Conman who tried to scam LV= gets jailed

A fraudster has been sentenced to eight months in prison after attempting to claim for a car accident that had not happened.

Equity Red Star customer Michael Rajinder Singh, 47, from Doncaster, claimed that, on 16 January 2010, he had been involved in a crash with LV= customer Rudzam Didzus. Singh said he had been driving in Doncaster when Didzus emerged from a side road and hit him.

LV= had a £120,000 reserve on the claim, which sought to recover medical treatment for two drivers and five passengers for personal injuries, car repairs, credit hire and storage, and all third-party legal costs.

But LV=’s claims crime prevention team suspected fraud because police had not been involved following the alleged accident, the car damage did not match the accident description and the claim was made only a few days after Didzus had taken out his motor policy.

LV= turned down the claim on the basis that the accident had never happened.

But Singh began proceedings against LV= for his costs, and LV= appointed law firm Keoghs to investigate.

Singh’s claim was dismissed in Sheffield Country Court on 18 September 2012, and LV= began proceedings against him for contempt of court, to which Singh pleaded guilty. On 19 December 2012, he was sentenced to eight months in prison at Sheffield County Court.

Judge Robinson said: “Those tempted to make fraudulent claims from fictitious accidents should take heed. False claims take up valuable court time that could be better spent resolving genuine disputes. Fraud costs the insurance industry an eye-watering £2bn each year and honest motorists would also agree that money could be better spent.”

LV= claims crime prevention manager Clare Lunn said: “Fraud is a serious blight to the insurance industry and drives up the cost of premiums for all. While the defendant in this case admitted his guilt, we felt it was important to continue with proceedings against him in order to deter others from committing this type of crime.

“The evidence in this case was overwhelming and, as a result, Mr Singh received a custodial sentence. We hope this will send a message not just to other criminals but also to the professional enablers that support financial crime.”

Keoghs partner and director of complex fraud Stratos Gatzouris said: “We had a number of concerns about this claim very early on as it seemed to fit the pattern of other, similar and fraudulent claims we had received in the past.”