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Family ordered to repay £278,000 after insurance frauds

20 December 2012

A family that claimed thousands of pounds in fake insurance claims have been ordered to pay back over £278,000.

In August 2010, Nadeem Dad and his brother Amer were sentenced to 15 months imprisonment at Burnley Crown Court after being found guilty of money laundering and conspiracy to defraud. The convictions followed a joint investigation by Lancashire Police and the Insurance Fraud Bureau (IFB).

During a Proceeds of Crime Act (POCA) hearing at Burnley Crown Court this week it was judged that Nadeem Dad had benefited by £163,756.58 as a result of his criminal activity. A confiscation order was set for £51,846.33 of his available assets and he was ordered to pay this within six months or face a further 18 months in prison.

The confiscation order followed proceedings against Nadeem Dad’s brother and father earlier in the year. Amer Dad was ordered to pay £66,666 following a POCA hearing at Preston Crown Court in April. Their father, Munsif Dad, was given a nine month prison sentence, suspended for two years, after he was found guilty of money laundering and conspiracy to defraud. He appeared at Preston Crown Court in August where he was ordered to repay £161,331.87.

The family plotted to cheat insurance companies out of cash by submitting dozens of fake household, pet and motor claims.

They were arrested after an investigation by Lancashire Police and the IFB where it was discovered the claims were linked by common bank details, false supplier names, similar wording on invoices supplied to insurers and details around the loss. The scam required the gang to report false incidents not only to insurers but in some instances also to the police.

DI Dave Groombridge, Lancashire Police, said: 

"Fraudulent claims hit the pockets of the decent law abiding public, with every resident, motorist and trader facing increased premiums to compensate for the greed of these criminals.

"POCA seizures allow us to take back cash from offenders which they have amassed through their criminal behaviour. Nadeem Dad not only received a custodial prison sentence, but he has also had to face the consequences of his actions by repaying a significant amount of his ill-gotten gains.  I hope this sends out a warning, if we find you with cash that you cannot account for, you will be targeted.

"It is not right that criminals should profit from their offending or live a lifestyle that is funded by crime. We will do everything we can to investigate the finances of people who we have reasonable suspicion could have obtained money illegally, and then work with the courts to confiscate this cash."

Phil Bird, Director of the Insurance Fraud Bureau (IFB), said:

"Insurance fraud is not a victimless crime – we all pick up the bill for fraudsters. Undetected general insurance fraud costs the UK £2.1 billion every year, adding £50 to every honest policyholder’s premium.

"The IFB worked closely with Lancashire Police and partners across the insurance industry to bring the Dad family to justice. Both the prison sentences and seizures made under the Proceeds of Crime Act send out a clear message to would-be fraudsters – insurance fraud will not be tolerated.

"Whilst each of these claims in isolation was relatively low value and specifically designed to appear genuine to the insurers, this is another example of the strides insurers have taken through a combination of resources and technology to show all types of fraud will be detected and the perpetrators brought to justice, ensuring honest policyholders are protected.

"Proceeds of Crime legislation is enabling the confiscation of assets gained by criminals. The Dad family were prosecuted for fraud valued at just under £80,000, but the associated benefit from the crime was recognised to be significantly more, which is why the confiscation ordered repayment of almost four times that figure."