A further 20 women suspected of being part of an elaborate family day care fraud syndicate have been arrested in Sydney.

Detectives initially charged 17 people in May, saying they were part of a fake business called Red Roses Family Day Care.

It was alleged the illegitimate company raked in about $4 million in rebates by exploiting the federal government’s childcare subsidy scheme.

The company’s director alone pocketed $30,000 a fortnight, NSW Police said at the time.

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

A further seven women and one man were charged on Tuesday this week while another 16 women were arrested in Sydney’s south-west on Thursday morning.

Police in May revealed some 150 parents who claimed they had between three and seven children in care claimed rebates.

Red Roses Family Day Care looked like a legitimate business operating out of multiple sites in Sydney and Wollongong.

It said it provided “safe, nurturing and loving” care to more than 450 children but, police allege there were no real children, just photographs of them.

Play areas had been mocked up, time-sheets faked and rosters fixed.

“The whole thing was a fraud,” Acting Assistant Commissioner Stuart Smith said in May.

-AAP