Clint Leigh Elford, 27, of Goulburn, has allegedly spent all of the $525,000 he was paid by the American International Assurance Company (Australia). It is understood he made charitable donations, and gave $30,000 to his beloved Cronulla Sharks NRL club.

Elford's donation to the Sharks has proven a headache for the club after it was revealed former Cronulla chief executive Tony Zappia failed to reveal the cash injection to board members.

Police said in court that a further $125,000 of the fraudulently obtained money was paid to Elford's mother. Dressed in the same black jacket he was wearing when arrested on Tuesday afternoon, Elford faced court after spending the night in a nearby hospital.

Legal Aid Commission solicitor Michael Bladwell said Elford had been ''treated for a serious illness''.

''He's on medication for that and there also appear to be some mental health issues. He says that he spent three days in Goulburn psych ward in 2006.'' Police documents tendered to the court included an allegation that earlier this year Elford made false statements to try to claim $1.5million from Allianz Australia Life Insurance.

Magistrate Beverly Schurr granted Elford strict conditional bail.

Late yesterday, Elford had not been released from custody and there was some doubt he would meet his bail conditions.

Elford will face Goulburn Local Court next Wednesday.

NRL chief executive David Gallop called for detailed governance reports from every club yesterday, but said he did not expect to find problems.

Instead, the NRL chief executive said it was the right time to check clubs' procedures in the wake of the latest scandal to rock Cronulla.