AFP seize assets in FDC fraud case
The Sector > Quality > Compliance > AFP seizes more than $4m in WA as part of family day care fraud investigation

AFP seizes more than $4m in WA as part of family day care fraud investigation

by Freya Lucas

August 04, 2023

The Australian Federal Police (AFP) has restrained a property in Western Australia and more than $4 million from bank accounts, following an investigation into alleged family day care (FDC) fraud.


The AFP alleges the assets are owned by an FDC provider suspected to be claiming fraudulent Child Care Subsidy payments, with the money held in the accounts suspected of being the proceeds of crime.


The AFP Criminal Assets Investigation was launched after the Commonwealth Department of Education investigation codenamed Operation Velo   uncovered alleged false subsidy claims coordinated by a Perth-based FDC service provider.


Ahead of search warrants executed on Wednesday 2 August 2023, the AFP-led Criminal Asset Confiscation Taskforce (CACT) successfully restrained the assets, which included a property in the Perth suburb of Caversham and about $4.2 million held in two bank accounts, under the Proceeds of Crime Act 2002 (Cth).


The CACT brings together the resources and expertise of the AFP, Australian Taxation Office, Australian Criminal Intelligence Commission, AUSTRAC and Australian Border Force. Together, these agencies trace, restrain and ultimately confiscate criminal assets.


This activity also involved fraud investigators from the Department of Education and Services Australia, together with compliance staff from the West Australian Department of Communities, Education and Care Regulatory Unit.


“The AFP’s ability to break the cycle of illicit profit sends a strong message to criminals that their luxury lifestyles are an illusion which will inevitably disappear after police knock on their door,” said AFP Acting Commander Amelia McDonald.


“We want to remind offenders that crime doesn’t pay. In a time of rising cost of living pressures, it is crucial we target, identify and prosecute those breaking the law. Their actions drive up costs and hit the pockets of hardworking, honest Australians – and it will not be tolerated.”

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