Another NDIS fraudster sentenced to jail

Media event date: 3 July 2026 Date published: 3 July 2026 Media type: Media release General public A jail term imposed today sends a clear warning to any person who sets out to defraud the National Disability Insurance Scheme – you will be caught and punished. The odds of escaping detection are narrowing as the reach of sophisticated systems protecting NDIS participants grows.

A Perth man was convicted and jailed for his involvement in NDIS fraud while he was employed by the National Disability Insurance Agency (NDIA). James Davies pleaded guilty in the Melbourne County Court to general dishonesty under the Criminal Code Act, for offences he committed in Melbourne in 2020. The 35-year-old was sentenced to 2 years and 8 months imprisonment, to be released after 5 months and no further time served if he is of good behaviour for the balance of the term.

Davies is the 27 offender to be prosecuted and 18 offender jailed for crimes against the NDIS since the Australian Government established the multi-agency Fraud Fusion Taskforce in November 2022. Since 2022, the Government has invested more than $1.1 billion in the Fraud Fusion Taskforce, Crack Down on Fraud and Payment Integrity programs, which have dramatically improved the NDIA’s abilities to detect high-risk provider behaviour.

This includes new investments in the 2026-27 Budget of: $280.1 million to continue the Fraud Fusion Taskforce and invest in the NDIA to continue to detect and respond to fraud and non-compliant payments. $358.5 million to build a new enrolment and digital payments system with major upgrades to NDIS claims and payments systems commencing from July 2026 with full rollout expected by end of 2030.

Between April and May 2020, Davies, together with a former registered NDIS provider, submitted over $700,000 worth of claims for services that were never provided against participant plans he was managing in his role at the NDIA. Shortly after the false claims were submitted, the NDIA launched an investigation and worked with the Australian Federal Police to execute search warrants in Sydney and Melbourne.

Protecting participants is central to every integrity intervention. The Agency supported participants impacted by the offending. During the investigation, the NDIA worked with the NDIS Quality and Safeguards Commission, which is progressing regulatory action in relation to the provider and offenders.

The Fraud Fusion Taskforce's 25 member agencies work together to increase actions against criminals abusing the NDIS and other government payment programs. The Taskforce has launched more than 660 investigations and has referred more than 60 people for criminal prosecution. The Fraud Fusion Taskforce, Crack Down on Fraud and Payment Integrity programs have dramatically improved the ability to detect provider risk.

Since the start of the Taskforce more than 2,500 providers who have either submitted incorrect or non-compliant claims to the NDIS or had other significant risk indicators have been disrupted. The NDIS Quality and Safeguards Commission has banned almost 200 individuals and providers from the NDIS because of Fraud Fusion Taskforce operations. Implemented NDIS integrity interventions are projected to deliver more than $3.4 billion in benefits between November 2022 and June 2029.

These benefits include over $960 million in savings to the NDIS due to prevented non-compliant payments and $2.5 billion in payments diverted from problematic providers into higher quality spending on genuine disability supports and services. Anyone with information about suspected fraud involving the NDIS should contact the NDIS fraud reporting and scams helpline on 1800 650 717.

An interpreter service is available (13 14 50) as well as an online NDIS Fraud reporting form The individual was prosecuted by the Commonwealth Office of the Director of Public Prosecutions following a referral from the NDIA. Quotes attributable to Minister for the NDIS, Senator Jenny McAllister: “This sentencing sends a warning to anyone who thinks they can exploit the NDIS – you will be caught.

“Anyone who abuses their position at the NDIA, or in any Government agency, will be identified, investigated and prosecuted. “The Government is continuously building the NDIA’s capacity to detect and prevent misconduct, including against internal fraud risks. “Protecting participants and safeguarding the NDIS for future generations is our highest priority.” Senator the Hon Jenny McAllister Disability and carers Accessibility We acknowledge the Traditional Owners and Custodians of Country throughout Australia, and their continuing connection to land, sea and community.

We pay our respects to them and their cultures, and to Elders both past and present. © Commonwealth of Australia