Organised crime gangs scamming up to $1.45b from the NDIS

The Australian Crime and Intelligence Commission says organised crime networks are stealing as much as $1.45 billion from the NDIS each year.

Fraudsters are ripping off the NDIS by as much as $1.45 billion a year, with the disability scheme now the target of ­organised crime gangs, according to intelligence provided to the federal government.

The Australian Crime and Intelligence Commission has warned the incoming government that as much as 5 per cent of the $29 billion scheme is being stolen annually, with some individual crime gangs ripping off tens of millions.

The ACIC warned the scheme has been hit by similar scams to those allegedly used by the Western Sydney family day care syndicates that led to the arrest of dozens in 2019.

Another family callously conned people with disabilities.

The similarities have led to concerns the NDIS is now being targeted by gangs ­involved in other serious criminal activity.

NDIS Minister Bill Shorten wants to crack down on criminals rorting the disability scheme. Picture: Alison Wynd

The scams include: falsified service bookings for clients by ghosts who don’t do any work; inflated invoices charged to the scheme; and invoices charged to NDIS participants without their knowledge by gangs using stolen personal information.

National Disability Insurance Scheme Minister Bill Shorten said some of the offending could be opportunistic, but some required a high level of organisation.

“Serious crime entities need to know we are putting them on notice that the NDIS will not be a target of opportunity,” Mr Shorten said.

“This type of crime where calculating criminal networks rob dollars from the safety net and the most needy Australians is simply despicable.”

Mr Shorten said he was considering all options, from bolstering law enforcement personnel within the agency to greater intelligence sharing.

“I am committed to cracking down on crime in the NDIS,” he said. “I wish the Morrison government had spent as much energy on chasing crooks as they did cutting funding for kids with autism.”

Alan Rifai was arrested by Australian Federal Police in May 2019 over defrauding the NDIS. Picture: NSW Police

Four people with alleged links to Middle Eastern crime gangs were charged in Western Sydney last week with ­allegedly defrauding the NDIS of more than $2 million.

The Sydney arrests came after the AFP raided four ­addresses in the city’s west on Wednesday, following an ­investigation by a joint task force between police, NDIS and Services Australia.

Meanwhile a disability worker allegedly made more than 500 false claims against the NDIS, a court has heard.

Jonathan Nguyen, 36, appeared in Brisbane Magistrates Court, charged with a Commonwealth offence of obtaining property by deception.

The charge alleges the man did something with the intention of dishonestly causing a loss to a Commonwealth ­entity.

A police prosecutor ­opposed bail because of the seriousness of the offence and substantial amount of money allegedly obtained by the man while he was a disability ­service provider.

The prosecutor told the court the worker made 569 false claims against the NDIS, totalling $314,000.

The court was told the ­evidence against the worker was strong, with the money having been paid into his bank ­account.

Magistrate Colin Strofield granted bail on seven conditions, including that the man was not to provide any service for the NDIS.