A failed attempt at staging a "crash for cash" insurance fraud, involving a luxury car and falsified claims, has led to prison time for one man and sentences for two others.
The incident involved a deliberate collision between two vehicles, including an Aston Martin falsely valued at £60,000. The men subsequently submitted fraudulent insurance claims. Discrepancies in their accounts and the damage to the vehicles alerted LV= and Direct Line Group (DLG), the insurers for the respective cars.
The case was referred to the City of London Police’s Insurance Fraud Enforcement Department (IFED) for further investigation.
Following a three-week trial in August 2024, a jury at Gloucester Crown Court found the individuals guilty of fraud by false representation and perverting the course of justice.
Sentencing took place on December 19:
Edwin White, 65, of Dibden Lane, Tewkesbury, received an 18-month prison sentence.
Nicholas Ralph, 67, of Station Road, Cheltenham, was handed a six-month suspended prison sentence, a £1,000 fine, and ordered to repay £6,300 to LV=.
Clive Moore, 51, of Hanham Road, Bristol, was given a nine-month community order, required to complete 100 hours of unpaid work, and fined £1,000.
Detective Sergeant Chris Jones, of IFED, noted that the fraud involved risk to physical safety in pursuit of financial gain. He emphasised that such schemes inflate insurance premiums for the general public, referencing an industry-wide detection of over £1.3 million in bogus motor insurance claims daily in 2023.
The scheme came to light on May 4, 2018, when a Peugeot 208, driven by Ralph, collided with an Aston Martin DB9 driven by White. White claimed the Peugeot hit a pothole, causing it to swerve into his vehicle. Insurers later determined that damage to the cars was inconsistent with the reported circumstances, and the Aston Martin’s condition did not align with White’s assertion that it was purchased for nearly £60,000.
Additional investigations revealed connections between White and Ralph despite their claims of being strangers. White provided a bank statement purportedly showing the vehicle’s purchase, but enquiries with his bank found no record of the transaction. Further scrutiny uncovered that White and Ralph had communicated before and after the collision.
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LV= director of financial crime Ben Fletcher stated that such frauds significantly impact the industry and consumers.
“We are resolute in our determination to identify and defend against any type of fraud. There is a simple message here: if your claim is genuine, we will deal with it as quickly and fairly as we can. If greed takes over and you try and commit fraud, then be warned you may face unintended consequences, including being convicted in court and a criminal record,” said Fletcher.
Stuart Stevens, head of counter fraud intelligence at DLG, affirmed the importance of collaboration with law enforcement to prosecute fraudulent activities and reiterated a zero-tolerance policy.
“We work with all law enforcement agencies to assist them in preparing cases for criminal prosecution. We are delighted that the perpetrators of this fraud have been brought to justice. Their sentences should serve as a stark warning to others that insurance fraud is not a victimless crime, and harsh sentences will be sought in support of Direct Line Group’s zero tolerance approach to insurance fraud,” said Stevens.
In 2023, the Association of British Insurers reported 45,800 detected fraudulent motor insurance claims worth £501 million.
What are your thoughts on the impact of insurance fraud on premiums and public trust? Share your perspective in the comments.
