0:00:02 > 0:00:06Insurance fraud in the UK is reaching epidemic levels,
0:00:06 > 0:00:09and it's costing us billions of pounds a year.
0:00:09 > 0:00:14Deliberate crashes, bogus personal injury claims,
0:00:14 > 0:00:18even fake deaths.
0:00:18 > 0:00:21The fraudsters are risking more and more to make a quick killing,
0:00:21 > 0:00:26and every year its adding up to £50 to your insurance bill.
0:00:30 > 0:00:31Insurers are fighting back.
0:00:31 > 0:00:34Armed with covert surveillance systems...
0:00:34 > 0:00:36sophisticated data analysis techniques...
0:00:36 > 0:00:41This is connected to a bank account and a second mobile phone number.
0:00:41 > 0:00:44..and a newly formed, dedicated police unit...
0:00:44 > 0:00:49- Police, get back!- ..they're catching the criminals red-handed.
0:00:49 > 0:00:53All those conmen, scammers, cheats on the fiddle -
0:00:53 > 0:00:58now they're caught in the act and claimed and shamed.
0:01:04 > 0:01:07Hello, it's the police, can you open the door please?
0:01:07 > 0:01:09Today, the Insurance Fraud Enforcement Department
0:01:09 > 0:01:12tracks down suspects involved with potentially fraudulent cheques...
0:01:12 > 0:01:14I'm arresting you on suspicion of money-laundering.
0:01:14 > 0:01:17..a high-performance sports car gets a roasting...
0:01:17 > 0:01:22The petrol tank caught fire, and the vehicle went up in flames.
0:01:22 > 0:01:26..and a martial arts expert gets the chop.
0:01:26 > 0:01:30This individual said that he couldn't instruct martial arts any more.
0:01:30 > 0:01:34Clearly, this video evidence showed the opposite, really.
0:01:38 > 0:01:42A bustling city centre would seem to be the perfect place
0:01:42 > 0:01:43to blend in unnoticed.
0:01:43 > 0:01:46But for would-be insurance fraudsters,
0:01:46 > 0:01:50even in the busiest cities, there's nowhere to hide.
0:01:52 > 0:01:56In 2008, a bicycle journey home was abruptly cut short
0:01:56 > 0:01:59by an accident, which would have far-reaching implications
0:01:59 > 0:02:00for the man involved.
0:02:02 > 0:02:06Geoff Owen is a consultant with national law firm, Greenwoods,
0:02:06 > 0:02:10which has a specialist anti-fraud group that worked on the case.
0:02:10 > 0:02:12This claimant was riding his bicycle along the road,
0:02:12 > 0:02:16when a taxi pulled in front of him and clipped his bike,
0:02:16 > 0:02:17causing him to fall off.
0:02:18 > 0:02:22He had suffered injuries to his neck, to his arm,
0:02:22 > 0:02:24to his hip and to his leg.
0:02:24 > 0:02:27The driver accepted liability, and the cyclist contacted the insurer
0:02:27 > 0:02:30to make a claim for the injuries he'd suffered.
0:02:30 > 0:02:34Not unusually for a claim like this, he was given a medical examination.
0:02:35 > 0:02:38Some of the symptoms that were reported to the medical experts
0:02:38 > 0:02:40was that he was not able to walk very far,
0:02:40 > 0:02:42and he was unable to ride his bicycle.
0:02:42 > 0:02:44Now, if somebody's not able to do that,
0:02:44 > 0:02:47then it's indicative of quite serious injury.
0:02:47 > 0:02:50And the repercussions of the accident were significant.
0:02:50 > 0:02:54As a consequence of these injuries, the claimant suggested
0:02:54 > 0:02:56that as he was a martial arts instructor
0:02:56 > 0:02:57and very much into physical exercise,
0:02:57 > 0:02:59he wouldn't be able to run his business,
0:02:59 > 0:03:01and that business would quickly fail,
0:03:01 > 0:03:03and this alerted the insurers to the possibility
0:03:03 > 0:03:05that this claim might be more expensive
0:03:05 > 0:03:06than they had initially thought.
0:03:06 > 0:03:10This was borne out when they received a claim for compensation
0:03:10 > 0:03:13that ran well into six figures.
0:03:14 > 0:03:18As time passed, the injuries didn't appear to be healing
0:03:18 > 0:03:20as predicted by the medical expert.
0:03:20 > 0:03:22This was a concern for the insurer.
0:03:22 > 0:03:26The medical evidence in this case suggested that this guy should have been recovering
0:03:26 > 0:03:30within about 12 months of the accident, but when it was apparent that he wasn't going to do so,
0:03:30 > 0:03:35and that he wasn't going to return to his business, it was decided to place him under surveillance.
0:03:37 > 0:03:43The insurer approached undercover filming experts, MC Investigations,
0:03:43 > 0:03:46who set up an operation to covertly film the claimant.
