Victorian chilli sauce fraudster caught running business while claiming compensation

A WorkSafe investigation found what years of certification checks did not

Victorian chilli sauce fraudster caught running business while claiming compensation

Workers Compensation

By Roxanne Libatique

A Victorian man who collected more than $117,000 in workers’ compensation payments while running a food business has been convicted of fraud, in a case that points to persistent vulnerabilities in how insurers and compensation schemes identify claimants who are working while receiving benefits.

Conviction and sentence

Gary Janson, 58, appeared before the Melbourne Magistrates’ Court on April 29 and pleaded guilty to one count of fraudulently obtaining payments. The court issued a restitution order for $117,121.41 and placed Janson on an 18-month Community Corrections Order, which requires him to complete 220 hours of unpaid community work. Janson first lodged a workers’ compensation claim in June 2014 for a shoulder injury. He began receiving weekly payments at that time and continued to do so for nearly a decade.

WorkSafe Victoria’s investigation found that in October 2021 – more than seven years into his claim – Janson had established a chilli sauce business. He sold products through an online store and at markets, shows, and festivals across Victoria and in other states. Over roughly two years of operating the business, Janson kept submitting statutory certificates stating he had no capacity to work and had not done so.

When WorkSafe terminated his payments in October 2023, Janson told investigators the business was his son’s venture and that his shoulder injury still prevented him from lifting his arm. The claim did not hold up under scrutiny. Business registration records identified Janson as the sole director, secretary, and shareholder. The company’s own website named him as owner. Investigators also obtained surveillance footage showing him erecting and dismantling market stalls, moving heavy boxes, and using both arms without apparent restriction over sustained periods. Jane Barker, acting WorkSafe executive director of integrity, risk, and resilience, said the case reflected a pattern the regulator takes seriously. “It’s disappointing to see the blatant dishonesty shown by this worker over multiple years. 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,” Barker said.

A national detection platform takes shape

The Janson case is unfolding as the industry works to close the gap between fraud being committed and fraud being caught. In November 2025, the Insurance Council of Australia (ICA) announced it would build a national fraud detection and investigation platform in partnership with AI firm Shift Technology and data company EXL. The platform is being developed through the ICA’s Insurance Crime Intelligence Network of Australia (ICINA), with motor insurance set as the first line of business to be brought onto the system. The platform will give member insurers a mechanism to flag suspicious claim activity in real time, share data on known fraud patterns across the market, and run joint investigations into repeat offenders. Data shared through the system will be subject to privacy-preserving protocols, role-based access, and end-to-end encryption.

Cost and detection remain key industry concerns

The Janson matter involved a single claimant over a two-year window of undisclosed activity. But the mechanics of the case – routine certification, no cross-referencing of business registrations, reliance on surveillance to confirm what documentary records could not – reflect the detection gaps that allow fraud to persist in compensation and insurance systems. WorkSafe’s Barker noted that Janson had several points at which he was required to disclose his employment status and did not.

The case reinforces that stronger cross-agency data sharing and real-time monitoring are central to reducing the lag between fraudulent activity beginning and being identified. The ICA’s platform, once operational, is not limited to motor claims. ICINA has indicated the system is designed to expand across other lines of business as the network matures - a development that could have direct implications for workers’ compensation scheme managers looking to strengthen their own fraud identification capabilities.

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