A police taskforce to hunt down organized crime groups exploiting the National Disability Insurance Scheme will be established by the government in coming weeks, the NDIS Minister says.
Key points:
Australia’s criminal intelligence agency believes billions are being defrauded from the NDIS
Organized crime groups have allegedly infiltrated the disability scheme
A police taskforce will be established to expose the fraudsters
An investigation by Nine newspapers has alleged members of the Hamzy and Alameddine crime groups in Sydney and other organized criminal gangs have been rorting billions of dollars from the NDIS scheme.
The head of the Criminal Intelligence Commission, Michael Phelan, told Nine newspapers that criminals were systemically “ripping off our most vulnerable people.”
Mr Phelan said there was evidence of criminals creating fake clients, skimming money, exploiting and intimidating clients and using pharmacy employees as “spotters” to find new NDIS clients to target.
Australian Criminal Intelligence Commission boss Michael Phelan says organized crime groups have infiltrated the NDIS.(AAP: Mick Tsikas)
NDIS Minister Bill Shorten gave a scathing assessment, as he announced a multi-agency taskforce would be established to track down fraudsters.
“I think they’re literally gutless cowards,” Mr Shorten told Nine this morning.
“They may think they’re tough, some of these organized crime people. They may boast themselves amongst how clever they are.
“The rest of Australia despises this. And what we’re going to do is make sure that the NDIS is only for the people who need it.”
Mr Shorten said he had warned the former government of massive fraud in the scheme.
He said he suspected there was exploitation and coercion by criminal gangs, but also that there may be people unconnected to organized crime who were padding bills and “robbing the scheme”.
NDIS Minister Bill Shorten is deriding the ‘cowards’ exploiting the most-vulnerable members of the community.(ABC News: Nicholas Haggarty)
The minister said there must be more due diligence on the invoices of people claiming to have provided services.
“It’s a mystery to me why different parts of government don’t talk to each other better … I’m not satisfied there is sufficient communication between the National Disability Insurance Agency, the tax office, policing. It shouldn’t be this way, but it is,” Mr Shorten told ABC Radio.
“And I don’t understand why more hasn’t been done earlier.”
NDIS anti-fraud teams have recovered a small portion of the alleged billions that have been defrauded from the scheme, charging 18 people since 2020 with a total of about $14 million in alleged fraud.
Tens of thousands of fraudulent flood assistance claims have been made this year, with more than $10 million dollars in support denied.
Key points:
There have been 3.5 million claims for flood support between February 28, 2022 and July 31, 2022
There have been more than 27,770 claims that have raised suspicions
More than 793 criminal investigations have been launched into suspected fraudulent claims
Payments have been offered to people impacted by floods in New South Wales and South-East Queensland in February and the recent Sydney floods in July.
Government Services Minister Bill Shorten has raised concerns that, while money is being offered to those who need it, others are taking advantage of the system.
“I believe that the taxpayer-funded safety net needs to go to those who need it and it really makes my blood boil when I think that there are some people out there taking advantage of other people’s misery to steal $1,000,” he said.
“What is going on with people? How can people think like that?”
The support on offer includes the Australian Government Disaster Recovery Payment of $1,000 per adult and $400 per child, as well as the Disaster Recovery Allowance which provides 13 weeks of support at the rate of the JobSeeker allowance.
About 3.5 million claims have been made for assistance between February and July following the floods.
Bill Shorten says it is important fraudulent claims are detected. (ABC News: Nick Haggarty/File)
Of those, there have been 27,770 cases that appear to be suspicious and about $10.5 million in support has been denied.
Mr Shorten said it was important that all fraudulent claims were picked up by the system.
“I’m very mindful that this is taxpayer money and I’m mindful that taxpayers are happy to help their fellow Australians in trouble,” he said.
“But they do expect government agencies to be as careful as they can separating the legitimate from the illegitimate.”
Mr Shorten said he was concerned there had been, or could still be, opportunistic behavior that was “robbing” from flood victims.
“I’m asking Services Australia: ‘Are we catching everyone?'” he said.
“I want to make sure that our detection systems for fraud are what they should be, and anything other than that undermines public confidence in the provision of support for victims.”
He said there were now 793 criminal investigations underway.
More than $1 billion has been handed out to Australians this year in flood support.
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Probe finds lead emergency agencies failed in flood response.(ABCNews)
Scammers are pretending to be children in need of financial help as part of a new messaging scam targeting parents, authorities have warned.
Key points:
The scammers invent emergencies to encourage payment, such as needing a new phone or paying an urgent bill
Detectives have identified at least 25 victims of the scam this year
Police say these sorts of scams are often under-reported
At least 25 victims of the scam, which originated in Europe, have been detected in Victoria this year.
The victims typically receive a WhatsApp or text message from an unknown number impersonating their child.
