Welfare cheat John Gerald McNally jailed for $250,000 pension fraud
A WELFARE cheat and former soldier who cheated taxpayers of almost $250,000 to feed an alcohol and gambling addiction has been jailed.
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A FORMER soldier who defrauded taxpayers of almost $250,000 by double-dipping welfare payments has been jailed.
John Gerald McNally, 69, was locked up for at least 2 ½ years after pleading guilty to claiming two government benefits under different names over 18 years.
The welfare cheat was overpaid a staggering $243,875.26 between August 1997 and December 2015.
He has been ordered to pay it all back.
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The deception saw him hold two Centrelink accounts: one under John McNally with his birth date, January 22, 1949, and another under Gerald McNally with a bogus date of birth, January 22, 1957.
He used one to claim the disability support pension, while the other he received a New Start allowance until he turned 65 and it became the aged pension.
The extra funds were not used to live the high life, but instead McNally used it to feed his alcohol and gambling addiction.
County Court Judge Wendy Wilmoth said it was serious offending over a long period of time that required “careful planning”.
“In effect you created a new identity,” Judge Wilmoth said.
“You filled in a form stating in effect that you were not claiming any other pension, that you were not known by any other name, and you answered other questions incorrectly knowing they were incorrect.”
Sentencing him to four years jail, with a non-parole period of 2 ½ years, Judge Wilmoth said his offending “demonstrates an attitude of entitlement” and he is yet to show any sign of remorse.
She said general deterrence was paramount as “the loss is to public moneys”.
The scam was uncovered during an Australian Taxation Office data-match audit in March 2015.
Nine months later, McNally was arrested and charged after police raided his home and found documents with both names on them, as well as his diary where he listed Medicare numbers under both names.
The December search also uncovered a suitcase with $54,000 cash inside.
The court heard he handed the cash over to pay off his debt; and is now having $50 taken from his fortnightly pension in an effort to repay the remaining $190,356.
McNally was born in Ireland, but immigrated to Australia with his mother and sister in 1961.
Aged 18, he joined the Australian Army but after suffering serious injuries in an accident he was deemed medically unfit and discharged in 1971.