New South Wales police have charged a man with 40 fraud-related offences and will allege he helped stage multiple car accidents, some of which were later blamed on spiders that had crawled onto drivers.

As part of their wider investigation into compulsory third party (CTP) fraud, they raided a home and business in Liverpool, seizing a firearm, more than $100,000 cash and gold bullion worth $30,000.

Haidar Al Jeezai, 31, was arrested at another office in Liverpool yesterday and appeared briefly in Liverpool court today, where he smiled at supporters from the dock.

Police will allege he used his links within the Iraqi community to organise multiple fraudulent CTP insurance claims.

They allege many of the participants in the fraud were Iraqi citizens who had arrived in Australia via Christmas Island.

What is a green slip? A green slip refers to NSW's compulsory third party insurance scheme

A green slip refers to NSW's compulsory third party insurance scheme The policy provides compensation for people killed or injured in motor vehicle crashes

The policy provides compensation for people killed or injured in motor vehicle crashes It is a legal requirement for all motor vehicles registered in the state

In one case, police will allege a minibus was hired and filled with passengers.

It later had a collision with a 4WD at an intersection in Liverpool, and 11 occupants in total from both vehicles lodged personal injury claims totalling $1.2 million.

The accident was blamed on a spider that had crawled onto the bus driver's hand, startling him.

Detective Superintendent Arthur Katsogiannis said police would allege the crash was staged and that Al Jeezai helped orchestrate it.

"We will also be alleging that he was instrumental in those fraudulent claims by fabricating motor vehicle collisions, making medical appointments and solicitors appointments for these individuals, and instructing the passengers and drivers of those alleged motor vehicle collisions as to what to say during their interviews with those doctors, solicitors, investigators from the insurance companies and NSW Police," he said.

The insurance claims arising from that incident were ultimately denied.

'Spider' story used again

In another case, two vehicles were reported to have collided at the same Liverpool intersection.

As a result of the crash, nine CTP and two property insurance claims were made, totalling $1.2 million.

Again, police will allege the accident was orchestrated by Al Jeezai and that it was blamed on a spider that had fallen into the lap of one of the drivers, causing them to step on the accelerator.

Al Jeezai was not required to enter a plea and will remain custody until the matter returns to court on April 20.

More arrests expected

Last year, NSW Police established Strike Force Ravens to probe CTP insurance fraud.

The average cost of NSW green slips has risen 70 per cent since 2008. Last week police pulled three cars from the Georges River at Lansvale after raiding two offices at Bankstown and Auburn.

Detective Superintendent Katsogiannis, who heads the Fraud and Cybercrime Squad, said police believed green slip fraud had existed for up to three years and his team expected to make more arrests.

"This is only the beginning. This is the first door knock in the arrest of many and there is still time for anyone who is involved in this sort of criminal activity or is assisting in this type of fraudulent behaviour to come forward and assist us."