The Federal Department of Education and police are investigating a $4.3 million scam targeting vulnerable people through an alleged dodgy vocational and educational training scheme.
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The scheme has hit up to 100 people in Wellington, Dubbo and Bourke.
About eight months ago a “client” list was allegedly stolen or bought from a job network provider.
It is alleged a group “signed up” Newstart recipients, some disability pensioners, mentally handicapped people and Aboriginal youth.
The scheme operates in poor socio-economic demographic sectors where “free” laptops were offered with a signature required to help with educational training.
But, recipients were not told the scheme involved a VET fee and later the Australian Taxation Office put between $21,600 and $23,400 Higher Education Loan Program fees on their tax accounts.
The Federal Minister for Education and Training Senator Simon Birmingham said on Friday his government will go after those responsible.
“We pursue any complaints made about misconduct and anyone found to be rorting the system or breaking the law will be found out and held to account,” Senator Birmingham said.
"Our redesign of Labor's flawed VET FEE-HELP scheme will seek to smash the business models of anyone ripping off taxpayers or targeting vulnerable people, whether they be VET providers, brokers or data miners,” he said.
Ron Moore, a former contracted Australian treasury auditor based in Wellington, who has been helping victims said it was a breathtaking breach of trust.
“They didn’t tell people there was a VET fee and the ATO put $21,600 or $23,400 HELP on their tax accounts.
It is understood debt for many victims had blown out to $42,000.
‘’I am speaking out because I am deeply concerned about the number of others who may be caught up in this,” Mr Moore said.
Senator Birmingham said the rorts in the educational industry must stop.
‘’The Turnbull Government is also working closely with the agencies like the ACCC and AFP to stamp out unethical and unscrupulous practices in the industry so we can help rebuild trust in the many vocational education providers who do the right things by their students.’’