Three people have been jailed in New South Wales for their roles in a multimillion-dollar defrauding of the National Disability Insurance Scheme (NDIS), in a week NDIS Minister, the Hon. Bill Shorten MP announced further measures to crackdown on rorts.

The sentencing is the result of an investigation into several suspected fraudulent providers in western Sydney. The investigation, led by the Australian Federal Police in partnership with the National Disability Insurance Agency (NDIA), AUSTRAC and Services Australia, uncovered more than $5.8 million in fraud during the thorough investigation.

Two other men were sentenced to imprisonment in 2022 as part of the investigation.

Each of the three plead guilty to charges of dishonesty against the Commonwealth.

• A Lidcombe man, 38, who pleaded guilty to two counts of dishonesty obtaining a gain from the Commonwealth and one count of dealing with property reasonably suspected being proceeds of crime, was sentenced to 6 years and 6 months imprisonment, and a reparation order was made in the amount of $328,420.28 to be repaid to the Commonwealth.
• A Lakemba woman, 33, who pleaded guilty to one count of dishonesty obtaining a gain from the Commonwealth, was sentenced to 3 years and 5 months imprisonment, and a reparation order was made in the amount of $96,070.90 to be repaid to the Commonwealth.
• A Ryde man, 41, who pleaded guilty to one count of dishonestly obtaining a gain from the Commonwealth, was sentenced to 2 years and 11 months imprisonment, and a reparation order was made in the amount of $150,783.76 to be repaid to the Commonwealth.

Minister Shorten said the sentencings served as a strong reminder for crooks that if they think they can steal money intended for Australians who rely on it to live an ordinary life, they had better think again.

“We signalled a tougher crackdown on crime targeting world-first reforms to get the NDIS back on track and with more crooks now accountable for their actions through Operation Pegasus, we’re moving full-steam ahead,” he said.

“I don't think there's much lower in life than someone who rips off a person with a profound or severe disability, and someone who rips off a taxpayer.

“So, it’s a fantastic result to see the scams of these three individuals derailed while bringing them to justice for the almost $6 million they took from the Australians who need it most.”

Just this week, Minister Shorten announced the second part of NDIS legislation Getting it Back on Track Bill, which will significantly increase protections for Scheme participants and workers.

The proposed new law will radically strengthen the deterrence and compliance powers for the NDIS Quality and Safeguards Commission to take action to lift the quality of NDIS supports and safety for participants.

Combined with the National Disability Insurance Agency’s (NDIA) enhanced capability to detect and prevent fraud through the $83.9 million Crack Down on Fraud program, and the work of the Fraud Fusion Taskforce (FFT) in identifying crooks, Minister Shorten said those doing the wrong thing would be caught.

“The days of viewing the NDIS as a government honeypot are well and truly over,” Minister Shorten said.

“With more resources at its disposal than ever before, the Fraud Fusion Taskforce is working tirelessly to identify these rogues and scoundrels to help bring them to justice.”

Anyone with information about suspected fraud involving the NDIS should contact the NDIS fraud reporting and scams helpline on 1800 650 717, or fill out our online NDIS Fraud reporting form.