Occupational therapist Rehana Memon given six year prison sentence for $500,000 NDIS rort

A medical therapist who made a fortune from a “sophisticated” fraud scheme against the NDIS has received a tough jail sentence.

An occupational therapist who made half a million dollars from a “sophisticated” fraud scheme against the National Disability Insurance Agency has been given a six-year jail sentence.

Rehana Memon rorted the system with the help of a small number of participants and their representatives, who were also colluding to misrepresent the value of the services provided through allegedly falsifying reports and overcharging for services using NDIS funds.

The therapist, in her 40s and based in Western Sydney, was found guilty of 22 counts of obtaining financial advantage by deception.

She was sentenced to six years in prison, with a non-parole period of four years.

A previous court hearing revealed that Memon was a single mum of two, and had received in total $8m from the NDIS for her services.

John Dardo, integrity chief at the National Disability Insurance Agency, which runs the $42 billion scheme, revealed at senates estimates this week that NDIS participants, unrelated to Memon’s case, were being taken by providers to ATMs and withdrawing cash to spend on drugs including heroin and ice, alcohol, prostitutes, holidays and new cars.

He said that more than $2 billion a year was being rorted from the system, which supports 640,000 people with a disability.

Sydney woman Rehana Memon has been jailed for her part in a “sophisticated” fraud against the NDIS. Pictured: Police and NDIA staff present he was arrested in 2020, where some of assets were restrained following a multi-agency investigation. Supplied image

Mr Dardo said people were spending thousands of taxpayers money on thing they shouldn’t.

“Examples just in the last week: a $20,000 holiday, a $10,000 holiday,” Mr Dardo said.

In one case a participant bought a brand new $73,000 car and the money was processed overnight. Mr Dardo said that fortunately they understood they should not have done that and were willing to repay the money. Others, when approached, refuse to engage, he said.

Following Memon’s sentencing, Minister for the NDIS Bill Shorten said the Government is determined to weed out providers trying to use the NDIS to dishonestly feather their nest.

“This Government has made it clear a focus of ours is combating fraud against the NDIS and stamping out any dodgy operators,“ Minister Shorten said.

Sydney woman Rehana Memon was arrested in 2020 and charged with dishonestly obtaining $500,000 against the NDIS. Supplied image

“Not only did this individual get time behind bars, but she was also deregistered by the Australian Health Practitioner Regulation Agency.

“I know this case is a minority but let this be a signal, whether you’re an allied health professional or you work in another field supporting participants and you’re doing the wrong thing – it will only be a matter of time before it catches up with you.”

The number of tip-offs received by the National Disability Insurance Agency has skyrocketed, with the agency receiving 5,721 tip-offs in the March quarter – a significant increase compared to the 4,658 tip-offs received for the same quarter in 2022–23.

In addition to the $126 million over four years to establish the Fraud Fusion Taskforce, the Australian Government announced a further investment of $83.9 million for the Crack Down on Fraud program.

The Government said the agency has dramatically increased its ability to detect and prevent a range of fraudulent and non-compliant claims by providers, including detecting and preventing inappropriate claims before they are paid.

Originally published as Occupational therapist Rehana Memon given six year prison sentence for $500,000 NDIS rort