Federal authorities in Australia have arrested five people in connection with an alleged fraud syndicate that bilked government programs out of approximately $235 million. The investigation, dubbed Operation Integrity Fusion, targeted fraudulent claims made against the National Disability Insurance Scheme (NDIS) and other welfare systems.

Australian Federal Police confirmed the arrests on Wednesday, stating that further charges and arrests are possible as the investigation continues. Authorities executed 26 search warrants across Adelaide, the Central Coast, Melbourne, rural Queensland, and Sydney. During these operations, officers seized 44 digital devices and 37 cloud-based accounts.

Investigators also recovered significant assets, including over $120,000 in cash, $15,000 worth of silver bullion, $11,000 in gold coins, and approximately $60,000 in jewelry. Police believe these items were used in money laundering activities associated with the alleged fraud.

The investigation unfolded over three months, encompassing seven individual operations:

  • Operation Hawk in August led to one arrest for allegedly defrauding the NDIS of $700,000 through two created businesses. A court date is set for December 3.
  • Operation Rhodonite, initiated in September, is investigating an NDIS network where four providers and one plan manager allegedly claimed $100 million since 2019. No arrests have been made.
  • Operation Fortis-Hailstorm, also in September, is looking into a Sydney-based Family Day Care service suspected of claiming about $4 million in Child Care Subsidy payments since January 2024 without providing services. No arrests have been made.
  • Operation Cedar, in early October, resulted in the arrest of three Chinese nationals. They allegedly used stolen Centrelink information, obtained via a phishing scam on a fake 'myGov' website, to redirect $2.5 million in payments into their accounts. Over 3,000 transactions were uncovered.
  • Operation Evergreen, in October, is investigating a man suspected of defrauding the Department of Veterans Affairs of more than $29 million by billing for services his veteran support business did not complete. No charges have been laid.
  • Operation Inca-Varrakai, also in October, led to the arrest of a former NDIA employee. She is accused of selling information of 78 NDIS participants to providers with whom she had a conflict of interest. These providers allegedly claimed $21.8 million against the participants' plans, generating $1.6 million in profit.
  • Operation Ford-Marcos, in October, is investigating a suspected NDIS fraud syndicate of six people of interest, 10 key providers, and five secondary providers. The group allegedly lodged claims totaling about $83 million and is suspected of laundering $6.7 million in cash, gold, and jewelry. No arrests have been made in this operation.

AFP Detective Acting Superintendent Stephen Raper stated that defrauding government agencies is a deliberate act that harms taxpayers. He emphasized that service providers are meant to support Australians in need, and those who exploit the system for personal gain are a threat to national security. Law enforcement and partner agencies are committed to pursuing those involved.