Sydney: Australia’s peak fertility body, the Fertility Society of Australia and New Zealand, has revealed a suspected multi-million-dollar fraud involving a former contractor, triggering legal action and intensifying scrutiny of how the country’s IVF sector is regulated.
The organization believes more than $3 million was allegedly transferred from its accounts into a personal bank account over a five-year period. The suspected fraud occurred between 2018 and 2023 and was uncovered during an internal financial review.
According to information shared with members, the individual initially worked as part of an external service provider before continuing as an independent contractor. During this time, the contractor allegedly processed payments described as supplier expenses. Many of those transactions are now believed to have been falsely classified.
FSANZ said some payments may still prove legitimate, but their validity remains unclear. The organization acknowledged that weaknesses in internal financial oversight allowed the alleged misconduct to continue undetected for years.
The disclosure came during the society’s annual general meeting, attended by fertility specialists, researchers, and senior figures in reproductive medicine. Members were informed that the matter is being treated as serious and ongoing.
FSANZ confirmed it commenced legal action in May 2024 in the Victorian County Court in an effort to recover the funds. Lawyers have sought access to the contractor’s financial records dating back to 2005, suggesting investigators are examining whether irregularities pre-dated the five-year period already identified.
Despite the scale of the alleged fraud, the society has not yet referred the matter to police. It said it is prioritizing civil recovery of the funds while legal proceedings remain active.
FSANZ also stated that the alleged losses have not placed the organization at risk of insolvency and that its operations continue without disruption.
The scandal has emerged at a sensitive moment for Australia’s fertility industry. FSANZ funds and operates the Reproductive Technology Accreditation Committee, the body responsible for accrediting IVF clinics nationwide.
Health ministers from across Australia are expected to review the current self-regulatory model following a series of IVF errors in recent years, including embryo and sperm mix-ups that have shaken public confidence.
Federal Health Minister Mark Butler has already questioned whether an industry valued at roughly $800 million a year should continue regulating itself.
Governance experts say the alleged embezzlement raises broader concerns about financial controls within medical and professional bodies that manage public trust and sensitive health services.
FSANZ has said it is reviewing its governance frameworks and strengthening internal safeguards. The organization insists it remains committed to high ethical standards and to supporting safe, transparent fertility care across Australia and New Zealand.
As legal action continues, the case is likely to influence wider policy decisions about how IVF services are monitored and regulated, at a time when scrutiny of the fertility sector has never been higher.