Three people have been jailed for more than 12 years combined over a multimillion-dollar fraud of the National Disability Insurance Scheme and the Australian Tax Office.
The Australian Federal Police said it uncovered eight kilograms of gold bullion worth about $600,000, about the same amount in cash, and more than $630,000 in cryptocurrency when it busted the syndicate.
Officers seized three vehicles — a BMW M3, an Audi Q7 and a Porsche Cayenne — with a combined value of about $250,000, and a significant amount of jewellery.
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The AFP launched Operation Pegasus in December 2020 to probe suspected fraudulent NDIS providers based in western Sydney.
It said at the same time investigators discovered the ATO was also being defrauded.
The AFP said the syndicate was operating across three companies to defraud the NDIS of millions of dollars using false claims, and also making false claims of GST refunds to the ATO.
Some of the claims used false medical reports to claim NDIS funding for people who did not have a disability. The syndicate then used the funding for personal gain, the AFP said.
Five men and one woman were arrested in April 2021.
Yesterday, two of the men and the woman were sentenced in Sydney Central District Court and ordered to repay the Commonwealth more than $575,000.
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A Lidcombe man, 38, was sentenced to six years and six months’ imprisonment, with a non-parole period of four years after pleading 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 Ryde man, 41, was sentenced to two years and 11 months’ imprisonment, to be released on a good behaviour bond after 12 months. A Lakemba woman, 33, was sentenced to three years and five months’ imprisonment, with a non-parole period of 17 months.
They both pleaded guilty to one count of conspiring to dishonestly obtain a gain from the Commonwealth.
Two other men were sentenced in 2022 and a Chester Hill man, 36, remains before the courts.
National Disability Insurance Agency chief executive Rebecca Falkingham said more would be done to “detect, prevent and respond” to fraud.
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“With 21 government agencies working together, the [Fraud Fusion Taskforce] has investigated hundreds of cases and billions in NDIS funding since being established in November, 2022,” she said.
Australian financial intelligence unit AUSTRAC has specialist analysts who “follow the money” to identify fraud, said Anthony Helmond, the agency’s acting national manager in law enforcement and industry.
“In this case, we were able to identify the extent of the fraudulent NDIS claims made by these heartless criminals, and assist police in securing these arrests.”
ATO acting deputy commissioner Jade Hawkins said the court convictions were a warning.
“If you think you can live a lavish lifestyle from illegal gains, it’s only a matter of time before you’re caught.”
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