Former Auburn deputy mayor Salim Mehajer is among four people arrested over allegations of insurance fraud relating to a car crash in Sydney's southwest last year.
The smash involved a Mercedes AMG and Mitsubishi Outlander at an intersection in Lidcombe one morning in mid-October.
Mehajer, 31, was freed from the luxury car by firefighters after the crash and taken to hospital.
His passenger and the occupants of the other vehicle - two women, aged 31 and 32 - were not injured.
NSW Police set up a strike force to investigate the collision and early on Tuesday arrested Mehajer at a home in Vaucluse, while a 28-year-old man was also arrested at a Lidcombe property.
They were taken to Waverley and Bankstown Police Stations respectively and detectives said they would be charged with perverting the course of justice and conspiracy to cheat and defraud.
Two other people - a 30-year-old man and 31-year-old woman - were arrested in Lidcombe and will be charged with conspiracy to cheat and defraud.
Mehajer's lavish Lidcombe mansion was raided by detectives in November over what was described as an ongoing investigation.
In October, police confirmed they were investigating allegations companies linked to Mehajer were involved in car insurance fraud.
The businessman was travelling to court to face assault charges when he was involved in the crash.
Further arrests are expected and police will address the media over the investigation later on Tuesday.
