Couple charged over 'Santa' car theft plot

A Sydney couple has been accused of arranging for a man in a Santa costume to steal their luxury car in an attempt to make a fraudulent insurance claim.

The 32-year-old woman and 35-year-old man were arrested last Thursday, nearly seven weeks after the woman reported her Mercedes C63 stolen from the underground car park of a Zetland unit complex.

Police last week released CCTV footage of a man dressed in a Santa outfit - complete with white beard and hat - stealing the car.

They arrested a 54-year-old man on Tuesday following the public appeal and a raid on a garage in Kogarah, where the green Mercedes was found.

He has been charged with disguising with intent to commit an indictable offence, entering a building with intent to commit an indictable offence, and dishonestly obtaining financial advantage by deception.

He was refused bail to appear at Central Local Court on Wednesday.

Police allege the couple had arranged for the man to steal the car before they attempted to claim the theft against their insurance.

They were also charged with dishonestly obtaining financial advantage by deception and will face Downing Centre Local Court on February 18.