Jail time and compensation orders handed down to Welsh gang in major crash for cash scandal
29 June 2018
Today, Friday 29 June 2018, the second phase of a large scale crash for cash scam, investigated by the Insurance Fraud Bureau (IFB), its insurer members and Gwent Police, drew to a conclusion with the final sentences being handed down to the fraudsters involved.
The sentencing took place at Newport Crown Court following the end of a series of trials in which 77 fraudsters either pleaded or were found guilty for their participation in the insurance fraud scam.
The original case, which concluded in 2015, saw 81 people prosecuted for their role in scam, which centred around the use of vehicles in staged accidents so that the fraudsters could submit bogus and exaggerated insurance claims to increase pay-outs.
The second phase investigated additional insurance claims linked to the original investigation, resulting in 96 convictions across the 77 defendants for a range of offences including conspiracy to defraud and fraud by misrepresentation.
The 77 defendants received a total of:
- 123 months’ custody
- 296 months’ suspended sentences
- 48 months’ conditional discharge
- 6350 hours of unpaid work
- £127,242 compensation orders
Ben Fletcher, Director of the IFB commented: “The outcome of this case goes to show that if you commit insurance fraud you will pay the price – in this case that price has included 123 months of jail time and £127,242 in compensation orders for these fraudsters, who had little regard for the serious nature of their crimes.
“While we were pleased with the outcome of phase one of this investigation, which resulted in a total of 601 months’ jail time for the 81 fraudsters, we saw an opportunity to continue the fight and ensure that everyone involved was brought to justice.
“Both phases of this case are a fantastic demonstration of the value of the collaboration between IFB, Gwent Police and our insurer members. Through the hard work and the determination of the industry as a whole, we are proving that insurance fraud is top of our agenda and will not go unpunished.”
Senior Investigating Officer at Gwent Police, Steve Maloney said: “Operation Dino was investigated by a small team of dedicated investigators who had to manage a large number of individuals responsible for a very complex fraud.
“The investigation has brought people to justice for their criminal activity but has also assisted our partners in the insurance industry to prevent future offences of this nature going undetected. Crash for cash scams have a real impact on society and cost the honest policy holders almost 350 million each year.”
Members of the public can play their role in fighting back against crash for cash scams by reporting what they know to the IFB’s Cheatline.
The Cheatline, powered by Crimestoppers, is a free service that enables members of the public to anonymously report information or suspicions about insurance fraud by calling 0800 422 0421 or reporting online at www.insurancefraudbureau.org/cheatline.