According to police, messages often say something along the lines of “Hi mum, I’ve changed provider/lost/broken my phone – I’m temporarily using this number for now.”
The offenders eventually request money from the victim, usually using some kind of emergency as their justification for needing the funds.
Most of the offenders are based overseas and are not known to the victims.
An example of the scam messages.(Twitter: Scamwatch)
Detective Sergeant John Cheyne from the Cybercrime Squad said such scams pulled on the victim’s heartstrings.
“A child telling you they’ve lost or broken their phone and are in need of financial support is understandably a situation where parents would react without a second thought,” he said in a statement.
“If ever you receive a message from an unknown number asking for money, it’s always worth asking for some kind of verification.
“If they can’t prove who they are or aren’t willing to, don’t transfer the money.”
The conversations usually progress for a while before the offender requests money.(Twitter: Scamwatch)
A recent report by the Australian Competition and Consumer Commission found scammers stole $1.8 billion from Australians in 2021 — more than double 2020’s total.
Factoring in the estimated number of unreported scams, that figure exceeds $2 billion.
“Often, matters of this nature are under-reported and that can be for a range of reasons, including fear or embarrassment, and sometimes feeling unsure if an offense has occurred,” Sergeant Cheyne said.
“We encourage anyone who has been subjected to a scam such as this to speak to police.”
Anyone who has been a victim of the scam should call their bank immediately and report the incident via ReportCyber.
South Australian MP Fraser Ellis has lost a bid to have deception charges against him dismissed.
Key points:
Independent MP Fraser Ellis will stand trial on deception charges
He claims he is immune from prosecution because the allowance claims were under parliamentary privilege
His charges rose from an Independent Commissioner Against Corruption (ICAC) investigation
The Yorke Peninsula MP is due to stand trial later this month.
The Liberal-turned-independent is seeking to contest allegations he made 78 fraudulent claims for an accommodation allowance totaling more than $18,000.
He was one of two MPs charged and several investigated for their use of the allowance by the state’s Independent Commissioner Against Corruption after a series of exclusive ABC News stories.
Mr Ellis had argued the case against him should be dismissed, because the allowance claim forms which are the subject of his alleged deception have been tabled in parliament, making them subject to the “absolute protection of parliamentary privilege”.
This morning, Magistrate Simon Smart dismissed Mr Ellis’s application to stay the charges.
The state’s ICAC Act was significantly amended in November last year, after Mr Ellis was charged.
Amongst the wholesale changes, the protections of parliamentary privilege were strengthened, so that ICAC cannot exercise any powers “in relation to any matter to which parliamentary privilege applies”.
A former Logan councilor has described how fraud charges laid in the wake of an investigation by Queensland’s corruption watchdog destroyed her life and led to a barrage of public abuse.
Key points:
The Logan City councillors who were sacked are considering pursuing compensation from the state government
Trevina Schwarz says the reputational damage she suffered is irreparable
Premier Annastacia Palaszczuk would not say if an apology would be issued
Trevina Schwarz was one of eight former Logan City councilors who in 2019 were charged with fraud and sacked following a Crime and Corruption Commission (CCC) investigation.
The charges were dropped last year due to insufficient evidence.
Ms Schwarz said the ordeal took a major toll on her family, saying it copped relentless abuse from the public.
“My son was abused in Bunnings and asked to come outside so the fellow could fight him. It really was awful,” Ms Schwarz told ABC Radio Brisbane.
“You’d walk in a home where you’d lived for 30 years and people would look at you and point as you were walking down the street.
“You couldn’t escape from it. It was on the news, it was on the radio, it was in the papers.
“It absolutely destroyed my life. And the toll that it also takes on your family is huge.”
Her comments came after leading Queensland corruption fighter Tony Fitzgerald yesterday handed down a report into how corruption is investigated in the state.
It included a string of recommendations.
Among them was the need for the CCC to consult with the state’s Director of Public Prosecutions (DPP) before laying charges to avoid “unwarranted impact” and to rebuild public confidence.
The report also found the Logan City Council probe damaged the public’s perceptions of the CCC.
Calls for an apology
Premier Annastacia Palaszczuk would not say if her government would issue an apology to the councillors.(ABCNews)
When Ms Schwarz received a call from the CCC notifying her that the charges had been dropped, she initially “thought it was a hoax”.
She said the CCC had failed to comply with its own rules during its investigation of the Logan City Council.
“Although there should be great and high protection for whistleblowers, first and foremost, you need to ensure that those complaints are factually correct and not malicious.”
While she is pleased with the recommendations in Mr Fitzgerald’s report, Ms Schwarz is hoping for an apology from the state government after cabinet meets on Monday.
“Wrongfully charging us has destroyed our lives, our careers and the reputational harm is irreparable,” she said.
“We’re all disappointed that we have not received an apology, a meaningful apology. That should be forthcoming,” Ms Schwarz said.
