‘Claims farmers’: NSW Police bring down fraud ring who filed over $1 billion in fake sexual abuse reports
Fraud squad detectives have charged seven people over a massive scheme involving fake sexual abuse claims to the tune of more than $1 billion.
The alleged offenders have been described as “claims farmers” who brought together big groups of people to lodge fraudulent claims against an array of government bodies for historic sexual abuse in schools and correctional facilities.
Strike Force Veritas was established by NSW Police’s financial crimes squad in February 2024 to investigate alleged fraudulent compensation claims for historical sexual abuse brought against the NSW Department of Communities and Justice (DCJ) and the NSW Department of Education (DoE).
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The so-called “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 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.
Strike force detectives — with assistance from Raptor Squad — executed search warrants in several Sydney locations on Wednesday where they arrested seven people including:
- A 55-year-old man in Girraween
- A 53-year-old woman in Granville
- A 32-year-old man in Pendle Hill
- A 42-year-old man at Gladesville
- A 52-year-old woman in Horsley
- A 35-year-old woman in Pendle Hill
- A 23-year-old man from Mermaid Beach
Six of the offenders charged were either remanded or granted conditional bail to face court in locations around Sydney and the Mermaid Beach man was issued a future court appearance notice.
Some of the charges include dishonestly obtaining financial advantage by deception, accessory before the fact to publish false misleading material to obtain advantage and dishonestly intending to obtain a gain.
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 will continue, with more arrests expected.
Crime Stoppers: 1800 333 000.
