Former NDIS provider fined millions over man’s death
A company that cared for an mentally disabled man who died after running into traffic has been hit with a record fine against an NDIS provider.
Aurora Community Care’s “continued and blatant disregard” of its obligations was criticized by a court on Friday following a lawsuit over the death of a 38-year-old mentally disabled man.
Judge Wendy Abraham on Friday fined the provider $2.2 million following the March 2023 incident.
The man left his Queensland home without the knowledge of two maintenance workers and was fatally struck by a car.
Aurora was liquidated shortly after the lawsuit was filed in February 2024, but the Federal Court allowed the lawsuit to continue sending messages to other providers.
The man always needed one-on-one care, but on the night he died, one of the caregivers was asleep and the other was in a separate room and did not notice him leaving the house.
In her ruling, Judge Wendy Abraham said Aurora knew the man would try to leave the premises and there were no locks on its doors preventing him from doing so.
Additionally, the court found, Aurora’s parents repeatedly failed to properly care for the man during the 18 months they were engaged.
“Over a long period of time, Aurora has consistently and flagrantly disregarded its legal obligations as an NDIS provider,” Judge Abraham said.
The company’s liquidators did not defend the case.
The fine imposed on the Commonwealth is subject to the court approving enforcement, and the liquidation of the company is being postponed to allow for the outcome of the case.
The $2.2 million fine comes on top of a $1.9 million fine in January when a customer of the nonprofit Valmar Support Services choked on food.
The judge said Aurora failed to notify the NDIS regulator about the use of chemical restraints more than 50 times.
The man’s access to television and Pepsi was also restricted without consent, preventing him from engaging in harmful behavior.
“(The man’s parents) trusted that Aurora would provide the supervision, support and safe environment their son needed,” Judge Abraham said.
“Aurora did not provide these.”
The regulator said the man’s death was “a tragedy that could have been prevented”.
NDIS Quality and Safeguards Commissioner Louise Glanville said: “This legal action and the significant penalty imposed by the court sends a strong deterrent message to all NDIS providers to take their obligations seriously.”
The NDIS Commission has already banned Aurora’s sole administrator, which is no longer in use.
Mohamed Issak will not be able to participate in certain NDIS activities until November 2034.
Another NDIS provider – LiveBetter – was fined $1.8 million and charged after a woman burned her bath water to death.
Kyah Lucas died at Concord Hospital after being burned over 40 percent of her body in a bathroom in February 2022.
LiveBetter pleaded guilty in the NSW District Court to breaching its essential health and safety duty in relation to Ms Lucas.
The sentencing hearing is expected to be held in March 2026.
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