Sydney, Australia – NSW Police have arrested seven people, including alleged ringleader Fotis Antonios, over a billion-dollar fraud scheme involving fake sexual abuse compensation claims.
Authorities say a crime syndicate coached former inmates, young offenders, and students to file fraudulent claims against the NSW Justice and Education departments, pocketing payouts meant for genuine victims.
Massive Investigation Uncovers Syndicate’s Tactics
On Thursday, March 2025, heavily armed police units, including the anti-gang squad Raptor, conducted raids across Sydney and the Gold Coast, arresting four men and three women linked to the operation.
Police allege Antonios, 55, from Girraween, was the syndicate’s leader, making hundreds of thousands, if not millions, of dollars. A 23-year-old man arrested in Mermaid Beach, Queensland, is believed to be his second-in-command.
According to Detective Superintendent Gordon Arbinja, the group recruited individuals to submit fraudulent compensation claims for historic child abuse, receiving at least $2,200 per case.
Fake Claims & Law Firm Involvement
Investigators have identified nearly 4,000 strikingly similar claims, with multiple law firms now under scrutiny for potential involvement. The fraudsters allegedly split the payouts with the claimants, while some firms facilitated the scam.
Authorities believe the criminals could have profited over $3.75 million had all the claims been approved. A police raid on one law firm has already taken place, with more investigations underway.
“Bum Money” & Exploiting the System
The scam, internally referred to as “bum money”, exploited weaknesses in compensation schemes designed to assist real victims.
Alarmingly, one-third of all inmates at Cooma Prison have submitted claims. Police are now reviewing these cases and working with government agencies to tighten claim regulations.
Legal Action & Ongoing Investigation
Antonios has been charged with 21 offenses, including fraud, falsifying documents, and incitement. The six other suspects, including a 53-year-old woman from Granville, a 32-year-old man and 35-year-old woman from Pendle Hill, a 42-year-old man from Gladesville, and a 52-year-old woman from Horsley, are expected to face court next month.
Superintendent Arbinja emphasized that while legitimate victims deserve justice, this criminal network took advantage of the system, highlighting the need for stricter controls.
Authorities believe this is just the beginning, with more arrests and law firm investigations likely in the coming weeks.
