The 33-year-old, who is believed to have links to criminal syndicates, was arrested by the Australian Federal Police on Thursday evening at a Sydney building site.
His arrest was a day after the government announced an overhaul of the National Disability Insurance Scheme to rein in billions in spending on about 760,000 recipients.
He came to the attention of the Fraud Fusion Taskforce in January 2024 after investigators suspected he was fraudulently making claims as a registered NDIS provider.
Authorities uncovered evidence in June 2024 allegedly linking the man to 80 claims submitted against 22 unwitting NDIS participants over a three-month period.
The claims totalled more than $1.5 million for services that were not provided.
The AFP said it was committed to pursuing organised crime figures to "stop targeted fraud" that fleeces "honest and hard-working Australians".
"Members of our community have allegedly been targeted, exploited and threatened by groups looking to fill their own pockets and steal public funds set aside for Australians who are reliant on this support," Acting Commander Timothy Underhill said.
The man was charged with a combined 32 fraud-related offences, with the maximum penalty for the offences 10 years in jail, and was to face court on Thursday.
He was previously slapped with a two-year ban in August 2024 prohibiting him from operating, undertaking or providing NDIS activities or services.
The arrest was described as sending a clear message.
"You will be caught and you will face the full force of the law," an NDIS spokesperson said.
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