Detectives from the Financial Crimes Squad have charged seven people following the discovery of fraudulent sexual abuse compensation claims in a scheme which has paid out over $1 billion in claims to date.
Strike Force Veritas was established by State Crime Command'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).
During the investigation, detectives identified several 'claims farmers' at the centre of the scheme. 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 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.
Following extensive inquiries, about 6.05am yesterday (Wednesday 12 February 2025), 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 etc by deception, eight counts of accessory before the fact to publish etc false misleading material to obtain advantage, three counts of incite to commit publish etc false misleading material to obtain advantage and dishonestly intend to obtain a gain.
He was refused bail to appear in Parramatta Local Court today (Thursday 13 February 2025).
Police will allege in court the 55-year-old man was a claims farmer in the scheme.
About 7.45am, strike force detectives arrested a 53-year-old woman in Granville. She was taken to Auburn Police Station, where she was charged with publish etc false misleading material to obtain advantage.
The woman was granted conditional bail to appear in Downing Centre Local Court on Tuesday 25 March 2025.
About 7.50am, a 32-year-old man was arrested in Pendle Hill. He was taken to Granville Police Station, where he was charged with publish etc false misleading material to obtain advantage.
The man was granted conditional bail to appear in Parramatta Local Court on Wednesday 12 March 2025.
About 11.40am, strike force detectives arrested a 42-year-old man at Gladesville Police Station. He was charged with publish etc false misleading material to obtain advantage.
The man was granted conditional bail to appear in Burwood Local Court on Monday 3 March 2025.
About 12.05pm, a 52-year-old woman was arrested in Horsley. She was taken to Lake Illawarra Police Station where she was charged with publish etc false misleading material to obtain advantage.
The woman was granted conditional bail to appear in Downing Centre Local Court on Tuesday 25 March 2025.
About 2.30pm, detective arrested a 35-year-old woman in Pendle Hill. She was taken to Granville Police Station, where she was charged with publish etc false misleading material to obtain advantage.
The woman was granted conditional bail to appear in Parramatta Local Court on Wednesday 12 March 2025.
With assistance from Queensland Police, a 23-year-old Mermaid Beach man was issued a Future Court Attendance Notice (CAN) for publish etc false misleading material to obtain advantage, to appear in Downing Centre Local Court on Tuesday 25 March 2025.
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.
Anyone with information that may assist investigators is urged to contact Crime Stoppers: 1800 333 000 or https://nsw.crimestoppers.com.au. Information is treated in strict confidence. The public is reminded not to report information via NSW Police social media pages.
