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Ignored tip-off could have stopped $4m day care scam

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Ray Hadley has revealed a large-scale day care scam could have been stopped almost 18 months ago but a federal department ignored a tip-off.

18 people have this week been arrested after a family day care chain was allegedly caught claiming government rebates for children who don’t actually exist.

Police raided 22 properties belonging to Red Roses Family Day Care, after allegedly uncovering the $4-million scam.

Investigators say up to 150 parents allegedly sold their children’s identities to the business, which operates across Sydney and Wollongong.

The Ray Hadley Morning Show has exclusively revealed an email sent to the Department of Education and Training’s tip-off line in January 2018.

The anonymous tipster claimed no children had ever been dropped off at a particular centre in Fairfield.

The federal government department responded within just a few hours, claiming there was no wrongdoing.


“So they answered appropriately within four and half hours, but they wouldn’t have had a chance to send someone out to see whether infact it was a registered office,” says Ray Hadley.

“If this is the way they deal with this sort of stuff it’s beyond my comprehension.”

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Financial Crimes Squad Commander Linda Howlett tells Chris Smith the information to police didn’t come from a tipoff but rather from “other investigations we’d conducted.”

“We’ve been looking at the company for about the last eight to 10 months.

“There should be further arrests in the next couple of weeks.”

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