Three charged over alleged Islamic school fraud

Posted Fri Jun 27, 2008 2:33pm AEST
Updated 10 hours 51 minutes ago

Islamic College, Dianella

Islamic College, Dianella (ABC News)

The Director and two Principals of Islamic Colleges in Perth have been charged with fraud offences totalling more than $3 million.

The charges follow a lengthy police investigation by the Major Fraud Squad, including raids at schools in Thornlie, Kewdale and Dianella in January 2007.

Police allege the men had been creating false student enrolments to secure State and Federal Government subsidies.

Inspector Arno Albrecht says the state and federal agencies seeking student numbers operated on an honesty system.

"The defrauding of the government agencies was simply putting forward false numbers of students and as a result of that they obtained the subsidised funding," he said.

The charges relate to the 2005 and 2006 student subsidised funding applications.