After the Kelly Gang robbed the bank at Jerilderie, New South Wales, they disappeared for 18 months. In January 1879, Sherritt went to the police station at Benalla and gave them information about where the Kelly Gang was hiding, and what they were going to do next. He was paid £2 for the information. Sherritt helped the police find a cave from where they could watch Byrne's mother's house. He was interested in Byrne's sister, Kate. The police told Sherritt that they would not kill Byrne. When the police in the cave were found out, Sherritt then tried to get close to Ned Kelly's younger sister, Kate Kelly. He showed the police a place from where they could watch the Kelly house, but this was soon discovered. Sherritt sold Kate Kelly a horse he had stolen from Kate Byrne. When Ned Kelly's older sister, Maggie Skillion, found out she reported it to the police. It went to court, but the case against Sherritt was dropped because the police said that the Byrnes and the Kellys were criminals and not to be trusted. Byrne's mother said she thought the whole thing was a trick by the police to get the Kelly Gang to come out of hiding.