South Sudanese refugees’ childcare scam ‘disappointing'

Victorian judge says it’s “disappointing” to see so many South Sudanese refugees before the court over a childcare scam.

Two South Sudanese refugees have been jailed for their part in a childcare fraud.

A Victorian judge said it was “disappointing” to see so many South Sudanese refugees before the court over a childcare subsidy scam as he sentenced the two ringleaders to four years in jail.

Rosa Riak and her son Kuol Deng were sentenced in the ­Victorian County Court in Melbourne over a conspiracy to ­defraud the federal Education ­Department over false childcare subsidy claims made through various childcare businesses.

Riak’s daughter, Achai Deng, 25, was sentenced to 18 months but released through a recognisance order because of her youth, status as a masters student and her volunteer work in Melbourne’s South Sudanese community.

Judge Michael McInerney said seven other educators connected to Riak and Deng’s companies had been sentenced and fined over the scheme, and all were South Sudanese refugees.

“To have so many people from that country (Sudan) engaged in an attack of the revenue of this country is most disappointing,” he said, “given the thousands, if not millions, of dollars spent to help their plight.”

In previous plea hearings, Riak and her children had told the court they were “ashamed” and feared their actions would affect the reputation of South Sudanese people in Australia.

The Dengs moved to Australia from a Kenyan refugee camp in 2004 and became Australian citizens in 2006. Riak’s husband, Mony Dhang, is an army veteran who still lives in Sudan.

Justice McInerney referred to the recent media coverage of South Sudanese youth, which he called “unjustified”, in his decision to sentence the family trio.

“Your community has undergone unjustified vilification in ­recent times … given the large media attention this sentencing will get, you have added to that trauma that your community must endure.”

The trio pleaded guilty last month to using their business, The Deng Group, and other childcare businesses to make false claims to the commonwealth, particularly through claims of a grandparent childcare benefit.

One business bought by the Dengs in 2015 claimed $45,000 over 12 months previously. After the Dengs were in charge, the business claimed $6.2 million over 12 months.

Justice McInerney said receipts showed more than $950,000 had definitely been falsely claimed “but it seems likely the actual figure is much higher”.

The court heard that claims were made for children who were never cared for, and by educators who were actually interstate or overseas at the time.

Australian Federal Police caught the Dengs and Riak through doing audits of their businesses and via intercepted phone calls.

Justice McInerney said Deng had labelled investigators as­ ­“stupid”. “There is a classic ­recording of Mr Deng referring to the stupidity of investigators and he indicated they wouldn’t be smart enough to catch them.”

Justice McInerney also said he did not understand why the ­Department of Education did not cross-reference Deng’s name as he and his sister established various childcare businesses after a previous one had been closed down.