Four people were arrested today as part of an investigation into organised crime in the north east region.
Those arrested are suspected of being involved in conspiracy to commit insurance fraud. This is the culmination of a 12 month investigation and brings to 25 the total number of people arrested so far.
The four people, all men from Derwentside and Darlington, are currently being questioned at police stations in County Durham.
The offences being investigated involve fraudulent claims against insurance companies for the recovery, repair, disposal or replacement of vehicles damaged in crashes, plus associated car hire costs.
Superintendent Rob Coulson said today: “This has been an extensive, protracted investigation into a so-called ‘crash for cash’ scam.
“We believe this to be organised crime on a large scale, involving more than 300 accidents, averaging around £14,000 per claim. In total, we believe these crimes have resulted in losses of well over £3m to those insurance companies.”
Supt Coulson added that there was a perception that insurance fraud was a ‘victimless’ crime, but this was far from being the case.
“Insurance fraud makes victims of everyone who insures a vehicle,” he said.
“The cost is passed on to law-abiding motorists and has been recently estimated at £44 per driver. We know for a fact that car insurance premiums have increased substantially in the Derwentside area, the indication is well in excess of the national average.
“Some drivers in Derwentside are struggling to find any companies prepared to insure them.”
Glen Marr, Director of the Insurance Fraud Bureau, added: “The IFB has been working closely with Durham Constabulary on this investigation and these arrests show the power of a collaborative partnership between police and the insurance industry.
“Defrauding an insurer is now a high risk activity and the industry is not a soft target for criminals. The message is loud and clear – seek to defraud an insurer and you risk serious repercussions, to include prosecution and seizure of assets.
“Together with the police, we will continue to find, expose and pursue individuals and gangs involved in this kind of criminal activity.”
Today’s arrests bring to were part of Operation Sledgehammer, which is the Durham Constabulary initiative to tackle organised crime.
Deputy Chief Constable Michael Barton said: “We’re determined to ensure that organised criminal networks never gain a stranglehold on our communities.
“Our message to anyone thinking they can operate a criminal network is clear: we have you in our sights and we will take enforcement action against you.
“And we will use all the powers available to us through the Proceeds of Crime Act to ensure you don’t profit from your actions, either now or in the future.”
Source : IFB Press Release
