A 38-year-old Adelaide man has been charged over an alleged $5 million fraud plot targeting the National Disability Insurance Scheme, after Australian Federal Police officers arrested him at Adelaide Airport.
Police allege the man, a director of a registered NDIS provider, was preparing to leave Australia when he was taken into custody on Friday, August 14. The arrest is the second announced in an investigation that began earlier this year.
The allegations have not been proven in court. The accused is entitled to the presumption of innocence.
Two charges laid after airport arrest
The AFP charged the man with one count of dealing with proceeds of crime allegedly obtained through fraudulent NDIS claims. That offence carries a maximum penalty of 25 years’ imprisonment.
He was also charged with one count of soliciting protected agency information from a National Disability Insurance Agency staff member. Police said the second offence carries a maximum penalty of two years’ imprisonment.
The man was remanded in custody and is expected to appear in the Adelaide Magistrates Court on Monday, August 17. A maximum penalty is not an indication of the sentence that would be imposed if an accused person were convicted.
Investigation followed alleged access to participant records
The investigation is being conducted by the Australian Government’s Fraud Fusion Taskforce. It began in March after the NDIA identified what authorities described as unauthorised access to protected participant records.
Investigators allege the broader plot involved more than $5 million in NDIS funds. Publicly released information does not establish how much of that total has been paid, recovered or remains under investigation.
The taskforce brings together agencies with responsibility for fraud, intelligence, regulation and the administration of government payments. It is co-led by the NDIA and Services Australia and includes the AFP, Australian Criminal Intelligence Commission and NDIS Quality and Safeguards Commission. Authorities say the wider taskforce comprises 25 agencies and focuses on serious criminal activity targeting government programs.
Earlier arrest linked to the same inquiry
A 48-year-old Adelaide woman was charged in June as the first person accused in connection with the alleged plot. Authorities said at the time that she was an NDIA employee and was alleged to have accessed more than 40 participant records without authorisation, including outside work hours.
Investigators also alleged the woman submitted fraudulent claims involving the plans of relatives who were NDIS participants, including claims for supports and services that were not provided. The AFP alleged she received more than $53,000 from a local provider as part of the wider suspected scheme.
She faces four charges, including alleged disclosure of protected agency information, abuse of public office, attempting to forge false documents and dishonestly obtaining a financial advantage for another person. She was granted bail and is due to appear in the Adelaide Magistrates Court on August 20. Those allegations also remain unproven.
Searches carried out across northern Adelaide
During the June phase of the investigation, officers and taskforce partners executed search warrants at a home in Blakeview, another home in Mawson Lakes and a business in Prospect. Authorities said electronic devices and remote account data were seized for forensic examination.
The latest charge indicates the inquiry has continued beyond those searches. Authorities have previously said further charges were expected, but have not publicly identified any additional accused people or provided a detailed breakdown of the alleged $5 million loss.
The NDIS is designed to fund supports for eligible Australians with disability. Fraud investigations involving the scheme can cover false claims, misuse of participant information, conflicts of interest and suspected diversion of public money. The court process will determine whether the allegations in this case are established.
