Seven people will face court over what police say is a fake sex abuse claims scheme that's paid out more than $1 billion.
A strike force was established in February last year to investigate alleged fraudulent compensation claims for historic sexual abuse brought against the NSW Department of Communities and Justice and the NSW Department of Education.
Investigators believe they identified "claims farmers" who are alleged to have approached adults who were former young offenders, inmates, and school students, to encourage them to file fake claims for historic child sex abuse.
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The same alleged "claims farmers" are then alleged to have coached the claimants on how to pursue those claims through various Sydney law firms, allegedly receiving a benefit for each referral.
NSW Police Detective Superintendent Gordon Arbinja said "claims farmers" would receive at least $2200 per claim submitted through a law firm.
"There were several claims farmers that were spruiking for business they coached and incited several people to make false claims through these entities," Arbinja alleged.
"This group held another 100 applications so police intervention yesterday prevented at least $30 million being paid."
Police say the proceeds were referred to as "bum money" within the group, and investigators allege a "significant portion" of $1.3 billion worth of claims are fake.
"I believe using my core sample, a...
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