Jail time for NDIS grift
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Three people have been jailed over a $5.8 million NDIS fraud.
The three NSW residents have been sentenced to a combined 12 years and 10 months in prison for a $5.8 million fraud targeting the National Disability Insurance Scheme (NDIS) and the Australian Taxation Office (ATO).
The Sydney Downing District Court handed down the sentences this week, a result of a major multi-agency investigation into the exploitation of funds intended for Australians with disabilities.
The offenders - a 38-year-old man from Lidcombe, a 41-year-old man from Ryde, and a 33-year-old woman from Lakemba - were also ordered to repay over $575,700.
Their sentences ranged from 2 years and 11 months to six years and six months.
The arrests were the culmination of Operation Pegasus, an Australian Federal Police (AFP) investigation launched in December 2020, which uncovered fraudulent NDIS providers in western Sydney.
In 2021, the ATO joined the operation after discovering similar fraud involving GST claims.
During search warrants across Sydney in April 2021, police seized over $2 million in assets, including 8 kg of gold bullion worth around $600,000, about $600,000 in cash, and $635,176 in cryptocurrency.
Luxury vehicles, including a BMW M3, Audi Q7, and Porsche Cayenne, as well as significant jewellery, were among other items seized.
Authorities allege the group operated three companies that lodged false NDIS and GST claims, obtaining funding by submitting fraudulent medical reports for people without disabilities, then redirecting the money for personal gain.
This investigation has already led to convictions.
In 2022, a South Granville man, 27, received an intensive corrections order for dealing in proceeds of crime, while a 26-year-old from Merrylands received a three-year sentence for laundering over $1 million. Another individual from Chester Hill is due back in court in March 2025.
“The outcome of this investigation sends a strong message to criminals that fraud against the NDIS will not be tolerated,” AFP Superintendent Kristie Cressy said.
AUSTRAC’s Anthony Helmond and ATO’s Acting Deputy Commissioner Jade Hawkins said inter-agency collaboration was needed to “follow the money” and target criminals misusing taxpayer resources.
“If you think you can live a lavish lifestyle from illegal gains, it’s only a matter of time before you’re caught,” Hawkins said.