Three fraudsters sentenced for $5.8 million fraud against NDIS and ATO

Publisher
Australian Broadcasting Corporation
Date published
October 2024

Relevant impacts:  Human impact, Government outcomes impact, Financial impact, Business impact.

Three people based in Sydney have been sentenced to multiple years imprisonment for their roles in defrauding $5.8 million from both the National Disability Insurance Scheme (NDIS) and Australian Taxation Office (ATO).

The 3 were among those arrested under Operation Pegasus, an operation to investigate suspected fraudulent NDIS providers based in Sydney. Police alleged they had identified a syndicate operating across 3 companies to defraud both the NDIS and ATO through false claims, including fraudulent medical reports.

Facing a Sydney Central District Court earlier on Thursday, the 3 received prison sentences of 6 years and 6 months, 2 years and 11 months, and 3 years and 5 months, respectively. All 3 have also been ordered to repay the Commonwealth a combined figure of more than $575,700.

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Related fraudster personas

The Fabricator

The Fabricator invents or produces something that is false to dishonestly gain personal benefits.

The Organised

The Organised are groups which use a combination of methods in planned, coordinated and sophisticated ways to dishonestly gain benefits.

The Deceiver

The Deceiver makes others believe something that is not true to dishonestly gain personal benefits.

Related countermeasures

Collaborate with strategic partners

Collaborate with strategic partners such as other government entities, committees, working groups and taskforces. This allows you to share capability, information and intelligence and to prevent and disrupt fraud.

Clear public communication

Providing clear statements and communications on entity practices and responses can help prevent staff and clients falling victim to scams or slipping into non-compliance, while discouraging fraudulent or corrupt activities.

Deterrence messaging

Providing clear statements and communications on entity practices to detect and respond to fraud can discourage fraudulent or corrupt activities. Staff and clients will be less able to rationalise or justify fraudulent or corrupt conduct when informed of the outcomes of fraud.

Clear and specific eligibility requirements

Clear eligibility requirements and only approve requests or claims that meet the criteria. This can include internal requests for staff access to systems or information.

Authenticate identity

Authenticate customer or third-party identities during each interaction to confirm the person owns the identity record they are trying to access.

Verify information

Verify any requests or claim information you receive with an independent and credible source.

Complaints handling

Allow clients, staff and third parties to lodge complaints about actions or decisions they disagree with. This may identify fraud or corruption as a cause for complaints, such as a failure to receive an expected payment.

Audits or reviews

Internal or external audits or reviews evaluate the process, purpose and outcome of activities. Clients, public officials or contractors can take advantage of weaknesses in government programs and systems to commit fraud, act corruptly, and avoid exposure.

Coordinate disruption

Coordinate disruption activities across multiple programs or entities to strengthen processes and identify serious and organised criminals targeting multiple programs. It can also include referrals to law enforcement agencies for those groups that reach the threshold for complex criminal investigations.

Investigate fraud

 Investigate fraud in line with the Australian Government Investigation Standards (AGIS).

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