AFP Superintendent Kristie Cressy said the AFP was committed to protecting the integrity of vital support services for those who needed them most.
“The outcome of this investigation sends a strong message to criminals that fraud against the NDIS will not be tolerated,” Superintendent Kristie Cressy said.
Two other men were sentenced over the fraudulent behaviour in 2022. A South Granville man, 27, pleaded guilty to dealing in proceeds of crime worth $1,000 or more and dealing in proceeds of crime worth $10,000 or more. On 14 September 2022, he was sentenced by the Sydney Downing Centre Local Court to three months’ imprisonment for one offence and six months’ imprisonment for the other, with the sentences to be served by way of an intensive corrections order.
A 26-year-old Merrylands man also pleaded guilty to dealing in proceeds of crime worth $1,000,000 or more. On 16 December 2022, he was sentenced to three years’ imprisonment, with a non-parole period of 18 months.
A Chester Hill man, 36, remains before the courts and is next scheduled to appear in court in March, 2025.
NDIA CEO Rebecca Falkingham said these verdicts reflected the hard work being done across many government agencies to put a stop to the defrauding of the NDIS, and ensuring every NDIS dollar went towards participant outcomes.
“People with disability and their families deserve to be protected from exploitation, and this is just another step in ensuring those expectations are met,” she said.
