Fake car accident gang made false claims worth more than £120,000.
Members of a gang who made false insurance claims worth over £120,000 are due to be sentenced at Croydon Crown Court today.
City of London Police launched an investigation after insurers saw the same addresses and vehicles appearing on several claims. Other insurance companies were warned about the gang and discovered they had also been targeted.
The seven men who made claims for car accidents that never happened pleaded guilty to conspiracy to defraud on June 12.
The gang, all from North West London, made more than 30 fraudulent insurance claims between 2003 and 2006, resulting in over £120,000 of losses to the insurance industry.
Head of City of London Police’s Economic Crime Department, Det Chief Supt Steve Wilmott QPM leads a team investigating several car insurance, or ‘crash for cash’ frauds.
“This particular gang used a web of fake identities, and rented properties in a bid to defraud insurance companies,” he said.
“They claimed money for supposedly high-value cars, but often these cars were already a write off when the alleged accident took place.”
Direct Line worked closely with City of London Police to identify the fraudsters and gather evidence for their prosecution.
Kate Lotts, director of specialist claims at Direct Line, said: “We don't just invest significantly into countering fraud because of the costs to the industry, we are also very aware that the actions of these criminals pose a significant risk to innocent drivers and put pressure on our customer's premiums.”
John Beadle, chairman of the Insurance Fraud Bureau said: "It is encouraging to see that all those arrested pleaded guilty which demonstrates the quality of evidence being generated by the insurance industry and the effectiveness of working so closely with the police to support investigations.
“The success of this operation sends a very clear message to those criminals who are targeting innocent motorists and seeking to defraud insurance companies - the industry can identify who you are and we are coming after you.
