Alee Farmann and wife Lubna Hashimy avoid jail over mega child care fraud

A couple behind a “calculated” fraud in which they claimed nearly $90k in subsidies for child care that never took place have avoided jail time.

A Sydney couple who claimed nearly $90,000 in subsidies for child care never given have avoided jail after a court heard how they masterminded the elaborate fraud.

Alee Farmann, 53, and his 44-year-old wife, Lubna Hashimy, were sentenced in Downing Centre District Court over the scam relating to “Red Roses Family Day Care” in Fairfield.

The court heard the couple, who migrated to Australia from Iran more than 20 years ago, engaged in “deliberate and calculated conduct” by creating an appearance of legitimate services.

Agreed facts reveal Red Roses opened in August 2013 to provide childcare across southwest Sydney.

Alee Farmann (r). Picture: Monique Harmer

Farmann and Hashimy became involved in the company in July 2016 when the former became a co-director with the pre-existing director and the latter became a “supervisor”.

Under government regulations, the company had to submit reports about care sessions.

But the court heard how the couple and their co-offenders began knowingly reporting sessions that never took place in order to fraudulently gain government subsidies.

During sentencing remarks, Judge Jane Culver explained Farnan’s role as director was to “authorise educators to remain (at the centre) for sessions of care when he knew they weren’t caring for children”.

“He took steps to conceal the fraud … by directing Red Roses’ office staff to make the care location look like a classroom suitable for children (and) ordering items from Office Works to give the appearance that the location was suitable for children”.

Lubna Hashimy.

Judge Culver said he encouraged his educators to “have evidence” ready, “including photos of children,” in case he was subject to scrutiny from officials.

Over several months in 2018 and 2019, police found at least $85,000 of subsidies claimed through the business were fake, causing a significant loss to the Commonwealth.

Judge Culver said the true amount fraudulently gained was not known.

Explaining Hashimy’s role, Judge Culver said she “engaged in deliberate and calculated conduct … there is no evidence she acted at the direction or instigation of Mr Farmann”.

“(One time) Ms Hashimy signed a time sheet for Red Roses book … She had said there were seven children present but there were only four”.

Alee Farmann said he lost his “life, wife and health”. Picture: John Grainger

“There was a high degree of planning, motivated by financial gain, which only stopped due to the interception of police”.

The court heard the couple used the identities of their own children as well as those they knew as part of the scam.

Despite claiming otherwise, their children “never attended childcare,” Judge Culver said.

“Instead, their children were picked up and taken straight to school”.

“The crown is saying what the offenders did represents a flagrant disregard on the trust placed in them by this scheme for childcare subsidies”.

Roughly 40 people were arrested in a wider police investigation.

The pair were arrested along with some 40 others in 2019, accused of links to an alleged $4m wide-reaching syndicate involving several child care centres.

Many offenders have since been through the courts.

Both Farmann or Hashimy appeared to show “emerging insight” into their actions after first showing little remorse, Judge Culver said.

Recounting Hashimy’s apology letter, she said:

“I have let my country down … I am proud to be Australian and I am most ashamed … this is a painful event in my life that will stay in my heart, as it should. I’m so sorry I have done it”.

Meanwhile, Judge Culver said Farmann told police: “I have lost my wife, my life and my health” and apologised for wasting public money.

The child care sessions they claimed “never happened” Picture: iStock

Farmann initially pleaded not guilty to one count of aid, abet, counsel or procure an offence to dishonestly cause a loss and Hashimy pleaded not guilty to two counts of the same Commonwealth offence.

Both changed their pleas to guilty at the eleventh hour, just as a trial was due to start in late 2022. 

The maximum penalties for their crimes were 10 years in jail and/or a fine of $126,000.

But having been on bail since their arrest, they will unlikely spend any time in prison.

Hashimy was sentenced to an aggregate term of three years imprisonment, to be released immediately on a recognizance release order of the same length for the sum of $5,000.

Farmann was sentenced to 33 months imprisonment, also to be released upon entering into a recognizance release order for $5,000.

Under their orders, they must be of good behaviour and be supervised by community corrections.

Both were also given a pecuniary penalty of $15,000. The court heard the government had restrained all of their assets.

Judge Culver said her punishment would both protect the community and encourage rehabilitation, noting the Crown did not oppose the community-based sentences.