GST fraudster sentenced to 4 years' jail for role in NSW fraud syndicate

The ATO said this was the final sentencing under Operation Pegasus, which was the investigation into the multimillion-dollar criminal syndicate.

ATO acting deputy commissioner Pennie Snowden said the outcome served as a warning to anyone thinking of defrauding the tax system.

“This offending exploited systems designed to support vulnerable Australians, and attempted to rob the community of essential services in the process,” Snowden said.

“If you deliberately defraud the government, you will be caught, and you will face consequences.”

After the sentencing last week, the ATO said six offenders have received a combined 31 years and four months’ imprisonment.

The AFP, in partnership with the National Disability Insurance Agency (NDIA), AUSTRAC, Services Australia and the ATO, conducted operational activity across Sydney in April 2021, resulting in the arrests of 5 men and one woman connected to the syndicate.

Authorities seized more than $2 million in suspected tainted assets during the search warrants.

In 2022, the AFP-led Criminal Assets Confiscation Taskforce (CACT) obtained restraining orders over more than $6 million in property linked to the syndicate members, including bank accounts, cryptocurrency, luxury motor vehicles, gold, watches and jewellery.

Gold bullion, cash, jewellery, watches and 2 luxury motor vehicles worth about $1 million were forfeited to the Commonwealth in November 2025. The proceeds of crime proceedings are ongoing.

AFP Detective Superintendent Peter Fogarty said the AFP was unwavering in holding criminals to account, no matter how long it took.

“Criminal activity which seeks to exploit systems that support the community’s most vulnerable is an affront to hard-working Australians who are doing the right thing,” Detective Superintendent Fogarty said.

“This investigation is a testament to the great work done by all those involved, and the close connection between our law enforcement and agency partners, to hold criminals to account.”

An NDIA spokesperson said the outcome shows that even complex syndicates were no match for a coordinated multi-agency response.

“The NDIA is continually strengthening its capabilities to detect, disrupt and respond to fraud and working with partners to stay ahead of organised crime – anyone exploiting the NDIS will be caught,” the spokesperson said.

“We act to protect participants and ensure NDIS funding goes where it is intended – to provide the supports that NDIS participants need and deserve.”

AUSTRAC national manager of fintel alliance, Jon Brewer, said the case demonstrated how financial intelligence played a critical role in identifying and disrupting serious fraud.

“This case shows that those who seek to commit fraud against government programs designed to help the vulnerable will be identified, disrupted and held to account,” Brewer said.

“Through the Fintel Alliance, AUSTRAC worked closely with the NDIA and our partners to identify key individuals, trace suspicious fund movements and improve the detection and reporting of NDIS fraud, supporting Operation PEGASUS from its earliest stages.”

“Criminals who exploit government programs still need to move and hide their money. By following the financial trail and working closely with our law enforcement, agency and industry partners, we can help expose these networks and prevent further harm.”

The Commonwealth Office of the Director of Public Prosecutions (CDPP) prosecuted this matter.