Alleged occupational therapist fraudster has court bid fall apart

An occupational therapist charged with allegedly defrauding the Commonwealth government of millions of dollars has failed in her bid to block the Australian Federal Police from investigating her.

The Federal Court tossed an urgent application by Angela Rainbow to restrain the Australian Federal Police from investigating fraud allegations until she has been “offered procedural fairness” and sufficient time to respond to allegations in a notice to show cause.

Rainbow was charged by police in September for allegedly submitting $7 million in fraudulent claims to the Department of Veterans’ Affairs.

According to police, the investigation was commenced after the department reported suspicions about the “abnormally high volume and value of claims” submitted by Rainbow’s Mount Hawthorn business.

Justice Natalie Charlesworth was not satisfied police had an obligation to afford procedural fairness when proceeding with an investigation.

The court was also unwilling to grant Rainbow’s request to restrain the Department of Veterans’ Affairs from reporting activity to police.

Rainbow appeared before the court as a prospective applicant and in the absence of the department of police, who were not notified of the action.

In addition to the investigation bids, Rainbow invited the court to restrain the department from withdrawing her and her employee’s entitlement to submit invoices through its usual online software.

She also submitted the court should restore her access because she has been made to submit manual requests and verify the claims for services.

The court was told the matter was urgent because Rainbow believed her provider status could be revoked before she has had the chance to respond to allegations contained in a notice to show cause letter.

In a letter to the department, Rainbow’s lawyer had already asked that she be given until 21 November to provide her response. Rainbow said the lawyer was unaware of the urgent Federal Court applications.

Justice Charlesworth said she did not consider that the application should be granted on an urgent basis before the start of any prospective proceeding in the absence of the department and the Australian Federal Police.

“On the information presently before me and having regard to the notice, I am not presently satisfied that there is an imminent threat of a breach of procedural fairness at all,” Justice Charlesworth said.

Justice Charlesworth also noted Rainbow has chosen to use “about a week” of her lawyer’s requested extension on this application.

“That is her choice. However, that time could have been spent and deployed in responding to the allegations made on the notice,” she said.

Rainbow’s material indicated proceedings will commence in 14 days.

The case: Rainbow, in the matter of an application by Rainbow [2025] FCA 1359.