Cocoon SDA Care, NDIS provider banned: What we know

Cocoon SDA Care is currently under investigation by government agencies after being slapped with a 30-day ban. Hundreds of NDIS clients are affected. This is what we know.

Cocoon SDA Care, whose parent company is Horizon SolSolutions, is currently under investigation by government agencies.

It was handed a 30-day ban by the disability watchdog from providing some NDIS services due to welfare concerns, leaving hundreds of vulnerable people looking for a new provider, and some needing to find new homes.

This is what we know:

What is Cocoon SDA Care?

The business provides specialist disability accommodation and services for NDIS participants. It is headquartered in Queensland, but operates in every state and territory. Its parent company Horizon SolSolutions owes the ATO almost $10m. The website claims it has 600 properties and 2400 staff.

What’s happened?

The disability watchdog has placed a temporary 30-day ban on Horizon SolSolutions preventing it from providing some NDIS services. As a result up to 438 vulnerable people have had to find new providers and in some cases new homes.

Who are the key players?

Muhammad Latif is the sole director of Horizon SolSolutions. The Sydney based businessman appeared on his doorstep in his pyjamas to answer questions about the company, denying any wrongdoing.

Muhammad Latif, sole director of NDIS provider Horizon Solutions. Picture: Julian Andrews

Zaffar Kahn is the self-styled corporate strategist for Cocoon SDA Care and flies around the world drumming up investment opportunities. He’s a former bankrupt and taxi driver, who has his own TikTok and YouTube accounts where he gives business advice to his thousands of followers. He is based in Queensland.

NDIS firm Cocoon SDA Care’s co-founder Zaffar Khan. Picture: Kyle Rode

Pranay Kumar was the executive director of operations at Cocoon SDA Care and up until this week he was featured on the ‘team’ page of Cocoon’s website. Last month he took ownership of a new business called Crescent Respite Facility.

Cocoon SDA' executive director and Crescent Respite owner Pranay Kumar (left) and Cocoon's managing director and owner Muhammad Latif. Picture: Facebook

The allegations

Investors

Mum and dad investors as well as people from overseas have bought into Cocoon franchises, paying for new specialist disability accommodation in return for a ‘fixed’ income of up to $130,000. However, many claim their properties were never tenanted - and so they received no income, leaving some in financial stress.

Cocoon SDA Care’s website. Picture: Supplied

Work permits

There are claims that some overseas investors were offered pre-approved Australian work permits and jobs in specialist disability homes in return for funding.

Staff

Some staff across the country said they have not been paid for weeks, while others have claimed they are missing superannuation payments. The Fair Work Commission is investigating. Horizon SolSolutions has blamed the agency running the NDIS for withholding payments for services rendered while it investigates the company.

Have they been reported before?

The NDIS watchdog and Bill Shorten’s office knew of a bombshell dossier about troubled disability business Cocoon SDA Care in 2023 and yet the company was allowed to continue looking after some of Australia’s most vulnerable people for almost two years.

Tanya-Lee Quinn, was CEO of Cocoon SDA Care for less than a week and who tried to raise the alarm about the financial and compliance irregularities back in 2023. Picture: Jane Dempster

Whistleblower Tanya-Lee Quinn, who was employed as CEO of Cocoon SDA Care for less than a week in August 2023 alleges she was hired to “fix” the financial mess of the business.

However, after she raised a long list of concerns with the company, Ms Quinn claims she was escorted off the premises, but not before downloading explosive evidence first.

What are clients being told?

Cocoon SDA Care is attempting to transfer NDIS participants to a company owned by one of its former senior executives. Participants who have to change providers because of Cocoon’s temporary suspension by the scheme’s watchdog have received letters from the company telling them to transfer to a new provider called Crescent Respite Facility.

Originally published as Cocoon SDA Care, NDIS provider banned: What we know