Three individuals from New South Wales have been sentenced to a combined 12 years and 10 months in prison for orchestrating a multimillion-dollar fraud scheme targeting both the National Disability Insurance Scheme (NDIS) and the Australian Taxation Office (ATO).
The two men and one woman were also ordered to repay over $575,700 to the Commonwealth.
The trio appeared in Sydney’s Central District Court on Thursday, 31 October 2024, where each faced sentencing:
- A 38-year-old man from Lidcombe received a six-year, six-month sentence with a non-parole period of four years. He had admitted guilt to two counts of conspiracy to defraud the Commonwealth (both the ATO and NDIA) and one count of dealing with proceeds of crime.
- A 41-year-old man from Ryde was sentenced to two years and eleven months, serving a minimum of twelve months before release on a good behaviour bond, after pleading guilty to conspiracy to defraud the ATO.
- A 33-year-old woman from Lakemba received a three-year, five-month sentence, with a non-parole period of 17 months, for her role in defrauding the NDIA.
The Australian Federal Police (AFP) launched Operation Pegasus in December 2020 in collaboration with the NDIA, AUSTRAC, and Services Australia. Initial investigations targeted suspected fraudulent NDIS providers in western Sydney, later uncovering GST fraud involving false claims for ATO refunds.
Following a coordinated raid in April 2021, AFP officers, forensic specialists, and partner agencies made six arrests, seizing over $2 million in assets linked to the fraud, including $600,000 in gold bullion, $600,000 in cash, and $635,176 in cryptocurrency.
Further seized assets included three luxury vehicles (BMW M3, Audi Q7, and Porsche Cayenne) valued at about $250,000, as well as jewellery.
Two additional individuals were sentenced in 2022 for their involvement:
- A 27-year-old South Granville man received a total of nine months’ imprisonment for dealing in proceeds of crime, served through an intensive corrections order.
- A 26-year-old Merrylands man was sentenced to three years in prison for laundering proceeds of over $1 million.
Another suspect, a 36-year-old man from Chester Hill, is still awaiting trial, with a court appearance set for March 2025.
AFP Superintendent Kristie Cressy expressed the AFP’s commitment to safeguarding essential support services, stating,
“The outcome of this investigation sends a strong message to criminals that fraud against the NDIS will not be tolerated.”
NDIA CEO Rebecca Falkingham highlighted the agency’s dedication to protecting NDIS funds, noting that the Fraud Fusion Taskforce (FFT), co-led by the NDIA and Services Australia, has significantly strengthened fraud detection, with 21 government agencies working together to prevent misuse of NDIS resources.
“This multi-agency approach is leading to increased sharing of information and an enhanced ability to prevent criminals from exploiting Australians living with disability.”
The joint operation was bolstered by AUSTRAC’s financial intelligence capabilities. Acting National Manager for Law Enforcement, Anthony Helmond, said AUSTRAC’s role in tracking illicit funds was instrumental in securing the arrests.
“This outcome should serve as a warning to those who deliberately try to defraud the government for their own personal gain,” ATO Acting Deputy Commissioner Jade Hawkins added.
The case was prosecuted by the Commonwealth Office of the Director of Public Prosecutions following a referral from the AFP.
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