The charges were added after the accused – a former police officer – was taken into custody in November last year following a raid on his Castlemaine address.

The man, whose name was suppressed by the court, appeared in the Bendigo Magistrates' Court on Thursday where his bail application was rejected.

He was originally charged with five offences for allegedly selling falsified police identification on the darknet. Detectives covertly arranged sales with the man before making the arrest. 

He pleaded not guilty to the charges and will stand trial in the County Court in Bendigo next year.

Detective Sergeant Cameron Pye, of the Victoria Police E-Crime Squad, told the court further investigations of the man uncovered allegations that he transferred $3.5 million in shares into a company, KH Shareholding Pty Ltd, that he fradulently created.

He has been charged in relation to the further allegations, which will appear before the court next month.

The victim – a 92-year-old New South Wales man – had been compounding interest on the shares throughout his life.

The accused allegedly set up 17 fraudulent bank accounts in the man's name.

Detectives also allegedly found 200 child exploitation images on the man's computer. They were classified as category 1 – the lowest end of child exploitation material.

Detective Sergeant Pye said the man's alleged offending was serious, and he had concerns that his skill with computers and the internet meant he might be able to create false identities if placed on bail.

"I think he's very skilled at what he does, he has set himself up in such a way," he said.

"(There were) templates for setting up 100 points of ID for bank accounts."

Detective Sergeant Pye also alleged the man could have funds hidden in other accounts, but defence counsel Alan Marshall said there was no evidence to prove the suggestion.

Mr Marshall said his client informed Crime Stoppers when he sent the fraudulent identification to buyers, and they would not have ended up in the wrong hands.

Magistrate Patrick Southey said there were a number of concerning factors about the matter.

"There's strong evidence that you were willing to share information and give advice to the most serious criminal elements imaginable," he said.

"You've got the cunning and wherewithal to vanish, that does concern me."

He will appear in court at a later date.