Compliance

Jail time for two people charged with fraud after FDC investigation by AFP

Freya Lucas

Nov 04, 2020

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Two New South Wales residents were sentenced to jail time earlier this week for their roles in a criminal enterprise to fraudulently claim funds from the child care subsidy payment scheme.

The Australian Federal Police (AFP) began an investigation into the matter after the Department of Education, Skills and Employment provided information regarding suspicious activity relating to the scheme.

A large number of FDC payments that occurred following the enrolment of more than 1600 children over a one-month period in 2017 by two family daycare providers tipped off the Department to possible fraudulent activity, triggering the Department to involve the AFP.

Claims made for the care of these children totalled more than $9.274 million.

It was alleged in court on Monday, 2 November, that a person, referred to in documentation as XY, was a key facilitator in a scheme to purchase two pre-existing FDC services and falsely claim childcare benefits on their behalf.

To distance themselves from the fraud, ‘front people’ were then used for the companies running the service.

A 36-year-old Merrylands woman was alleged to be one of these ‘front people’ who conducted fraudulent banking transactions in exchange for cash payments.

XY was arrested by police in 2018 and pleaded guilty to two counts of conspiracy to defraud the Commonwealth contrary to section 135.4(1) of the Criminal Code 1995 (Cth).

The person referred to as “XY” was sentenced on 1 November to four years’ imprisonment, with a non-parole period of two years and six months.

The 36-year-old woman was arrested by police on 3 August 2017 and pleaded guilty to one count of recklessly dealing with proceeds of crime, money or property worth $1,000,000 or more contrary to section 400.3(2) of the Criminal Code 1995 (Cth).

The woman was today sentenced to four years’ imprisonment, with a non-parole period of two years.

There are a number of other court proceedings continuing in relation to this investigation, the outcomes of which will be shared in due course.

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Jail time for two people charged with fraud after FDC investigation by AFP

Two New South Wales residents were sentenced to jail time earlier this week for their roles in a criminal enterprise to fraudulently claim funds from the child care subsidy payment scheme.

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