Five arrested in probe of over $235m rorted from federal agencies including NDIA

Federal police have arrested five individuals as part of a probe into alleged fraud schemes defrauding federal agencies of over $235 million. The investigation, which involved raids across Australia, targeted service providers accused of claiming government funds for services not delivered. Police seized digital devices, documents, and large sums of cash and valuables during the raids.

The Australian Federal Police (AFP) involved more than 100 officers in the operation, working alongside multiple state police forces. The alleged fraud encompassed multiple government agencies, including the National Disability Insurance Agency (NDIA), Services Australia, the Department of Veterans' Affairs, and the Department of Education.

Police alleged that the individuals stole government funds by claiming rebates and benefits for services they did not provide or only partially delivered. The NDIA spokesperson confirmed that the agency had strengthened its systems to detect suspicious claims. One of the charged individuals was an NDIA employee who allegedly provided 78 NDIS participant records without authorization to NDIS providers, who profited from the NDIS-funded revenue.

She faces Adelaide Magistrates' Court accused of abusing public office. Another charged man in rural Victoria allegedly defrauded the NDIS of $700,000 over two years by creating two businesses to receive false invoices for services claimed to have been received. Three Sydney-based Chinese nationals were charged with fraud for collecting Services Australia user details through a phishing scam, directing victims to a fake myGov website to steal Centrelink records.

Since March 2025, this group allegedly made over 3,000 fraudulent transactions, stealing $2.5 million from the federal government. The AFP also investigated four other NDIS providers and one NDIS plan manager allegedly claiming $100 million in funding since 2019. They detected money-laundering methods such as ATM cash withdrawals and gift card purchases. No arrests have been made in the ongoing investigations.