A man associated with a NSW performing arts school accused of the ongoing abuse of three young boys is set to be released on bail this weekend, and will be able to live in his community under strict conditions.

Paul Cook, 52, is one of seven people including Therese Ann Cook, 58, Yyani Cook-Williams, 30, and Clarissa Meredith, 23, and three others who cannot be named for legal reasons, charged with a total of 127 offences relating to the abuse of the boys between 2014 and 2016.

Mr Cook has been charged with five offences. It is alleged that he was present while his co-accused sexually assaulted the boys, deprived the liberty of one of the boys, and filmed the assaults on two occasions.

The Magistrate granted bail to Mr Cook with strict conditions including a curfew, daily reporting to police, a $100,000 cash bond and that he cannot contact any of his co-accused or the alleged victims.

Mr Cook's lawyer, Bryan Wrench, argued the crown case was weak, some of the allegations were improbable, or even impossible, and that there was a lack of any physical evidence.

"[This] could be one of the greatest miscarriages of justice in New South Wales," Mr Wrench said.

"There is no medical evidence whatsoever, the child has not been examined in any way whatsoever.

"This is a case of assault where there would be necessarily physical signs left over … we're saying the absence of evidence is evidence."

Mr Wrench played two videos from the days of some of the alleged assaults of Yyani Cook-Williams and Therese Cook playing with two of the boys in a park.

"This is said to be at a time… where [they] tied [a boy to] a pole in the playground," he said, referring to one of the videos Therese Cook is allegedly in.

"In the video there is clearly somebody [else] there.

"There has been significant publicity in this matter and not one witness has come forward."

Mr Wrench said Mr Cook had complied with police during a search of his property, alerting them to hard drives they had not seen.

He said they were yet to be presented with any evidence of the videos Mr Cook is alleged to have filmed.

Police prosecutor Ciro Triscari said the videos strengthened the case against the accused as they proved they were with the boys on those days.

He said the lack of physical evidence of injuries was not damning like Mr Wrench suggested.

"[The cuts] are not described as anything coming near very serious injury, they're described as minor lacerations," Mr Triscari said.

In granting bail, the Magistrate said it was understandable that some of the accusations would not have any forensic evidence, referring to offences which allegedly involved blood, urine and faeces.

"There are a large number of allegations some of which would not involve any forensic evidence at all, because they are complaints that would long ago have seen any trace of forensics disappear," Magistrate Clisdell said.

"Some of the blood allegations may not lend themselves to significant forensic evidence.

"This is either one of the worst cases of child abuse that would be seen or it's one of the great fantasies that have been expressed by children.

"It's difficult to believe that young children could conceive of something like that."

The children were known to the accused but were not students of the performing arts school.

Three other accused, who cannot be named for legal reasons, were released on bail earlier this month, while Therese Ann Cook, Yyani Cook-Williams and Clarissa Meredith have been refused bail.