Pair jailed over faux compensation claim
It has been revealed that two men who conspired to make a fraudulent compensation claim against Oldham Council have been jailed for a total of ten months.
One of the men, 41, of Primrose Bank, was sentenced to six months imprisonment at Manchester’s Minshull Street Crown Court.
He had originally claimed he received personal injuries by falling on ‘defective’ steps in a passageway on Primrose Walk on June 21, 2004. His friend, 37, of Purdy House, Ashton Road was jailed for four months, after he supported the statement.
The claimant had originally launched a claim for compensation, and there was a hearing at Oldham County Court in May 2008 when it was revealed that the witness had not been present at the time of the fall, and that the victim was alone when he lost his balance on the steps.
The con as a result, was ordered to pay Oldham Council's legal fees of £6,405. The matter was then directed to the Crime Prosecution Service and the police.
Police investigated and subsequently charged the two men, who pleaded guilty to charges of perjury in September this year.
Cllr Mark Alcock, cabinet member for environment and infrastructure, said: “I hope this result reaffirms the message that Oldham Council makes every effort to weed out bogus claims. Our officers make a serious evaluation of each and every case.
“We are, of course, prepared to compensate genuine claimants, and it is our duty to compensate individuals if an accident occurs and people suffer. However, we have worked very hard to successfully implement new fraud prevention systems and this case is just further evidence of that.
“Many claims are now dropped before they get to settlement stage and we will not hesitate to refer suspected fraudulent claims on to the police for investigation.”
He urged the public to come forward if they spot any bogus claims: “The public can also help and - if you suspect someone is making a false claim - please contact our fraud hotline.”
Crash for cash
In similar news, it has been revealed that more and more people are paying gangs to stage a car accident to gain access to compensation.
These ‘crash for cash’ scams have been on the rise ever since the financial downturn and few convictions have been made. One member of a gang, who did get caught, was recently sentenced to four-and-a-half years in jail.
Sue Jones, unit head of the Insurance Fraud Bureau explained: “The starting point is when an individual is ready to get rid of their car.
“They may not be able to afford to get it through its MOT or to repair it, and they want a replacement. There are criminals who will take your car and involve it in some kind of accident. They will then pretend to be you at the scene, hand over your name and insurance details, and allow you to receive a payout and get a replacement car.”
The cash-for-crash fraud seems to be shooting itself in the foot however. The custodial sentences, high-profile trials, and the fact that the insurance industry is working with the police to crack down on the crimes may be enough to deter such scams.
However, claims management firms remain vulnerable to penetration from criminals, who may devise further variations on the matter, so they can continue profiting from innocent motorists.Updated on 12/15/2009