Alleged fake sex abuse scam revealed as multiple people arrested

A group of people have been arrested after they allegedly stood to make millions from encouraging people to make false historical sexual abuse claims.

A group of people stood to make nearly $4m from encouraging former inmates and public school students to make false compensation claims for historical sexual abuse, according to police.

A strike force was established in February last year to investigate alleged fraudulent claims of historical child sexual abuse, which were brought against both the NSW Department of Education and the NSW Department of Communities and Justice.

Police allege the “claims farmers” approached adults who were formerly inmates, public-school students and young offenders and encouraged them to file fraudulent compensation claims for child sexual abuse while in care.

A group allegedly encouraged former inmates and public school students to make false compensation claims for historical sexual abuse while in care. Picture: NSW Police.

Police claim the adults were then coached by the alleged claims farmers – who received a benefit from each referral – on how to make fraudulent claims through several Sydney law firms.

The compensation claims scheme has paid out more than $1bn claims to date; however, detectives now suspect a significant portion of the claims are fraudulent.

ARRESTS

A 55-year-old man, who detectives will allege in court was a claims farmer, was arrested following a search warrant in Girraween, in western Sydney, about 6.05am on Wednesday.

He was charged with 21 offences, including nine counts of dishonestly obtaining a financial advantage by deception, eight counts of accessory before the fact to publishing false misleading material to obtain advantage, three counts of inciting to commit publish false misleading material to obtain advantage and dishonestly intending to obtain a gain.

The adults were allegedly coached by the claims farmers on how to make fraudulent claims through law firms. Picture: NSW Police

He was refused bail and is set to front Parramatta Local Court on Thursday.

A 53-year-old woman was also arrested on Wednesday morning and charged with publishing false misleading material to obtain advantage.

She was granted conditional bail to front Downing Centre Local Court on March 25.

A 32-year-old man was granted conditional bail after he was charged with publishing false misleading material to obtain advantage, and is set to front Parramatta Local Court on March 12.

A 42-year-old man was also charged with publishing false misleading material to obtain advantage and was granted conditional bail to appear in Burwood Local Court on March 3.

A 52-year-old woman facing the same charge was granted conditional bail to front Downing Centre Local Court on March 25, while a 35-year-old woman also charged with publishing false misleading material to obtain advantage was granted conditional bail to front Parramatta Local Court on March 12.

The claims farmers allegedly received a benefit for each referral. Picture: NSW Police.

A 23-year-old Mermaid Beach man was issued a future court attendance notice for allegedly publishing false misleading material to obtain advantage and is set to front Downing Centre Local Court on March 25.

Police also seized items from a Sydney law firm as part of the investigation.

Police are set to allege in court the seven people charged were on track to make $3.75m in fraudulent sexual abuse compensation claims; however, they were caught before the claims were paid out.

More arrests are expected.

A NSW Department of Education spokesman said the allegations were “deeply disturbing” and police had their “full co-operation”.

“We urge any victim of abuse to contact police as student safety is our priority,” the spokesman said.

“As this is an ongoing police investigation, it would be inappropriate to make any further comment.”

Originally published as Alleged fake sex abuse scam revealed as multiple people arrested