Victorian Worker Ordered to Repay $117k After Compensation Fraud Exposed

A 58-year-old man has been ordered to repay $117,121.41 in workers’ compensation after being convicted of fraud in the Melbourne Magistrates’ Court, highlighting the serious consequences of dishonesty within the workers’ compensation system.

Gary Janson was sentenced on Wednesday 29 April after earlier pleading guilty to a single charge of fraudulently obtaining payments. In addition to the restitution order, he was convicted and placed on an 18-month Community Corrections Order, requiring him to complete 220 hours of unpaid community work.

The court was told Janson began receiving weekly compensation payments in June 2014 after lodging a claim for a work-related shoulder injury. These payments are designed to support injured workers while they are unable to safely perform their duties, and rely on accurate disclosure consistent with an employer’s WHS management systems and policies.

A subsequent WorkSafe investigation found that in October 2021 Janson had started a chilli sauce business, selling products online and at markets, shows and festivals across Victoria and interstate. Despite this, he continued to submit certificates declaring he had not worked and had no capacity to work.

Over this period, he received $117,121.41 in weekly compensation payments before they were terminated in October 2023. When notified of the termination, Janson claimed the business belonged to his son and insisted he could not lift his arm sufficiently to work.

However, official records showed Janson was the sole director, secretary and shareholder of the company, and the business website listed him as the owner. Surveillance footage also captured him setting up and packing up market stalls, lifting and carrying large boxes, and raising both arms for extended periods.

Acting WorkSafe Executive Director of Integrity, Risk and Resilience, Jane Barker, said there were multiple opportunities for the worker to disclose that he was working while receiving compensation.

"It’s disappointing to see the blatant dishonesty shown by this worker over multiple years," Ms Barker said. "Exploiting a system that supported you when you were unable to earn an income is not only selfish – it’s a criminal offence that will be met with serious consequences."

This case underlines the importance of robust workplace policies, procedures and WHS management systems that emphasise accurate reporting, ethical conduct and compliance with workers’ compensation requirements. Employers and workers alike should ensure their obligations are clearly documented and understood, supported by appropriate policies and procedures such as those available from specialist providers.