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Mothers Arrested Over Alleged Role In Childcare Fraud Syndicate

Detectives have arrested multiple parents who allegedly offered their children's names to an elaborate daycare fraud syndicate in Sydney.

Sixteen women were targeted in morning raids across the city's south-west on Thursday, two days after eight others were charged.

The women were taken to local police stations where they are expected to be charged with participating in a criminal group.

READ MORE: 'Fake' Daycare Sting Allegedly Defrauded $4 Million From Taxpayers 

It comes after 17 people were charged in May over their involvement with the fraudulent operations of Red Roses Family Day Care.

Police allege the family daycare business was set up to defraud the federal government's childcare subsidy schemes, and claimed at least $3.8 million in annual rebates.

The company's director alone pocketed about $30,000 a fortnight, police alleged in May.

Three people were charged with directing a criminal group and 14 with participating in a criminal group.

Sixteen women were arrested on Thursday morning. Photo: NSW Police

NSW Police set up a strike force to investigate the fraudulent activity in July last year.

In May, State Crime Commander, Acting Assistant Commissioner Stuart Smith said the company was set up like a "legitimate business".

"It created timesheets, it had photographs of children that weren't in care, it had mock-up areas, it had an administrative structure, rostering, like anything else in a legitimate business," he said.

"However, the whole thing was a fraud," he said.

At the time, police revealed some 150 parents had allegedly sold their children's identities to help the company qualify for the subsidies.

"There are over 150 parents laying claim in terms of rebate, what we've taken out yesterday are the professional facilitators behind this syndicate," Smith said, adding "we won't rule out further significant arrests".

As part of further investigations, detectives charged eight people -- seven women and one man -- on Tuesday, arresting another 16 women on Thursday morning.

Featured image: NSW Police