Punishment handed down after Covid business relief fund fraud

The gangs that terrorised Sydney’s streets also led a syndicate of fraudsters who plundered over $1 million from a coronavirus business fund. Now the law has caught up with them.

A kitchen hand, a pizza boy and a desperate housewife were among a group of 23 people who plundered more than $1.3m by posing as struggling businesses at the height of the pandemic.

The gangs that terrorised Sydney’s streets led a syndicate that even lured a mentally ill man into their trap.

Under their direction, the mostly cleanskin people from western Sydney applied for thousands in coronavirus business relief funds with fake claims that their companies were going under.

While most knew they were working for a syndicate, many had no idea who was behind it.

Ty Fullagar, 22, filled out six Service NSW application forms pretending to be a struggling business, neglecting to tell authorities he was a pizza chef from Chester Hill.

Five weeks later, $62,000 was in a bank account under his name that he provided to the government, making it all the easier to track him down.

On Thursday Bankstown Local Court heard he mostly spent the money on drugs.

His lawyer admitted in court when Fullagar was sentenced for dishonestly gaining a financial advantage that he “was always going to be found out”.

Hannah Maubayed, 50, was handed a 12 month intensive corrections order.

Magistrate Glenn Walsh said, “this was a scheme brought in by the state government to help those in need … he did the opposite of that”.

Fullagar was handed an 18-month jail term and will be eligible for parole after serving nine months in prison.

Others like kitchen hand Hannah Maubayed, 50, were snared into the web of criminals by their own bad luck.

At the time Maubayed pretended to be running a struggling business, she too had lost her job of 15 years as the outbreak swept Sydney.

She received $10,500 of Covid relief funds but in court offered to pay back $5000.

Maubayed was warned the only reason she wasn’t jailed was because she had a sick father to take care of.

She was given a one-year corrections order after pleading guilty to dishonestly gaining a financial advantage.

Mohamed Haddad agrees he participated in a criminal group but denies making fake applications.

The underworld figures running the scam would have money dispensed back to them, occasionally, by unwitting participants like 65-year-old Ibrahim Ghabrieh.

Ghabrieh has recently been diagnosed with schizophrenia, the court heard, and was preyed upon by the criminals to deal with $10,500 of funds they scammed.

The pensioner had no idea the money had come from fraudulent relief applications but was “sought out” by the head of the syndicate.

He was handed a two-year community corrections order and ordered to pay back the money after pleading guilty to gaining a financial advantage by deception.

Mum of seven Diana Hawat, 43, said she was forced into opening four bank accounts for her husband Ibrahim. Her lawyer told the court her husband was abusive and she only agreed to open the accounts to avoid more issues in the home.

She was convicted and handed an 18-month community corrections order after pleading guilty to participating in a criminal group.

Some like Mohamed Haddad, denied they benefited from money they allegedly lied to obtain.

The 40-year-old agreed he participated in a criminal group but denies making fake applications under a different name to obtain $42,000.

The new head of the Financial Crimes Squad warned there is nowhere to hide.

Speaking after the group faced their fate on Thursday Superintendent Gordon Arbinja said it was a “despicable” fraud against the most vulnerable in the community.

“It takes away from the people who really needed that money,” Supt Arbinja said.

“They obviously thought there was an element of anonymity but there are always ways we can track you.”

Got a news tip? Email [e-mail]