Syndicate faces court over alleged $10m NDIS fraud scam

Six people are accused of siphoning off millions of dollars from the National Disability Insurance Scheme to buy luxury items.

Australian Federal Police raids across Sydney seized more than $2 million worth of assets in relation to an alleged $10 million NDIS scam.

Six alleged members of a multimillion-dollar Western Sydney syndicate tried to fleece the National Disability Insurance Scheme to fund a high-life of flashy vehicles and ritzy jewellery, federal agents claim.

Eleven raids spearheaded by the Australian Federal Police across Sydney on Tuesday seized more than $2 million worth of assets, including eight kilograms of gold bullion, more than $600,000 in cryptocurrency, $600,000 in cash and three luxury vehicles including a BMW M3, Audi Q7 and Porsche Cayenne worth a combined $250,000.

Eight kilograms of gold bullion from a vault at a secure premises, worth approximately $600,000, was secured in the raids. Source: Australian Federal Police

The federal police and National Disability Insurance Agency will allege the syndicate claimed $10m from the NDIS since 2017 through three fraudulent NDIS providers, in what is believed to be the largest exploitation of the agency in its history.

Among the operations alleged by police is that the providers skimmed NDIS funding from genuine disabled users of the scheme without their knowledge, by providing inflated invoices to the NDIS for rebates.

In another scenario identified by the AFP, the NDIS providers were alleged to have worked with families or nominees of clients to exaggerate service user’s disabilities – before then pocketing the extra funding.

More than 100 AFP investigators, forensic specialists and partnering agency members took part in raids across Sydney. Source: Australian Federal Police

Mohammad Sallam, 34, of Lidcombe, Muath Sallam, 32, of Monterey, Noura Bader, 30, of Lidcombe, Gazwan Shahrouk, 24, of Granville, and Ahmed Moussa, 22, of Merrylands, appeared in Central Local Court on Wednesday via video link from the cells of Surry Hills police station as family members and friends watched on.

All were granted bail except Mohammad Sallam, whose lawyer Paul McGirr asked for an adjournment until May 6 when he will possibly go for bail.

Commonwealth prosecutors did not oppose the other four being released from custody but with strict conditions, including reporting daily to police stations near their homes.

The court was told Bader, a woman dressed in a headscarf, had a history of failing to comply with court orders.

Mr McGirr told the court that the fact sheet relating to the entire matter was “quite complex” and ran for more than 50 pages.

Pictured leaving Sydney Police Centre in Surry Hills is Gazwan Shahrouk, one of six people arrested in conjunction to a case of fraud involving the NDIS. Picture: Richard Dobson

Magistrate Clare Farnan adjourned the matters of the four given bail to June 16 for a mention because all of them were alleged to be part of the one enterprise together.

She warned those who got bail that they risked being taken back into custody if they ignored their conditions.

They must surrender their passports and cannot leave NSW.

Their bail conditions also state they are not to take part in any business or enterprise associated with the provision of services under the NDIS.

Muath Sallam, Shahrouk and Moussa also have a condition where they cannot access services which enable access to the acquisition or sale of cryptocurrency or gold bullion.

$10M NDIS Fraud Raids

Defence barrister Talal Krayem said his client was identified as Ahmed Moussa in court documents but as Noah Adel in the AFP’s fact sheet. He told the court it was the same person.

Court documents allege Moussa dealt with the proceeds of crime equal to or greater than $1,000,000.

Mohamad Sallam, Bader, and Muath Sallam dishonestly caused a loss to the NDIS, according to the documents.

Shahrouk, who was represented by solicitor Fadi Abbas, is accused of dealing with the proceeds of crime equal to or greater than $10,000.

A sixth person, a 37-year-old Frenchman from Ryde was arrested as a person of interest and charged with separate fraud offences to a value of $31,798.

Police will allege he is an associate of Mohammed Sallam and Bader and was also allegedly defrauding the NDIS.

The Frenchman was given police bail and is expected to appear before court at a later date.

Police allege that Mohammad Sallam and Bader operated two companies together, while Muath Sallam ran the third.

$10M NDIS Fraud Raids

Mohammed Sallam has been charged with causing a loss to the NDIA worth $1,986,942.59 as well as dishonestly causing a loss to the NDIA worth of $1,271,866 by enrolling participants into the NDIS using false documents and later claiming for services that police allege were not delivered to those participants.

Bader was charged with dishonestly causing a loss to the NDIA, in the sum of $1,271,866, as well as causing a loss to the NDIA of $1,986,942.59, by enrolling participants into the NDIS using false documents and later claiming for services that police allege were not delivered to those participants.

Police will allege they were known to each other, while Moussa was engaged to withdraw cash from approved claims on their behalf. He has been charged with dealing with proceeds of crime over $1m in value, with a total value of $2,197,050.00,

Muath Sallam was charged with causing a loss to the NDIA of $6,800 and attempting to cause a loss to the NDIA, totalling $60,346.75.

More than 100 AFP investigators, forensic specialists and partnering agency members took part in raids across Sydney. Source: Australian Federal Police

It’ll be further alleged Gazwan Shahrouk was paid a minimum of $40,000 to set up a bank account under his name which was used to make fraudulent NDIS claims from one of the companies. He was charged with dealing with two counts of proceeds of crime of over $10,000 in value.

AFP Commander Kirsty Schofield wouldn’t rule out further arrests as investigations continued, potentially including people with disability or their families who may have assisted the alleged fraud.

“Millions of dollars have allegedly been stolen by this criminal syndicate. Funds that have allegedly been spent on flashy vehicles when they could have been redirected to help other NDIS clients, like your mother, grandfather, sister or neighbour,” Cmdr Schofield said.

NDIA chief risk officer Mel Woodburn said the agency remained committed to preventing fraud against the NDIS.

“Fraud is a crime, and the agency will not tolerate the misuse of funds. One dollar fraudulently obtained is one dollar that isn’t received by those for whom it was intended – our participants,” Ms Woodburn said.