Childcare centre owners charged with fraudulently claiming millions in subsidy, stimulus payments

A Melbourne couple has been accused of registering "phantom children" at a childcare centre they operate in order to claim millions of dollars in government payments they are not entitled to.

Key points:

Federal Police allege $15 million in childcare and COVID stimulus money was fraudulently claimed

Five people face charges after raids in Victoria and New South Wales

Police allege the couple behind the scheme used the money to buy luxury cars and property

The Australian Federal Police (AFP) have charged Ola Ouda, 42, and Amjad Shehada, 47, both from Doncaster East, with serious fraud.

They face up to 10 years in prison if convicted.

Three other people, including two childcare educators, have also been charged with serious fraud in the wake of AFP officers conducting raids on several properties in Victoria and New South Wales.

AFP Commander Todd Hunter said investigators spoke to more than 70 educators and parents during the course of their investigation and it was likely more people would be charged.

"It is alleged the registered provider of the Melbourne family daycare business, together with a number of co-accused, defrauded the Commonwealth-funded childcare subsidy payments by registering children who did not attend childcare to make false claims," he said.

"Phantom children, if you will."

The alleged fraud, which authorities say raked in $15 million, included exaggerating the hours some children attended child care or before- and after-school care.

The AFP said the couple's business was one of, if not the biggest, claimant and receiver of childcare supplement payments in the country.

https://www.abc.net.au/news/2020-11-28/childcare-centre-owners-charged-with-serious-fraud/12931050