NDIS provider is arrested after allegedly making $5million worth of bogus claims to rip-off taxpayers

By ASHLEY NICKEL, NEWS REPORTER, AUSTRALIA Published: 15:05, 16 August 2026 | Updated: 15:05, 16 August 2026 A second member of an alleged National Disability Insurance Scheme (NDIS) fraud ring accused of scamming the government out of $5million of taxpayer money has been arrested. Australian Federal Police officers arrested the man, 38, at Adelaide Airport on Friday as he prepared to leave the country. The man was registered as the director of an NDIS provider. The Australian Government Fraud Fusion Taskforce (FFT) began investigating the alleged syndicate in March this year after the National Disability Insurance Agency (NDIA) noticed unauthorised access to protected records. Investigators searched two homes in Mawson Lakes and Blakeview, both in northern Adelaide, and a business in Prospect, inner-north Adelaide, on June 10. Several electronic devices were seized for forensic examination. An Adelaide woman, 48, was the first to be arrested in connection with the alleged scheme on June 10 and was accused of using her position as an NDIA worker to access more than 40 NDIS participants' records. It's alleged she then shared those records with a local NDIS provider, owned by the 38-year-old man, for financial gain.  Australian Federal Police officers arrested a man (centre) for an alleged NDIS fraud operation The man (above) is accused of stealing about $5million from NDIS fraud The 48-year-old woman allegedly received more than $53,000 for her part in the alleged scheme.  It's alleged the 38-year-old man then used the records to make thousands of NDIS claims, totalling about $5million. He was arrested on Friday and charged with dealing with the proceeds of crime and soliciting protected NDIS participant information from an NDIA worker. He will front Adelaide Magistrates Court on Monday. The 48-year-old woman is set to front Adelaide Magistrates Court on Thursday. The taskforce investigating the alleged scheme included the AFP, NDIA, Australian Criminal Intelligence Commission and NDIS Quality and Safeguards Commission. AFP Detective Acting Inspector Aaron Mills said the taskforce was tireless in pursuing alleged NDIS fraud.  'The dedication and collective efforts of the Fraud Fusion Taskforce are vital to detect and stop those who attempt to rip off public funds,' he said. Police alleged the man (right) used illegally-accessed records to file fake NDIS claims 'We will continue to identify, investigate, and bring before the courts anyone who attempts to engage in this type of unlawful activity and flout, or attempt to evade, the law.' An NDIA spokesperson praised the second arrest. 'Elite intelligence across law enforcement bodies and government agencies is detecting and disrupting bad actors,' they said. 'Our strengthened integrity systems and multi-agency efforts are closing opportunities for exploitation and protecting the NDIS and the participants who rely on it for support.' Anyone with information about suspected fraud involving the NDIS can contact the NDIS fraud reporting helpline on 1800 650 717 or email fraudreporting@ndis.gov.au. Sorry we are not currently accepting comments on this article.