Bundles of cash allegedly found in underwear drawer of man accused of $3.5m fraud

The director of a National Disability Insurance Scheme service provider has been accused of using fraudulent claims to help launder millions of dollars of dirty cash after police allegedly found firearms and bundles of money in an underwear drawer.

Billal Chami, 31, faced Downing Centre Local Court on Tuesday after a raid on his south-west Sydney home in December.

The man is accused of withdrawing cash from various bank accounts over a three-year period to launder $3.5 million suspected to be proceeds of crime.

The withdrawn money allegedly came from fraudulent NDIS claims, including services which were not provided to scheme participants.

Chami’s high-profile solicitor, Mostafa Daoudie, told the court the NDIS provider was born in Australia, lived with his mother and sisters in Villawood, and had every opportunity to flee since December, but instead showed up “to face these charges”.

The court heard Chami’s company allegedly received $3.7 million and withdrew $3.6 million in cash.

Some NDIS participants signed up to his company allegedly told investigators they received no services, while others allegedly received kickbacks for keeping quiet.

Police allegedly found $35,000 in cash in an underwear drawer during the December raid at the man’s Villawood unit, along with an air rifle and two gel-blaster pistols.

He has been charged with dealing with money reasonably suspected of being proceeds of crime.

The NDIS quality and safeguards commission intends to ban the man and the provider he directs from the scheme while proceedings are ongoing.

Concerns over the role of fraud in the ballooning cost of the NDIS prompted plans for a 40-fold boost to maximum fines, with penalties up to $16.5 million, in November.

That same month, fraud investigators conducted more than 33 raids in four states, including NSW, with 43 terabytes of data being seized.

AFP Detective Inspector Aidan Milner said fraud of Commonwealth programs was a key focus area for the agency and its partners.

“We will be relentless in pursuing any people who seek to exploit our welfare system,” Milner said.

“The AFP will not stop in its pursuit of these groups who chop and change companies in a cynical effort to hide their criminal behaviour from law enforcement.”

National Disability Insurance Agency chief executive Graeme Head said participants in the scheme needed protection.

“Most providers do the right thing, but for the small number who don’t, expect a knock on the door.”

Magistrate Susan Horan on Tuesday imposed bail conditions on Chami including effectively banning him from using a smartphone with encrypted apps.

She ordered him not to contact a list of 26 witnesses and to hand over his passport.

Chami covered his face with his hand as he walked from the court with Daoudie, refusing to comment when asked if he had allegedly stolen money from Australians with disabilities.

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