Unfortunately this is far more common than people think and the police are not renowned for being nuanced in their approach.
To take a slightly different example:-
>>Carl Beech is a liar, fraudster and paedophile.
But for 18 months between 2014 and 2016, he was the star witness in a high-profile investigation into allegations of sexual abuse and murder, involving MPs, generals and senior figures in the intelligence services.
Those falsely accused had their properties raided, and one of them - ex-MP Harvey Proctor - lost both his home and his job.<<
The words in quotes are from the BBC website but they sum the situation up.