A NSW man is expected to be charged over the murder of Karlie Pearce-Stevenson. Police say the 41-year-old has been arrested at Cessnock police station in the NSW Hunter Valley.
A man has been charged following the death of another man in Mount Druitt early this morning.About 12.30am (Wednesday... Posted by NSW Police Force on Tuesday, October 27, 2015
Inquiries into the murder of Ms Pearce-Stevenson's daughter Khandalyce Kiara Pearce continue.
The 20-year-old's remains were found in the Belanglo Forest, north of Sydney, in 2010, while the remains of her daughter were discovered alongside the Karoonda Highway in South Australia's Murray Mallee earlier this year.
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Karlie's identity stolen after murder
The arrest comes after police on Tuesday announced Ms Pearce-Stevenson's identity, bank account and mobile phone were used for years after her death to mislead family and defraud social services.
Almost $100,000 was spent or withdrawn from the 20-year-old's bank account between November 2008, when she was last seen, and March 2012.
A female pretending to be Ms Pearce-Stevenson had conversations with family members on several occasions and duped them into transferring money into her account.
It was also revealed that a woman in a wheelchair had impersonated Ms Pearce-Stevenson in a Centrelink interview in Adelaide in 2010.
Police believe at least one man and two women were involved in the fraud, and that at least one of them were responsible for the murders.
Ms Pearce-Stevenson's body was discovered in the Belanglo State Forest in NSW in 2010 and Khandalyce's remains were found near a suitcase beside a South Australian highway five years later.
It is believed the mother and daughter were killed in December 2008 at different times and in different locations.
A multi-state investigation has been under way since police linked the two bodies this month with fresh DNA evidence.