Victorian childcare fraudster receives three years in prison

Relevant impacts: Government Outcomes Impact, Financial Impact, Business Impact

A Victorian childcare fraudster has been sentenced to 3 years imprisonment and ordered to repay $1.7 million to the Department of Education for defrauding Australia's childcare system.

The woman, Nuer Deng, had owned and operated an approved Family Day Care service between 2013 and 2016. Ms Deng was found to have claimed childcare payments to which she was not entitled through a wide variety of methods, including:

• Falsely claiming Jobs, Education and Training Child Care Fee Assistance by lying about training enrolment.
• Lodging claims for childcare sessions with educators who were not in Australia.
• Lodging claims for childcare sessions where the child was not enrolled in her service.
• Charging inflated childcare fees where the parent was eligible for government assistance.
• Dishonestly claiming a grandparent childcare benefit.
• Attempting to bribe a Centrelink Services Officer when scrutiny was placed on her services.

In total, Ms Deng's fraud took place over 3 years. In her sentencing, the judge noted Ms Deng's vulnerable status was a contributory factor to her fraudulent activity, which occurred alongside attempts to engage in legitimate childcare activity. This case highlights that individuals engaged in fraudulent activity may also experience personal or financial vulnerability. Within the context of fraud typologies, such vulnerability can contribute to rationalisations for non-compliant behaviour. It is an important consideration in understanding fraud risk and prevention.