Fraud Squad Charges Another in Abuse Scam

Detectives from the Financial Crimes Squad have charged an additional man over an alleged fraudulent sexual abuse compensation claim worth $300,000 under Strike Force Veritas.

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 made are fraudulent.

Thirteen people have previously been charged and remain before the courts.

Following extensive inquiries, about 8.25am today (Tuesday 17 February 2026), strike force detectives arrested a 47-year-old man at Bankstown Police Station.

He was charged with publish etc false misleading material to obtain advantage relating to the fraudulent claim.

The man was granted strict conditional bail to appear in Bankstown Local Court on Thursday 19 March 2026.

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