Operation Exhort Arrests – Major Insurance Fraud Investigation
Bedfordshire Police has today (Tuesday) arrested 10 people on suspicion of conspiracy to defraud insurance companies as part of a major investigation into an organised criminal enterprise based in Luton. The current investigation is targeting the group’s activities in staging fraudulent accidents otherwise known as ‘cash for crash’ fraud offences.
The six-month long investigation, assisted by investigators from the Insurance Fraud Bureau, culminated in this morning’s dawn raids at a total of four addresses, two in south Bedfordshire, including Bury Park, Luton and Chalton (near Houghton Regis), and one in neighbouring St. Albans (Hertfordshire) and one in Reading (Berkshire).
The investigation, code named Operation Exhort, was started six months ago by a specialist team of detectives within Bedfordshire Police following information received about a major insurance scam operating in the south of the county.
Working with the Crown Prosecution Service, Bedfordshire Police will restrain over £1,000,000 worth of assets from those arrested today with a view to ultimately confiscating those assets under the Proceeds of Crime Act.
Around 250 Bedfordshire police officers, some of whom were armed, were deployed to carry out the arrests and subsequent searches of properties which are still on going. Financial investigators and specialist search officers have also been involved in the operation and have so far seized vehicles, documentation, cash and other property which will subsequently be examined in further detail as part of the evidence gathering process. Investigators from the IFB are providing ongoing advice and assistance.
Substantial financial sums are thought to have been accumulated by the people involved in the scam who are suspected of making false insurance claims following staged vehicle collisions.
Also known as ‘cash for crash’, the scam involves offenders causing collisions between themselves and innocent motorists who then have to claim on their insurance even though they weren’t at fault.
Bedfordshire Police Assistant Chief Constable Grahame Bullock said the scam was much more sinister than simply defrauding insurance companies.
He said: “While making false claims is very serious and affects us all by putting our insurance premiums up, there is clearly another element to this scam which involves large scale money laundering and using the proceeds to fund other more serious types of crime.”
“This operation is the culmination of many months of hard work, surveillance and co-operation between ourselves and the insurance industry and is excellent example of agencies working in partnership to protect the public and tackle serious and organised crime.”
John Beadle, Chairman of the Insurance Fraud Bureau said: “Today’s arrests demonstrate the effectiveness of the insurance industry and police working collaboratively to protect innocent motorists and policyholders.”
“We will continue to find, expose and pursue those criminal gangs involved in organised insurance fraud. I'd also like to take this opportunity to encourage anybody who is concerned that they may have been the victim of a staged motor accident or with information on insurance fraud to call our free and confidential helpline on 0800 328 2550. Experience tells us that criminal gangs involved in this type of fraud are frequently engaged in other forms of serious criminality.”
Anyone with information about related crimes should contact Bedfordshire Crimestoppers, anonymously, on +44 0800 555 111.
The 10 arrested are currently being questioned at police stations across Bedfordshire. Enquiries continue.
The IFB was launched in July 2006, to clamp down on organised, cross-industry insurance fraud in order to protect honest policyholders. Fraud costs the insurance industry over £1.5billion a year and adds 5% to premiums. Criminal gangs organising complex scams are earning up to £4 million a week from organised insurance fraud and frequently use the proceeds to fund other forms of criminality.
Via the IFB, the insurance industry is working collaboratively to detect and expose these criminal gangs; 97% of the UK’s personal lines insurers are participants in the IFB service. The Bureau analyses the details of insurance policies and claims records of all insurer members to identify suspicious activity. It then leads or co-ordinates investigations with the effected insurers and police to expose fraudsters and bring them to justice, recovering fraudulent monies paid out and seeking criminal prosecution.
For further information visit www.insurancefraudbureau.org
For further media enquiries about the IFB please contact Anne Staunton at Peak Marketing and Communication Services on 0845 056 0534 or email anne.staunton@peak-marketing.co.uk For more information log on to www.peak-marketing.co.uk
