Mawadha Mahmoud: Childcare con dodges prison time

A woman who scammed her way to nearly $5000 in childcare subsidies to fund retail therapy learned her fate in Wollongong Local Court this week.

A now Fairfield woman has avoided jail time after being convicted of fraudulently claiming more than $4500 in childcare subsidies for care that never occurred.

Mawadha Mahmoud appeared in Wollongong Local Court on Tuesday where Magistrate Gabriel Fleming sentenced her to an 11-month intensive corrections order after pleading guilty to the charge of dishonestly intending to cause a loss.

Mahmoud’s deceitful behaviour was exposed by Strike Force Mercury, which was set up in July 2018, which found she had manipulated timesheets and completed false monthly inspection reports to claim the Commonwealth cash.

Convicted fraudster Mawadha Mahmoud outside Wollongong Local Court on Tuesday. Picture: Dylan Arvela

Mahmoud, a refugee who escaped war-torn Syria and Iraq before arriving in Australia in 2013, is one of more than 50 charged following investigations from Strike Force Mercury into Red Roses Family Day Care.

Police alleging the syndicate illegally claimed around $4 million in payments over 10 months.

In the case of Mahmoud, who was arrested and charged in May 2019, investigators covertly watched her behaviour over a six-month period between October 2018 and March 2019 when she was under the guise of working for Red Roses from her Cabbage Tree Lane address in Fairy Meadow.

In that period, Mahmoud logged 263 child care sessions which saw her swindle more than $4800 in taxpayer funds.

Investigators observed just one instance of Mahmoud actually providing childcare, but in that case, on March 5, 2019, she claimed subsidies for six children when she was only caring for four.

Mahmoud reported a total of 2575 sessions of care, which on the basis they occurred, would have seen a total childcare subsidy of $47,508.

The prosecution admitted they couldn’t confirm beyond reasonable the sessions, outside of the 263 they observed, were fraudulent, however, Magistrate Fleming said some consideration to that upper limit was made in reaching her judgment.

An “ashamed” Mawadha Mahmoud covered her face as she left Wollongong Local Court on Tuesday. Picture: Dylan Arvela

“This is a very serious offence,” Magistrate Fleming scolded.

“It goes to the heart of the honesty system, we all know how difficult it is to find child care… The system relies on honesty because we don’t want the government to have to check everyone’s bank account.

“This is truly shameful and affects everyone in the community.”

Mahmoud’s lawyer Mohamed Khan said his client was “ashamed” of her actions and said she had developed PTSD as a result of her past.

Mr Khan told that Mahmoud “self-medicated” through “retail therapy” which spurred on her fraudulent behaviour.

In addition to the ICO, Mahmoud will have to undertake 70 hours of community service and pay a fine of $4500.