The man named as a person of interest in the disappearance of William Tyrrell was living with three young boys at the time the toddler vanished - despite authorities being aware of allegations he raped two young girls in 1987. The New South Wales Ombudsman is investigating how Bill Spedding, 63, who has been charged with five counts of child sexual assault and two counts of common assault, was able to live with children despite claims being made against him. The mother of the three young boys, who cannot be named, was shocked to discover that the children had been living with a man accused of child abuse. 'Someone... needs to be held accountable,' she told The Australian. Scroll down for video . Bill Spedding was arrested and charged on Wednesday for the sexual assault of two girls  in Sydney in 1987 . The boys' grandfather told the newspaper: 'I am very concerned about what may have happened to my grandchildren.' During a short hearing on Thursday, a court heard Spedding raped two girls aged six and three in a caravan repeatedly nearly 30 years ago. Case notes held by the NSW Department of Family and Community Services detail the allegations of abuse, court documents show. While the Ombudsman confirmed it will be 'making inquires' into the accused sex offender's living situation, police are expected to lay more charges against Spedding and his alleged involvement in a paedophile ring. 'Investigations are continuing concerning such matters and it is anticipated further charges will brought against the accused in the foreseeable future,' the police fact sheet states, according to SMH. Spedding has denied any involvement in the disappearance of William, who was three years old when he vanished from his grandmother's Kendall home in September as played, dressed in his favourite Spiderman costume. The 63-year-old was a person of interest in the case of missing toddler William Tyrrell . Police emphasise the charges against Spedding are unrelated to the case of missing boy William Tyrrell, who disappeared from Kendall in NSW's mid north coast on September 12 last year. The disturbing historical crimes emerged after the washing machine repairman became a person of interest in the ongoing search for the three-year-old. Police will allege that, during a weekend in 1987, a three year old girl was sexually penetrated four times and assaulted in a caravan, according to the Daily Telegraph. Spedding was staying in a caravan on a property in Campbelltown in Sydney's west which was reportedly owned by his friend. In a victim statement the child, now aged in her 30s, claims she was either thrown against a wall or off the bed when she woke to found herself being raped. Margaret Spedding was pictured leaving Port Macquarie court on Thursday after her husband was refused bail . Detectives stressed that Spedding's arrest wasn't related to the four-year-old's disappearance . Court documents reveal that the mother and grandmother of the victim recall the three-year-old being greatly troubled by pain in her vagina and telling them that 'Bill did it', according to SMH. She was 'ill and continually vomiting' the following day and had 'extensive, black coloured bruising to her vagina and legs', according to the Daily Telegraph. At the time, the child sex assault unit at Westmead Hospital assessed the two children and determined that the three-year-old had been sexually penetrated in a number of ways. The six-year-old's injuries were also ruled to have been caused by penetration. Spedding's lawyer Robert Hoyles said the accused is adamant he is innocent and has done nothing wrong. 'One might say Mr Spedding will deny these allegations until his final breath,' Mr Hoyles said. Mr Spedding refused to take part in a formal interview at Port Macquarie police station on Wednesday night, according to SMH. This comes as police returned to the 63-year-old's home on Monday for a third time this year after it was unveiled that he was due to fix William's grandmother's washing machine around the time the boy vanished . Spedding was arrested at his Bonny Hills home on the NSW mid-north coast at about 1.30pm on Wednesday . The court heard Spedding denied the claims when police initially put them to him in the 1980s. The case is only as strong as it was in 1987, Mr Hoyles said. He argued that to detain a man with no criminal record for such an historical matter when a trial was up to a year away would be a great injustice. However, the magistrate found Spedding had not shown cause as to why detention was unjustified given the serious nature of the offences and Spedding was denied bail. Despite the obscenity of the charges, Spedding’s wife Margaret supported him in court and they pressed their hands against the glass when he was refused bail, according to SMH. Mr Spedding applied for bail on Thursday but it was refused by Magistrate Thomas Hodgson. He will next appear in court on June 18. The 63-year-old was arrested at his Bonny Hills home on the NSW mid-north coast on Wednesday after five detectives descended on his property. His wife Margaret was in court as Spedding made his bid for bail. Spedding is believed to have said 'no' when five detectives asked him to go with them in the unmarked police car on Wednesday, Fairfax reported. While Spedding's wife, Margaret, was seen yelling at reporters during the arrest at their home. Just hours earlier, it was revealed that William's grandmother asked Spedding, a few days before her grandson disappeared from her garden, to fix her washing machine because she was expecting her family to stay over, The Daily Telegraph reported. This contradicts reports that her family's visit was unexpected. Spedding is believed to have said 'no' when five detectives asked him to go with them in the unmarked police car . Spedding was due to fix William's grandmother's washing machine around the time the boy vanished. This week investigators visited Spedding's home for the third time this year before his arrest. It comes after police revealed they believe William may be alive, despite fears that he was abducted by a paedophile ring operating on the mid-north coast of NSW. Investigators believe the boy was snatched during a very short window of time when he was out of sight of his family as he played outside . Police have visited Spedding's home three other times this year after becoming a person of interest in the case of the missing toddler . The parents of the missing three-year-old released new pictures of their son and a video pleading for his return by abductors who are believed to have snatched him in broad daylight last September . Investigators believe he was snatched during a very short window of time when he was out of sight of his family as he played outside. The parents have urged anyone with information to contact Crime Stoppers immediately on 1800 333 000. The release of the video comes more than a month since police scoured bushland in Bonny Hills, south of Port Macquarie, for evidence relating to William's whereabouts. Police divers were brought in from Sydney to search a murky dam in a bush reserve and a nearby swamp, after more than 30 officers and the dog squad had spent spent two days searching through dense bushland - including along a track that can only be accessed by four-wheel drive. The three-day search was carried out near Mr Spedding's home. Sorry we are not currently accepting comments on this article.
Bill Spedding, the person of interest in the William Tyrrell case, has been charged with five counts of child sex abuse . He was living with three boys at the time William vanished - despite authorities being aware of the claims against him . The NSW Ombudsman confirmed they are 'making inquiries' into how the boys came to be living with Spedding . 'Someone needs to be held accountable,' the boys' mother said . Victoria Police are investigating his alleged involvement in a paedophile ring and expect to lay more charges . Spedding has denied any involvement in William's disappearance . He was refused bail on Thursday after a brief court appearance .