Four arrested over $2 million NDIS scam

By Anna Macdonald

June 3, 2022

Martin Hoffman
NDIA CEO Martin Hoffman said his agency continues to be vigilant for fraudulent activity.(AAP Image/Lukas Coch)

Four people have been arrested following an investigation into a National Disability Insurance Scheme (NDIS) scam, allegedly defrauding $2 million from NDIS participants. 

Following an investigation by the NDIS Fraud Taskfoce, simultaneous search warrants were completed by the Australian Federal Police (AFP) on Wednesday in western Sydney as part of Operation Pyxis.

The taskforce is a partnership between the National Disability Insurance Agency (NDIA), the AFP and Services Australia. 

The AFP has said the four people arrested have ties to organised crime gangs. Three of the four had posed as disability service providers. Money was allegedly being claimed from NDIS participants for services that were never received. 

The fourth person was charged with allegedly being involved in dealing with the proceeds of the scam. 

All four are also alleged to have threatened participants and witnesses with violence, according to the AFP. 

NDIA CEO Martin Hoffman said his agency continues to be vigilant for fraudulent activity.

“Our participants, as well as their families and carers, should be assured that the agency, working alongside our partners in law enforcement, will use all its power to ensure that funding intended to support them and their disability needs continues to be protected,” Hoffman said.

NDIS commissioner Tracy Mackey also emphasised the organisation’s continuous monitoring for scams. 

AFP assistant commissioner Nigel Ryan said the AFP continues to work closely with the NDIS Fraud Taskforce to identify those people defrauding people with disabilities.

“The AFP will not stop in its pursuit of these groups who chop and change companies in a pointless effort to hide their criminal behaviour from law enforcement,” Ryan said. “Our level of intelligence-sharing with partners is something criminal groups should be extremely apprehensive of.”

Three of those arrested were scheduled to appear in Parramatte Local Court on June 1, with the other scheduled to appear in the Downing Centre Local Court on June 2. Charges incdlue conspiracy to defraud and general dishonesty. 

Former leader of the oppposition Bill Shorten was named NDIS minister earlier this week. 


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