Media Release
Three years prison for $195,000 welfare fraudster
9 February 2008
A tip off from a member of the public has helped Centrelink fraud investigators uncover a massive $195,000 identity fraud scam, Minister for Human Services, Senator Joe Ludwig said today.
Gai Misters, from northern NSW, was sentenced to three years imprisonment today after pleading guilty to using a false identity to steal more than $195,000 in Centrelink payments between August 1984 and April 2006.
Misters will be eligible for parole after serving twelve months in prison, to be released on a $1,000 two-year good behaviour bond. She was also ordered to repay Centrelink the remaining money she owes in full - $192,529.
Senator Ludwig said, “Today’s tough sentence sends the message very clearly that welfare fraud is wrong and the consequences are very serious. This was a deliberate and calculated effort to rip off taxpayers.”
“The sentencing should really serve as a strong warning to others who are thinking about rorting the system – it’s only a matter of time before you get caught. Not only will you face the prospect of prison time and court fines, but you’ll have to repay every dollar.”
“Most people naturally get annoyed when they hear about a case like this where someone cheats the system to take more than their fair share.”
“Those who commit these offences undermine the system and hurt those with genuine needs. We need to make sure that taxpayer dollars go to right people to get the right payment, at the right time,” Senator Ludwig said.
The Lismore District Court heard Misters was in her 40’s when she started receiving Centrelink payments in her real name, as well as in a created identity. Centrelink was initially alerted to the fraud after a tip-off from a vigilant member of the public.”
“Centrelink fraud investigators then undertook an extensive investigation to establish the extent of the offence. This included optical surveillance and the execution of a search warrant at the customer’s home by the Australian Federal Police, said Senator Ludwig.”
Senator Ludwig said Centrelink follows up every tip-off received.
“Identity fraud is a crime that is becoming more commonplace, and it makes it easier for criminals to target the welfare system. This case highlights the threat to Commonwealth revenue – it went on undetected for more than 20 years and could have kept on going for years more.”
“That’s why I’m especially calling on members of the public who suspect a false identity is being used to collect welfare payments to ring in.”
Members of the public can report suspected cases of welfare fraud by calling the Australian Government Services Fraud Tip-off Line on 13 1524 or visiting the Centrelink website at www.centrelink.gov.au.
N.B – Pixilated optical surveillance of this case (and digital stills) are available.
Media Contact: Barb Barrett—0448 469 787.