A joint effort by the Australian Criminal Intelligence Commission (ACIC), the Department of Education and Training (DET) and NSW Police has uncovered an elaborate program of alleged fraudulent activity relating to family day care payments in NSW.
More than 20 search warrants were executed and 18 people charged.
Strike Force Mercury, consisting of NSW detectives from the Financial Crimes Squad and Organised Crime Squad, along with DET and ACIC, was established in July 2018 to investigate certain family day care operations.
The strike force was also assisted by the NSW Department of Education and NSW Crime Commission.
Police will allege in court that the syndicate fraudulently claimed Commonwealth payments under Child Care Subsidy schemes amounting to at least $3.8 million in payments annually.
During the searches, police seized large volumes of documentation, including business records, a Range Rover vehicle, $35,000 cash, and two electronic control devices.
The family day care operations were immediately shut down.
NSW State Crime Commander, Acting Assistant Commissioner Stuart Smith, said the syndicate was operating an entirely illicit business.
“It is not uncommon for investigators to uncover fraud as an element of organised criminal activity, but the sophistication and coordination of this group is possibly better than the average outlaw motorcycle gang,” Acting Assistant Commissioner Smith said.
“Their ‘business’ is exploiting a Government scheme that was established to relieve financial pressures of everyday mums and dads; the victim is every taxpayer in the country.”
A spokesperson for DET said the Department worked to track, detect and take action against individuals and organisations who engaged in fraud.
“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,” the spokesperson said.
