$50m NDIS fraud investigation: Fraud Fusion Taskforce, police raid alleged criminal gangs
Organised crime gangs have allegedly stolen up to $50m from vulnerable Australians through elaborate NDIS fraud schemes, triggering nationwide police raids.
EXCLUSIVE: Investigators have smashed a number of alleged organised criminal gangs suspected of up to $50 million of NDIS fraud.
The Government’s Fraud Fusion Taskforce, along with state police forces have raided a series of homes and businesses across South Australia and NSW in the last week, as part of three separate investigations.
Other federal police led-raids involving fraud against other departments were undertaken in Western Australia and Queensland.
In total more than 43 terabytes of data was seized by forensic investigators across a total of six operations.
The groups are suspected of orchestrating large-scale fraud against government payment programs, including the $52 billion a year disability scheme, which is struggling to rein in ballooning costs.
Following ACIC intelligence, one fraud taskforce investigation – codenamed Operation Banksia – concerns an organised crime group operating in Western Sydney and Adelaide suspected to have claimed more than $40 million in NDIS funding.
It is believed the syndicate has submitted hundreds of claims for services for people who never received them. Some of the claims were for participants who were in prison at the time.
Police said inquiries into the syndicate remain ongoing with charges anticipated in the future.
The NDIS watchdog has also issued a notice of suspension and 12 notices of intention to refuse or revoke registration and to ban a number of individuals and providers.
A second investigation - named Operation Howell - involves hundreds more fraudulent claims costing the taxpayer $7 million. It is alleged criminals again submitted hundreds of fraudulent claims for services not provided to participants.
A third investigation, Operation Daewoo, allegedly involves $1.2 million in NDIS claims. It is alleged that a syndicate stole from participants’ plans.
Senator Jenny McAllister, Minister for the NDIS, said she was backing the Fraud Fusion Taskforce to track down the criminals who think they can get away with “stealing from people with a disability.”
“This should serve as a warning to those who seek to steal public money that is meant to support NDIS participants,” Minister McAllister said.
The FFT harnesses specialist intelligence from the National Disability Insurance Agency (NDIA), Services Australia, the Australian Federal Police and other agencies.
Australian Federal Police Commander Jason Kennedy said organised crime groups seeking to defraud government programs designed to help those most in need are on notice.
“The AFP works closely with its partners in the Fraud Fusion Taskforce to create a force multiplier and stop targeted fraud that ultimately steals the money of honest and hard-working Australians,” Commander Kennedy said.
“Members of our community have allegedly been targeted, exploited and threatened by groups looking to fill their own pockets and steal public funds set aside for Australians who are reliant on this support.
“The AFP will not stop in its pursuit of these groups who chop and change companies in a cynical effort to hide their criminal behaviour from law enforcement.”
The NDIS fraud investigations were triggered by multi-agency intelligence and tip-offs, highlighting the importance of collaboration and community vigilance.
Evidence collected during these searches is being assessed for potential referral for criminal prosecution.
Previously, it has been claimed that more than a billion dollars of the NDIS budget is going to criminals defrauding the system.
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Originally published as $50m NDIS fraud investigation: Fraud Fusion Taskforce, police raid alleged criminal gangs