Former councilors considering legal action
Ms Schwarz also told ABC Radio Brisbane the eight sacked Logan City councilors were considering pursuing compensation from the state government.
“We’ve all been looking at it with the legal team but we’re just not too sure how that’s going to go at the moment,” she said.
Ms Schwarz said she had been unable to find work since being sacked from the council, despite the charges against her being discontinued.
“You’ve got all of this this baggage that’s sitting on you, that you’ve been charged with fraud. They’re not going to employ you,” she said.
“The reputational harm is irreparable and the stigma is going to stay.”
Ms Schwarz said she would never consider running for council again after the ordeal.
The inquiry’s report said it would not revisit or re-litigate the investigation of the Logan council.
Queensland Premier Annastacia Palaszczuk did not comment on whether the former councilors would be issued an apology.
“No-one would like to see what happened to those particular councilors happen again,” Ms Palaszczuk said.
“That report is very clear about a path forward … so we would probably not see the likes of that happening again. That would be my expectation.”
When asked about the Logan councillors, Queensland Agricultural and Rural Communities Minister Mark Furner said the cabinet ministers would need to review the report before decisions were made.
“It is important that I, myself, and every other cabinet minister has an appraisal of what the report means and will make a decision based around those outcomes,” he said.
“I think there is an opportunity now, where the report will identify significant changes to the way the CCC operates.
“We need to work through those changes, what it needs.
“But what we do need is stable leadership in terms of the way the CCC operates into the future with the chair.”
The trip of a lifetime has come to a crashing halt for a criminal who stole the identity of a man in South Australia, in an attempt to escape authorities and flee to the Northern Territory.
Key points:
Travis Whyte pleaded guilty to eight fraud-related offenses in April
He stole around $25,000 from a South Australian man, after stealing his identity
In a letter to a friend, Whyte described his offending as the “best two weeks of his life”
Travis Whyte, while on bail for offenses allegedly committed in South Australia, assumed the identity of another man, after coming into possession of his wallet in Whyalla in September last year.
Over the next two weeks, Whyte made his way to Darwin using the stolen bank cards, stealing fuel and twice evading police along the way.
He was eventually arrested in Darwin, attempting to purchase a $70,000 car.
In a letter Whyte wrote to a friend from prison in January this year, released by the court, he described his crimes as “the best 20 days of [his] life”.
“Darwin, first three days and I blew through my cash!!” Whyte wrote.
“Everyone thinks I’m [this] other bloke… his bank gave me full access to his 200k!! So I’m up on $180k fraud charges and looking at 2.5 years … I had the best 20 days of my life bro!! I can die a happy man!!”
The man went on a trip after coming into possession of someone else’s wallet.(ABC Adelaide: Brett Williamson)
“Spending somebody else’s money, buying cars to avoid detection, visiting a number of landmark sites in the NT [such as] the Devil’s Marbles, really enjoying himself in the course of this spree,” said Crown Prosecutor Tami Grealy.
“He continued until he was caught.”
A man who will “say anything to anyone to get what he wants”, according to Ms Grealy, Whyte withdrew close to $25,000 from the man’s accounts and was able to receive checks totaling $81,848 from the man’s bank by impersonating him.
He pleaded guilty to eight offences, including five charges of obtaining benefit by deception.
Travis Whyte went on a two-week roadtrip and was charged with fraud after coming into possession of someone else’s wallet.
The ‘best two weeks’
According to a statement of facts tendered to the Northern Territory Supreme Court, Whyte stopped at various roadhouses and hotels along the Stuart Highway as he made his way from Whyalla to Darwin.
On two occasions, he stole fuel from remote petrol stations and was eventually met by police in Katherine for failing to pay.
“The offender informed police his name was [the victim’s] and produced [his] license as identification,” the facts read.
“The offender indicated he panicked and left [the petrol station] but had been feeling guilty all day. He told police he would call his mother to get some money, then he would return to Mataranka and pay for the fuel.”
Whyte never returned to pay.
He was again picked up by police in Darwin city after he was seen mounting a kerb in his car around 3am on September 25 last year.
Police confiscated the stolen driver’s license from Whyte, after he tried to convince them he had “lost 20 kilograms” and that was why the picture didn’t look like him.
Whyte later managed to obtain a digital version of the victim’s license.
Ultimately, the 36-year-old’s great undoing was an attempt to use the stolen identity and money to purchase a car at Hidden Valley Ford in Darwin’s outer suburbs.
The fraudster visited a number of iconic and scenic Northern Territory attractions, including Karlu Karlu, also known as the Devil’s Marbles.(Wikimedia: Dagmar Hollman)
Dealership staff also queried why Whyte didn’t look like the picture in his stolen driver’s license, but according to the statement of facts, he told them he “had lost about 50 kilograms”.
