Seven people have been charged with encouraging others to do false sexual abuse of children to get money from a compensation schedule.
The so -called 'claims who reportedly approached adults that have spent time in youth prisoners and former public school students who encourage them to submit false claims about historical sexual abuse of children.
They are accused of coaching them when submitting fraudulent requests at the regulation through various law firms in Sydney and are said to have received an advantage for referring the claimants.
A 55-year-old man will be confronted on Thursday with the court accused of 21 fraud-offs.
Six others will be confronted with the court in March after they have been arrested on Wednesday in a series of raids in West Sydney and on the Gold Coast of Queensland.
A law firm in Sydney was also robbed with items that were seized by researchers, who had already investigated the alleged fraud for a year.
The police believe that a 'considerable part' of the claims were fraudulent and the group was to win around $ 3.75 million if the alleged false claims were paid.
More arrests are expected as the investigation continues, the NSW police said in a statement.

Fraudsters are reportedly encouraged false compensation claims of abuse in prisons and schools

The police expect to make more arrests about alleged fraudulent claims for sexual abuse of children
The claims of sexual abuse were made against the Ministry of Justice Minister and the Education Department.
In 2018, a National Redess schedule was set up after the Royal Commission in institutional answers to the sexual abuse of children to give counseling, personal answers and payments to people who have experienced an institutional abuse as a child.
Government services, churches, sports groups and others belong to the institutions that have joined the scheme, which is open to claims until mid -2027.
More than 44,000 applications were submitted to the scheme from July, which had paid more than $ 1.4 billion to 15,000 applicants whose claims were completed; An average amount slightly less than $ 100,000 each.
Lifeline 13 11 14
Children's helpline 1800 55 1800 (for people from 5 to 25 years old)
1800 Respect (1800 737 732)
National Sexual Abuse and Redress Support Service 1800 211 028