A Victorian man has been charged with stealing more than $400,000 from about 200 participants in the National Disability Insurance Scheme.
Police allege the 36-year-old used the money stolen from disabled Australians to buy a BMW 7-Series limousine, a Toyota HiLux and designer clothing and jewellery.
He was charged with attempting to cause and causing a loss to another person, and multiple counts of dealing in proceeds of crime.
If convicted, he faces a maximum of 20 years behind bars.
His arrest in Melbourne this week is the first by a task force established in July to stamp out fraudsters ripping off the NDIS.
"Let this be a warning that we will continue to come down hard on anyone who thinks they can defraud the NDIS or other welfare agencies," Social Services Minister Paul Fletcher said on Thursday.
The agency tasked with delivering the NDIS has contacted participants impacted by the alleged fraud, replacing money said to have been swindled from their disability support plans.
Home Affairs Minister Peter Dutton said it was "pretty hard" to comprehend the alleged crime.
"People should be put on notice that the NDIS is designed to provide support to people with a disability, with profound disabilities, a society like ours proudly takes care of those people," he told Sydney radio station 2GB.
"But we'll come down like a tonne of bricks on people who are defrauding that system or ripping off people with a disability."
The man was bailed to appear before the Melbourne Magistrates Court on Friday.
