A jail term imposed in by a court Melbourne today shows that people who seek to cheat the NDIS will be caught and punished.
A National Disability Insurance Agency (NDIA) investigation found Kim Michael Schubert abused his position as an employee at a disability employment services company.
The offender provided details of 90 NDIS participants to the operator of another, problematic NDIS provider and shared in more than $190,000 obtained through subsequent fraudulent claims.
The case was the 23rd successful conviction for crimes committed against the NDIS since the Australian Government established the multi-agency Fraud Fusion Taskforce in November 2022.
Action taken by the Taskforce has seen convictions for NDIS fraud double.
A judge sentenced Schubert in Melbourne County Court to three years' jail with nine months to be served.
The court ordered Schubert to pay $40,000 in restitution.
The co-offender was sentenced to two years and nine months' jail in October 2023 and was released on a three-year good behaviour bond following sentencing. He repaid $94,030 to the Commonwealth.
During the investigation, the NDIA worked with the Australian Federal Police, Queensland Police Service and the NDIS Quality and Safeguards Commission, which issued banning orders against the offenders and the provider business.
The NDIA moved quickly to safeguard affected participants, ensuring their plans were restored and they could continue to access the supports they rely on.
Since 2022, the Government has invested substantially to build the NDIA's capacity to detect, stop and respond to non-compliance and fraud, including:
- $345.3 million to establish the Crack Down on Fraud program
- $152.8 million to create the Fraud Fusion Taskforce
- $56 million to fund the NDIA's payment integrity review workforce.
The Fraud Fusion Taskforce's 24 member agencies working together to dramatically increase actions against criminals abusing the NDIS and other government payment programs.
The Taskforce has 660 investigations underway and has referred 59 people to court.
The Fraud Fusion Taskforce, Crack Down on Fraud and Payment Integrity programs have dramatically improved the ability to detect provider risk. Since the start of the Taskforce more than 2,500 providers who have either submitted incorrect or non-compliant claims to the NDIS or had other significant risk indicators have been disrupted.
The NDIS Quality and Safeguards Commission has banned almost 200 individuals and providers from the NDIS as a result of Fraud Fusion Taskforce operations.
Implemented NDIS integrity interventions have delivered more than $3.1 billion in benefits between November 2022 and June 2029.
These benefits include over $880 million in savings to the NDIS due to prevented non-compliant payments and $2.2 billion in payments diverted from problematic providers into higher quality spending on genuine disability supports and services.
Anyone with information about suspected fraud involving the NDIS should contact the NDIS fraud reporting and scams helpline on 1800 650 717. An interpreter service is available (13 14 50) as well as an online NDIS Fraud reporting form.
The individuals were prosecuted by the Commonwealth Office of the Director of Public Prosecutions following referrals from the NDIA.
Quotes attributable to Senator Jenny McAllister, Minister for the NDIS:
"If you seek to abuse your position as a disability support worker to steal from the NDIS, we will find you and throw the book at you.
"You will face jail time along with a court order to repay the money you stole from people with a disability."
"Our operations to tackle fraud are getting stronger every day."
"We are reviewing more claims, receiving more tip-offs, conducting more investigations, handing down more banning orders, referring more matters to the police and prosecuting more fraudsters."
"As cases progress through the courts, we expect to see more prosecutions and jail sentences for criminals who think they can exploit the NDIS and get away with it."
