18 arrested as alleged family day-care fraud syndicate dismantled
A sophisticated family day-care fraud syndicate stretching from Sydney to the Illawarra has been smashed by a major joint agency operation.
Eighteen people, including 15 women and three men, were arrested at properties across south-west Sydney and in the Illawarra on Wednesday over their alleged role in a co-ordinated syndicate to fraudulently claim for Commonwealth benefits under childcare subsidy schemes.
The arrests and more than 20 search warrants were executed as part of the joint operation between the NSW Financial Crimes and Organised Crime squads, the Australian Government Department of Education and Training and the Australian Criminal Intelligence Commission.
Investigations into the alleged syndicate date back to July 2018, when the four agencies came together to establish Strike Force Mercury, to investigate sophisticated and coordinated fraudulent activities targeting family day care operations.
Under the federal government's childcare subsidy scheme a subsidy is "paid directly to providers to be passed on to families as a fee reduction."
Families then make a co-contribution to their childcare fees, paying the provider the difference between the fee charged and the subsidy amount.
Police are yet to detail how the alleged syndicate defrauded the scheme, however a police spokeswoman said further information would be made available when it comes to hand.
Properties in Greenacre, Bass Hill, Georges Hall and Chester Hill were among those where search warrants and arrests were executed from 6am on Wednesday.
Images and videos of the arrests depict men and women being apprehended by strike force investigators, including one man on his knees with his hands cuffed behind his back.
In a statement a spokesman for the Department of Education and Training said it had worked closely with police leading Strike Force Mercury, adding that it took non-compliance and fraud seriously.
"In recent years, 29 people have been charged with criminal offences in relation to child care payment fraud and 21 people have been found guilty to date, with several cases still before the courts. Today’s arrests add to this tally," he said.
"It is not appropriate for the department to comment on the detail of operational matters or matters before the courts."
The strike force was also assisted by the NSW Department of Education and NSW Crime Commission.