An investigation into a criminal syndicate that organised a ‘crash for cash’ car insurance scam by staging road traffic collisions then submitting false insurance claims concluded at St Albans Crown Court on August 4, with the gang receiving a total of 10 years’ imprisonment.
A two-year investigation, codenamed Operation Mysterious, was conducted by Hertfordshire’s Serious and Organised Crime Group and the Insurance Fraud Bureau (IFB). The inquiry saw the two organisations working in partnership in order to uncover the syndicate’s fraudulent activity.
During the operation, dawn raids were carried out in November 2006 and April 2007 resulting in 13 defendants facing charges of conspiracy to defraud insurance companies, giving a clear message that the insurance industry and law enforcement is taking this kind of criminal activity very seriously.
A team of specialist detectives from Hertfordshire working with the IFB identified that the gang was making dishonest claims to insurance companies for compensation totalling more than £250,000 relating to road traffic collisions that had never happened.
Hertfordshire Constabulary’s Senior Investigating Officer was Detective Superintendent Jon Chapman. Jon commented: “False details about the accidents were provided to insurance companies and bogus documents were created. Some vehicles were deliberately damaged in order to support the claims, which were made in respect of damage to the vehicles, personal injuries, recovery costs, hire vehicles, legal costs and loss of earnings.”
Detective Constable Julian Griffiths, who worked on Operation Mysterious from the outset, added: “We are pleased with the convictions which have followed many months of effective partnership working with the IFB. The Constabulary is committed to tackling serious and organised crime and the successful conclusion of this inquiry shows our determination to bring offenders to justice. We are particularly grateful for the support and assistance of the Crown Prosecution Service and Prosecution Counsel.”
“This outcome sends out a clear message to fraudsters that their activities will be uncovered by the police and specialist agencies. With support from the Crown Prosecution Service, the Constabulary has also been able to restrain more than £1m in assets from those convicted with a view to securing confiscation under the Proceeds of Crime Act. This legislation enables us to hit criminals where it hurts – in their pockets.”
John Beadle, Chairman of the Insurance Fraud Bureau commented: “This demonstrates the power of the collective and the results that can be achieved when the public and private sector work closely together to tackle organised criminals targeting the insurance industry and jeopardising public safety. I would urge anyone with information on insurance fraud to call the Bureau’s free and confidential Cheatline on 0800 3282550.”
A Crown Prosecution Service spokeman added: “This is one of the first cases of its kind prosecuted in the UK. The commitment from the police, the Insurance Fraud Bureau and the prosecution team has undoubtedly been the cause for securing these convictions. The Crown Prosecution Service worked very closely with these Criminal Justice agencies to achieve justice.”
Details of those involved in the conspiracy and their sentences:
Bobby GUL (31 years)
Rickmansworth Rd, Watford, Herts
Sentenced to two and a half years’ imprisonment
Umear GUL (30 years)
Rickmansworth Rd, Watford, Herts
Sentenced to two and a half years’ imprisonment
Ummar HUSSAIN (29 years)
Leagrave Rd, Luton, Beds (Owner of GSK Motors, Luton, Beds)
Sentenced to 15 months’ imprisonment
John DAVIES (43 years)
Rickmansworth Rd, Watford, Herts
Six-month suspended sentence
Nichola DAVIES (38 years)
Rickmansworth Rd, Watford, Herts
Four-month suspended sentence
Charlotte BATES (26 years)
Courtlands Close, Watford, Herts
Sixteen-week suspended sentence
Umbreen RAHMAN (33 years)
Busch Close, Isleworth, London
Sixteen-week suspended sentence
Nabeel SARWAR (25 years)
HMP – Serving a sentence for a previous fraud
Sentenced to four months’ imprisonment
Nadeem BUTT (38 years)
Charlock Way, Watford, Herts
Twenty-week suspended sentence
Stephen CARVER (37 years)
Lark Rise, Hatfield, Herts
Twenty-week suspended sentence
Shuaib SIDDIQY (30 years)
Denbigh Rd, Luton, Beds
Four-month suspended sentence
Allan ELTON (41 years)
Ackworth Crescent, Luton, Beds
Twenty-week suspended sentence
Khaleeq UR-EHMAN (30 years)
Milford Close, St Albans, Herts
Six-month suspended sentence
They were also ordered to carry out more than 1,000 hours of unpaid community service.
Further background:
The staged collisions involved twelve different drivers. Each one of the twelve drivers was a relative or associate of either Bobby or Umear Gul, who organised the fraud. The Gul brothers, who were living in Rickmansworth Road, Watford, operated with four other Watford associates, John and Nichola Davies, Charlotte Bates and Nadeem Butt. Three of the ‘accidents’ were claimed to have taken place in the Watford area at The Avenue, College Road and Courtlands Drive. It was found that the Gul brothers were in regular contact with the other conspirators in the days leading up the collisions.
Ummar Hussain was a partner in GSK Motors which was based in Luton and was another key conspirator. It was GSK which purported to tow away vehicles from the scene of the non-existent collisions and submitted bogus paperwork to the insurance companies. Two of the accidents were claimed to have taken place in Luton in Bishopscote Road and Lincoln Road.
Hertfordshire Constabulary identified that there were insurance claims being made in respect of collisions that had not been reported to the police. Officers contacted the IFB who were able to advise on the emergence of a new motor insurance fraud involving staged accidents, known as ‘Crash for Cash’. Analysis of insurance claims by the IFB identified numerous car insurance claims which could be linked by common factors. Six of these accidents were the subject of further investigation and were found to be closely linked together.
Detailed investigative work was carried out by the police on these six collisions. Officers took several hundred statements from insurance companies, auction houses, vehicle examiners and other related agencies.
Photographs of damaged vehicles were examined by vehicle experts who found the damage to be contrived. Other vehicles were located by the police and were subject of direct expert examination. The examiners concluded that the car parts were original to the vehicles and therefore the vehicle had not been involved in the accidents as claimed. Other evidence was obtained showing the conspirators had been in contact before, during and after the alleged accidents.
During the arrest phase search warrants were executed at properties in Watford, Hatfield, Luton, Isleworth and Birmingham. Evidence relating to the insurance fraud was recovered including bogus documents used to facilitate the claims. At one address a false invoice purporting to be from a vehicle recovery agent was found on the hard drive of a computer belonging to one of the defendants. Also recovered were handwritten scripts provided to the drivers by the organisers in order to complete their insurance claim forms.
Upon sentencing, His Honour Judge Griffith commented that these were serious offences which impacted on everyone as this type of criminality causes insurance premiums to be raised. He added that their activities required significant planning and were only detected due to the facilities available to the prosecuting agencies in this case.