After attending multiple banks in order to secure the money to buy a car, Whyte was met by plain-clothed police at Hidden Valley Ford after dealership staff tipped them off.
Upon his arrest, Whyte told officers he “didn’t feel like he was hurting anyone” and asked police “what had brought him unstuck.”
‘Literally no concern’, prosecutors say
In arguing for Whyte to be jailed with a non-parole period, Ms Grealy argued the letter he wrote to a friend showed “literally no concern” for anyone else.
“A man with his criminal history, who’s committed offenses of dishonesty for years… it is nonsense, in my submission, that only now… does he understand his offending touches the lives of anyone,” Ms Grealy said.
“This really is offending where he has gone to a lot of trouble to avoid detection … obviously, all signs point to somebody who was on the run, not looking to be located in the Northern Territory.”
Three of the territory’s gushing waterfalls were visited by Mr Whyte on his travels.(Supplied: Serena La Canna)
In his letter to a friend, Whyte wrote he had been “running amok” and “done all the touristy things.”
“Devil’s Marbles, eight different springs, three waterfalls, one national park and then I made it to Darwin,” Whyte wrote.
Mr Whyte’s defense lawyer told the court prosecutors had “cherrypicked” aspects of the letter and the “best 20 days of [his] life” was not necessarily due to “ripping people off”.
“The fact that some of the money he used was not his own does not mean it is the best part of his experience,” Giles O’Brien Hartcher said.
“The territory’s a beautiful place, we all want to do that. It’s not inconceivable that it would have been a fantastic time. The road trip up the Stuart Highway is a fantastic experience.”
Mr O’Brien Hartcher conceded his client was not a “fully reformed human being” but argued he should still be afforded future opportunities for rehabilitation.
“The benefit Mr Whyte enjoyed was objectively small,” Mr O’Brien Hartcher said.
Justice Jenny Blokland will hand down Whyte’s sentence on September 1.
Victoria Police have arrested and charged four people who are accused of scamming Melbourne residents, as they allegedly attempted to escape the country undetected after the fact.
Key points:
Four men have been arrested and charged in relation to a roofing scam
Police allege the scam netted more than $640,000
Police believe more than 20 Melbourne residents were affected by the scam
Police allege the group scammed more than 20 Melbourne residents by posing as workers from a legitimate roofing company, collecting more than $640,000 after telling home owners their roofs needed urgent repairs.
A 21-year-old Irish national allegedly involved in the scam was detained at Tullamarine Airport on July 28 after allegedly trying to board a flight to Ireland with his brother’s passport.
Police say the accused man charged an 81-year-old Kew resident $99,000 for repair works on his roof between May and June 2022 and ultimately left it in worse condition, with the owner “forced to use pots and pans inside the house” to combat leaks.
Pair attempts to leave country days after first arrest
Police later arrested three males on July 31 in connection to a further $540,000 worth of alleged roofing scams this year.
Two of the men were also caught by Australian Border Force (ABF) officials attempting to board a flight out of the country at Tullamarine Airport, while a 20-year-old female traveling with the pair was released after questioning.
ABF Superintendent Nicholas Walker said the two British nationals and the Irish national had tried to make their escape when they were arrested.
“These were deliberate attempts to slip out of the country undetected and the decisive action of the ABF officers who stopped them should serve as a warning to anyone else looking to do the same,” Superintendent Walker said.
“The ABF targets traveling with men who seek to exploit vulnerable people. We are working with state police to identify and disrupt the criminal activities of traveling with men through Operation Suddenblaze.”
A 35-year-old male was also arrested in Oakleigh later that day and subsequently charged with deception offenses and dealing with the proceeds of crime.
Police say homes were often left in states of disrepair or with unfinished work.(ABC News: Nicolas Perpitch)
Subsequent independent inspections of residents affected by the scam identified that works quoted for were never required, incomplete or were of poor workmanship, with amounts quoted deemed excessive.
It follows the jailing of a separate trio of men who targeted elderly Victorians with an elaborate roofing scam in 2020.
Senior Constable Lachlan Balazs from the Boroondara Crime Investigation Unit said crimes such as the roofing scam often affected vulnerable Victorians the most.
“Sadly, it is often some of the more vulnerable or elderly members of our society who are most impacted. For many the emotional distress and loss of confidence and trust in others is just as damaging as the financial fallout,” Senior Constable Balazs said.
Police said a Toorak resident who found the group through an internet advertisement was advised by the scammers she required over $31,900 in roof repairs, which she paid for.
An independent roof inspector later advised that the only work conducted appeared to be the replacement of a downpipe, which was valued at $350 worth of work.
Senior Constable Balazs said it was likely there were still more victims affected by the scams who had not come forward.
“There is a possibility that further members of the community have been affected by similar activity and we are urging anyone who suspects they may have fallen victim to illegitimate building work of this nature to come forward.”
