Fraudsters made over £320,000 from fake insurance claims in a ‘crash for cash’ scheme. They now face jail time after admitting their crimes.
The group included ten members, some from the Midlands. They caused crashes or provided fake details to support their claims. Their scam lasted just under a year.
Investigators found that the scheme operated from December 2015 to October 2016. The ringleaders, Raju Patel and Kamlesh Vadukul, ran a body repair shop for damaged vehicles.
They partnered with a repair finance service to help non-fault drivers get quick repairs. This service allowed drivers to get funds within 24 hours instead of waiting for insurance payouts.
Patel and Vadukul used stolen identities to take out car insurance policies. They submitted claims for vehicle damage from fake accidents, sending photos as proof.
The repair finance service didn’t check the vehicle damage, leading to payments into Vadukul’s bank account. Insurers raised concerns about the claims’ validity.
Many policies were taken out shortly before the supposed accidents. The Insurance Fraud Bureau referred the case to the Insurance Fraud Enforcement Department (IFED).
IFED investigated eight claims and found no repairs were done. Patel and Vadukul submitted claims totaling £275,548 for 39 fake collisions.
A total of £321,055 was paid into Vadukul’s account, which was then withdrawn or transferred. Two members of the group pleaded guilty to fraud and money laundering.
Vadukul, 36, and Amarjit Dhaliwal, 45, admitted their roles in the scheme. The rest initially denied charges but later changed their pleas during the trial.
The group will be sentenced at Birmingham Crown Court in April. Detective Sergeant Adam Maskell stated that such fraud raises insurance premiums for all drivers.
He emphasized that ‘crash for cash’ fraud puts motorists at risk and shows the greed of criminals. The investigation’s complexity highlights the strength of the evidence against them.
