In a shocking revelation, investigations into fraudulent child sexual abuse compensation claims have revealed that one third of inmates at Cooma Correctional Centre have submitted allegedly deceitful applications.
This discovery is part of a wider investigation into a sophisticated crime syndicate alleged to have coached individuals to falsely claim compensation under schemes including the National Redress Scheme.
The alleged operation was uncovered following the arrest of seven individuals, including the alleged masterminds of the scheme — 23-year-old Ky Manser from the Gold Coast and a 55-year-old man from Sydney.
PHOTO: Seven people have been charged following the discovery of alleged fraudulent child sexual abuse compensation claims – Supplied NSW Police.
Detective Superintendent Gordon Arbinja commented, “This is just the tip of the iceberg. We’ve got a very, very large problem here.”
Superintendent Arbinja further explained the operation’s mechanics: “Detectives revealed there were several claims farmers that were spooking for business… They coached and incited several people to make false claims.”
The so-called “claims farmers” would allegedly submit these falsified claims to Sydney law firms to receive a kickback of $2,200 per claim, the profits referred to as ‘bum money’.
The Superintendent went on to say, “I can’t say whether they (law firms) knew they (claims) weren’t true, that’s still under investigation.
“I can say now that on a typical claim, a $300,000 claim, which is average in this scheme, the law firm would take at least a half of that in fees.”
In light of these revelations, police executed search warrants at a law firm in Sydney, seizing documents that may implicate other firms.
PHOTO: Police arrest one of the seven, a 52-year-old woman in Horsley.
Superintendent Arbinja reassured legitimate victims, stating, “The New South Wales Police support legitimate victims. They should be compensated, and that’s why the system was introduced in the first place.”
However, he pointed out the system’s vulnerabilities, noting its exploitation by the syndicate due to its low threshold, which was originally set in good faith to aid genuine victims.
“It’s a low threshold… So what we intend to do, is work with our state partners, and we’ve had dialogue with the government to strengthen the scheme.”
The impact of such fraudulent claims has been substantial, with the scheme reportedly outlying nearly $1.3 billion. Superintendent Arbinja highlighted the severity of the situation: “All I can talk about is the ones that I’m looking at, and I can tell you now the overwhelming majority, if not all, were fraudulent.”
Investigations have been underway since February last year, and in a decisive move, police intervention prevented a further $30 million at least, from being paid in dubious claims.