Three people based in Sydney have been sentenced to multiple years imprisonment for their roles in defrauding $5.8 million from both the National Disability Insurance Scheme (NDIS) and Australian Taxation Office (ATO).

The three Sydney-based people — two men and a woman — were among those arrested in April 2021 under Operation Pegasus, an operation launched by the Australian Federal Police (AFP) in 2020 to investigate suspected fraudulent NDIS providers based in Sydney.

According to the AFP, police alleged at the time they had identified a syndicate operating across three companies to defraud both the NDIS and ATO through false claims, including fraudulent medical reports.

During the search warrants, 8 kilograms of gold bullion, roughly $600,000 in cash and $635,176 worth of cryptocurrency was seized.

The AFP also seized three vehicles with a combined value of about $250,000 and a "significant amount of jewellery".

Facing a Sydney Central District Court earlier on Thursday, the two men — a 38-year-old from Lidcombe and 41-year-old from Ryde — were respectively served sentences of six years and six months, and two years and 11 months imprisonment.

The woman, a 33-year-old from Lakemba, was sentenced to three years and five months imprisonment.

All three have also been ordered to repay the Commonwealth a combined figure of more than $575,700.

"The outcome of this investigation sends a strong message to criminals that fraud against the NDIS will not be tolerated," said AFP Superintendent Kristie Cressy.

"We will continue to work closely alongside our partner agencies to combat fraud and support those who genuinely rely on these services."

ATO Acting Deputy Commissioner Jade Hawkins said this outcome should serve as a warning.

"If you think you can live a lavish lifestyle from illegal gains, it's only a matter of time before you're caught."

Two other men were previously sentenced in 2022 to three months and three years imprisonment respectively.

A sixth person — a 36-year-old man from Chester Hill — remains before the courts and is next scheduled to appear in March, 2025.