A Sydney man who allegedly faked his death by drowning in Ecuador two years ago has been charged with defrauding an insurer after claiming $240,000 from his life insurance policy.

Paul Andrew Terroni, 28, and his mother Diana Terroni, 56, who informed the insurer of his death and provided a copy of the Ecuadorian death certificate, have appeared before a Sydney court.

NSW Police arrested the pair in Sydney last week on the back of an investigation by City Central Fraud Unit detectives, who received a report about the false claim from the insurer in late June.

Mr Terroni, who appeared briefly in court on Friday, was remanded to appear at the Sydney Central Local Court on November 12 and was refused bail, a court spokesman told insuranceNEWS.com.au.

She says Diana Terroni’s hearing has also been adjourned to November 12 and her bail continued.