A woman is arrested in Horsley by a Strike Force Veritas officer. Photo: NSW Police.
A Horsley woman is among seven people arrested across the state following the discovery of an alleged fraudulent sexual abuse compensation claims scheme.
Detectives from the Financial Crimes Squad established Strike Force Veritas in February 2024 to investigate allegedly fake compensation claims for historical sexual abuse brought against the NSW Department of Communities and Justice and the NSW Department of Education.
More than $1 billion in claims has been paid out to date; not all of these payouts were for allegedly fraudulent claims.
“During the investigation, detectives identified several ‘claims farmers’ at the centre of the scheme,” the NSW Police spokesperson alleged.
“These individuals allegedly approached adults who were former young offenders, inmates, and public school students, encouraging them to file fraudulent compensation claims for historical child sexual abuse while in care.
“The claims farmers then coached these prospective claimants on how to make fraudulent claims through various Sydney law firms, receiving a benefit for each referral”, the NSW Police spokesperson alleged.
“The proceeds were reportedly referred to as ‘bum money’ within the criminal syndicates, and detectives suspect a significant portion of the $1.3 billion worth of claims are fraudulent.”
About 12:05 pm on Wednesday (12 February) a 52-year-old woman was arrested in Horsley.
She was taken to Lake Illawarra Police Station where she was charged with publish false or misleading material to obtain advantage.
The woman was granted conditional bail to appear in Downing Centre Local Court on 25 March.
About 6:05 am on Wednesday (12 February) strike force detectives – with assistance from Raptor Squad – executed a search warrant in Girraween where they arrested a 55-year-old man.
The man was taken to Granville Police Station, where he was charged with 21 offences, including nine counts of dishonestly obtain financial advantage by deception, eight counts of accessory before the fact to publish false or misleading material to obtain advantage, three counts of incite to commit publish false or misleading material to obtain advantage and dishonestly intend to obtain a gain.
He was refused bail to appear in Parramatta Local Court on Thursday (13 February).
Police will allege in court the 55-year-old man was a claims farmer in the alleged scheme.
About 7:45 am, strike force detectives arrested a 53-year-old woman in Granville. She was taken to Auburn Police Station, where she was charged with publish false or misleading material to obtain advantage.
The woman was granted conditional bail to appear in Downing Centre Local Court on 25 March.
About 7:50 am, a 32-year-old man was arrested in Pendle Hill. He was taken to Granville Police Station, where he was charged with publish false or misleading material to obtain advantage.
The man was granted conditional bail to appear in Parramatta Local Court on 12 March.
About 11:40 am, strike force detectives arrested a 42-year-old man at Gladesville Police Station. He was charged with publish false or misleading material to obtain advantage.
The man was granted conditional bail to appear in Burwood Local Court on 3 March.
About 2:30 pm, detectives arrested a 35-year-old woman in Pendle Hill. She was taken to Granville Police Station, where she was charged with publish false or misleading material to obtain advantage.
The woman was granted conditional bail to appear in Parramatta Local Court on 12 March.
With assistance from Queensland Police, a 23-year-old Mermaid Beach man was issued a future court attendance notice for publish false or misleading material to obtain advantage, to appear in Downing Centre Local Court on 25 March.
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.
A NSW Police spokesperson said they believed several additional law firms were involved.
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,” the NSW Police spokesperson said.
“NSW Police support legitimate claimants, and they deserve to be compensated.
“Unfortunately, this system has been exploited by an organised criminal network. This is disrespectful to legitimate victims.
“The threshold to access this claims system is low, and that was done intentionally to support legitimate victims.”
Anyone with information that may assist investigators is urged to contact Crime Stoppers on 1800 333 000. Information is treated in strict confidence.
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