NDIS fraudsters slapped with combined 12-year prison sentence
A multimillion-dollar fraud against the Tax Office and the National Disability Insurance Scheme has landed three people from NSW behind bars.
A trio from New South Wales were sentenced to a combined 12 years and 10 months’ imprisonment for their part in a $5.8 million scandal against the ATO and National Disability Insurance Scheme/Agency (NDIS/A).
In a release from the Australian Federal Police (AFP), ATO, NDIA, AUSTRAC and Services Australia, it was stated the two men and women were ordered to repay the Commonwealth a combined total of more than $575,700.
AFP Superintendent Kristie Cressy said the AFP was committed to protecting the integrity of vital support services for those who needed it.
“The outcome of this investigation sends a strong message to criminals that fraud against the NDIS will not be tolerated,” she said.
“We will continue to work closely alongside our partner agencies to combat fraud and support those who genuinely rely on these services.”
The trio faced the Sydney Central District Court last Thursday where all three pleaded guilty to the committed fraud against the Commonwealth contrary to section 135.4(1) of the Criminal Code 1995.
A 38-year-old Lidcombe man was sentenced to six years and six months behind bars, with a non-parole period of four years.
The man pleaded guilty to two counts of conspiring to obtain a gain from the ATO and NDIA and one count of dealing with property reasonably suspected of being proceeds of crime.
The 33-year-old Lakemba woman in the trio was sentenced to three years and five months imprisonment, with a non-parole period of 17 months.
The woman pleaded guilty to one count of conspiring to dishonestly gain from the NDIA.
The third man, a 41-year-old from Ryde, was sentenced to two years and 11 months imprisonment and would serve 12 months before he would be released on a good behaviour bond.
The Ryde man pleaded guilty to one count of conspiring to dishonestly gain from the ATO.
All three suspects were identified as part of Operation Pegasus, launched by the AFP in December 2020 in partnership with the NDIA, AUSTRAC and Services Australia.
The operation was launched to investigate several suspected fraudulent NDIS providers based in Western Sydney.
The ATO joined the investigation in 2021 when subsequent investigations found simultaneous fraud on the ATO that surrounded the exploitation of the GST regime.
According to the joint statement, operational activity across Sydney by the AFP, forensic specialists and partner agency members resulted in the arrests of five men and one woman.
Police said the syndicate operated across three companies to defraud the NDIS of millions of dollars in false claims. They also made false claims for GST refunds to the ATO.
According to police, it was found the syndicate had accessed funding for personal financial gain when they did not have a disability.
During the searches, police found and seized $600,00 work of gold bullion, $600,00 cash, $635,176 in cryptocurrency, a substantial amount of jewellery, a BMW M3, an Audi Q7 and a Porsche Cayenne.
Overall, more than $2 million in suspected tainted assets were seized during the warrants.
NDIA CEO Rebecca Falkingham said the verdicts reflected the work done across the government agencies to put a stop to the fraud.
“People with disabilities and their families deserve to be protected from exploitation, and this is just another step in ensuring those expectations are met,” Falkingham said.
“The FFT, co-led by the NDIA and Services Australia, continues to increase the NDIA’s capability to detect, prevent and respond to any potential fraudulent and/or criminal activity against the NDIS.”
“This multi-agency approach is leading to increased sharing of information and an enhanced ability to prevent criminals from exploiting Australians living with disability.”
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