Cairns Children’s Centre worker Erin Kate Waters convicted of $178k Medicare fraud

A medical receptionist who began her 13-month, $178,000 Medicare fraud spree after experiencing a domestic violence incident will not have to spend a day behind bars. Find out why.

A WOMAN convicted of a $178,558 Medicare fraud will not spend a day in prison after a Cairns District Court Judge cited her mental health issues as a moderating factor and suspended her sentence, placing her on a good behaviour bond for two years.

Erin Kate Waters, 27, pleaded guilty to obtaining financial advantage by deception.

The court heard that while working as a receptionist at Cairns Children’s Clinic, she claimed 351 Medicare rebates for services that were never provided, transferring the rebate funds into her own account.

On three occasions, she diverted rebate funds that should have gone into the parents of patients’ accounts to her own account.

The offending took place over a 13-month period.

Erin Waters was convicted of fraud in Cairns District Court on Wednesday. Picture: Nuno Avendano

In a lengthy address, Commonwealth prosecutor Daniel Whitmore said the activity was deliberately designed to avoid detection and she was “motivated by greed rather than need”.

He said an offer of repayment by her parents – the court heard her stepfather had cashed in his superannuation to come up with $178,558 which was yet to be paid – was not a demonstration of contrition.

“It was a sustained course of dishonest conduct, buying things to make her feel better, there is no explanation of where the $178,000 went,” Mr Whitmore said.

He said a report provided by a Cairns psychologist did not explain how her psychological condition contributed to her offending and there was no direct connection.

Mr Whitmore noted there was a possible diagnosis of borderline personality disorder (BPD), with a formal assessment suggested by the psychologist.

Defence solicitor Phillip Bovey said Miss Waters felt neglected and alienated by her mother as a child because she had a brother with an intellectual impairment who required much of her mother’s time, and she carried feelings of neglect and resentment and still perceived her family was not supportive.

Cairns Children’s Centre receptionist Erin Waters made 355 fraudulent Medicare rebate transactions, depositing funds into her own account, over a 13 month period.

A dozen members of her family were present in the courtroom.

Mr Bovey said she had “significant cognitive and perceptual distortions” believing she was not well supported by family.

He said Miss Waters had been diagnosed with major depressive disorder and panic disorder and although she believed she had PTSD, it had not been diagnosed.

Mr Bovey said Miss Waters started offending three months after a domestic violence incident in which she was spat on and told “I could kill you with one punch” and feared for her life.

He said impulsive behaviour such as excessive spending was a feature of BPD – but Mr Whitmore countered that taking the money was planned and premeditated and not impulsive.

Judge Dean Morzone, QC, said there was no other appropriate option but a term of imprisonment, but that would aggravate her mental state.

He said her offending “entered into the realm of greed and self-indulgence” but must be looked at in the context of mental health issues.

He sentenced Miss Waters, who cried for much of the sentencing, to two years and nine months in prison but released her immediately on a $1000 recognisance and two year good behaviour bond.

Originally published as Cairns Children’s Centre worker Erin Kate Waters convicted of $178k Medicare fraud