NSW Police charge seven over fraudulent sexual abuse compensation claims

A late TikTok sensation who told stories of his life of crime was allegedly part of a scheme to fraudulently claim compensation for sexual abuse before his death.

A late TikTok sensation who told stories of his life of crime was allegedly part of a scheme to fraudulently claim compensation for sexual abuse before his death.

Russell Manser became a social media hit for giving a real insight into his life carrying out serious crimes and the more than two decades behind bars in NSW, Queensland and the Northern Territory, that followed.

But prior to his sudden death in March last year, police claim Manser had been part of a scheme in which he encouraged people to make fraudulent claims of abuse during their time in juvenile detention or school - in return for him receiving a benefit for each referral.

NSW Police detectives from the Financial Crimes Squad charged seven people over the scheme on Wednesday, including Manser’s son Ky Manser in Queensland.

Late social media star Russell Manser and his son Ky, who police allege were both part of a scheme to fraudulently sexual abuse compensation. Russell Manser died in March 2024. Picture: TikTok

Former bank robber Manser, who became a social media star for his stories about being a criminal and spending time in jail. Picture: Julian Andrews.

Ky, 23, was issued a Future Court Attendance Notice by Queensland Police - assisting NSW Police investigators - on a single charge of publishing false misleading material to obtain advantage, and will be required face Downing Centre Local Court on March 25, 2025.

Court documents detail how police began investigating the scheme - including Russell Manser’s role - in February 2024, a month before his death.

Detectives attached to Strike Force Veritas identified a network of ‘claims farmers’ who allegedly recruited former young offenders, inmates, and public school students, and encouraged them to lodge fraudulent compensation claims for historical child sexual abuse against NSW Department of Communities and Justice and the NSW Department of Education.

In a statement, NSW Police said the suspects reportedly coached claimants and referred them to Sydney law firms, receiving financial benefits for each successful referral.

The illicit proceeds were allegedly known as ‘bum money’ within the criminal syndicates.

Detectives from the Financial Crimes Squad have charged seven people over the alleged scam. Picture: NSW Police

Investigators suspect a significant portion of the $1.3 billion in claims paid out under the scheme were fraudulent.

One of the arrestees. Picture: NSW Police

Shortly before 6am, detectives arrested a 55-year-old man in Girraween. He was later charged with 21 offences, including dishonestly obtaining financial advantage by deception. He was refused bail and was due to appear in Parramatta Local Court on Thursday. Police will allege he was a key ‘claims farmer’ in the operation.

Then at about 7.45am, officers arrested a 53-year-old woman in Granville, charging her with publishing false or misleading material to obtain financial advantage. She was granted conditional bail and will appear in Downing Centre Local Court on March 25.

A 53-year-old woman was arrested at Granville. Picture: NSW Police

Soon after at 7.50am, a 32-year-old man was arrested in Pendle Hill and charged with the same offence. He was also granted conditional bail to appear in Parramatta Local Court on March 12.

Later in the morning at 11.40am, a 42-year-old man presented himself at Gladesville Police Station, where he was arrested and charged with publishing false or misleading material to obtain financial advantage. He was granted conditional bail and is set to appear in Burwood Local Court on March 3.

Shortly after at 12pm, police arrested a 52-year-old woman in Horsley, who was taken to Lake Illawarra Police Station and charged with the same offence. She was granted conditional bail to appear in Downing Centre Local Court on March 25.

In the afternoon, at 2.30pm, detectives arrested a 35-year-old woman in Pendle Hill, charging her with publishing false or misleading material to obtain advantage. She was granted conditional bail and is scheduled to appear in Parramatta Local Court on March 12.

Investigations under Strike Force Veritas continue, with more arrests expected. Picture: NSW Police

Meanwhile, in Queensland, a 23-year-old man from Mermaid Beach was issued a Future Court Attendance Notice for publishing false or misleading material to obtain advantage, with a court date set for March 25 at Downing Centre Local Court.

In addition to the arrests, police also executed a search warrant at a law firm in Sydney where they seized items relevant to their investigation.

Police will allege in court the seven people charged stood to make $3.75 million in fraudulent sexual abuse compensation claims but were uncovered before the claims were paid out.

Investigations under Strike Force Veritas continue, with more arrests expected.

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