0:03:48 > 0:03:52The undercover investigator who led the project has to remain anonymous
0:03:52 > 0:03:54so that he can continue to work in the field.
0:03:54 > 0:03:58Before starting the surveillance, he studied the case fully.
0:03:58 > 0:04:01The first thing we do is read through the medical records,
0:04:01 > 0:04:05so we get a bit of a feel and a profile on the claimant.
0:04:05 > 0:04:07And then we went out to verify
0:04:07 > 0:04:09that he did live at the given home address,
0:04:09 > 0:04:12and once that was established, we then carried out a recce,
0:04:12 > 0:04:15a reconnaissance, so that we familiarise ourselves
0:04:15 > 0:04:16with the area that the claimant lives,
0:04:16 > 0:04:19which vehicles we're going to use,
0:04:19 > 0:04:22what manpower and what equipment we're going to use.
0:04:22 > 0:04:25Once they'd done the groundwork, the surveillance started in earnest.
0:04:25 > 0:04:28For a man who wasn't able to walk very far,
0:04:28 > 0:04:30it was clear that he was able to do so,
0:04:30 > 0:04:32and he went on very long shopping expeditions.
0:04:32 > 0:04:35But that on its own wasn't conclusive evidence,
0:04:35 > 0:04:38so the covert filming continued.
0:04:38 > 0:04:41And eventually, we got the very useful information
0:04:41 > 0:04:43that he was riding his bike again.
0:04:45 > 0:04:48And he was followed for quite a distance over a busy road,
0:04:48 > 0:04:50pedalling away merrily.
0:04:50 > 0:04:52What they saw cast even more doubt
0:04:52 > 0:04:55on the impact of the claimant's alleged injuries.
0:04:55 > 0:04:58He actually rode to a gymnasium,
0:04:58 > 0:05:00where he then proceeded to carry out martial arts,
0:05:00 > 0:05:02instructing martial arts.
0:05:02 > 0:05:05This activity directly contradicted
0:05:05 > 0:05:07what the claimant had told the insurer.
0:05:07 > 0:05:09He said that he couldn't instruct martial arts any more.
0:05:09 > 0:05:12Clearly, this video evidence showed the opposite, really.
0:05:14 > 0:05:16And the investigation didn't stop there.
0:05:16 > 0:05:20They collected evidence from a range of sources.
0:05:20 > 0:05:22The intelligence team then get to work on other angles.
0:05:22 > 0:05:25As a result of which, they go to the social network sites
0:05:25 > 0:05:27of people who are connected to him,
0:05:27 > 0:05:29and one of these suggests very strongly
0:05:29 > 0:05:31that although he's not got a formal business in any gym,
0:05:31 > 0:05:33he is again conducting fitness classes.
0:05:33 > 0:05:37The evidence against the claimant was mounting.
0:05:37 > 0:05:41He appeared to be exaggerating his injuries for financial gain.
0:05:41 > 0:05:45The activity he was performing was inconsistent with the level of disability he was alleging.
0:05:45 > 0:05:49This claim eventually built up to £300,000,
0:05:49 > 0:05:53and I can say very definitely that he received nothing like that,
0:05:53 > 0:05:55even for the genuine injuries that he would sustain.
0:05:55 > 0:05:59The compelling video footage meant that the huge claim he made
0:05:59 > 0:06:02was never paid out, and the money he eventually obtained
0:06:02 > 0:06:05was a relatively small sum to cover the actual injuries
0:06:05 > 0:06:07he had suffered in the accident.
0:06:07 > 0:06:11Sent on his bike by his insurer, this exaggerated claim
0:06:11 > 0:06:13will be on his record for years to come.
0:06:20 > 0:06:23An inept conman is confronted with evidence of his deception.
0:06:28 > 0:06:31And his face was a little bit of a picture, I'm told.
0:06:31 > 0:06:33And all bets are off for one would-be fraudster.
0:06:33 > 0:06:38The customer had been to a casino and lost over £67,000.
0:06:42 > 0:06:45Police, get back!
0:06:45 > 0:06:46Insurance fraud is on the rise.
0:06:46 > 0:06:50Hunting and punishing the criminals responsible is an elite police squad
0:06:50 > 0:06:54called the Insurance Fraud Enforcement Department - IFED.
0:06:54 > 0:06:56The Insurance Fraud Enforcement Department
0:06:56 > 0:06:58was set up earlier this year, with the sole intention
0:06:58 > 0:07:01of combating the rise in insurance fraud.
0:07:01 > 0:07:05We are a dedicated unit that works exclusively tackling that problem.
0:07:05 > 0:07:09A growing number of fraudsters are prepared to lie and cheat their way
0:07:09 > 0:07:10to money they don't deserve.
0:07:10 > 0:07:13But they'd better watch their backs, because IFED is on the case.
0:07:15 > 0:07:17Since our go-live date earlier this year,
0:07:17 > 0:07:20we've effected over 120 arrests in the first six months,
0:07:20 > 0:07:24and we are continuing to work up and down the country bringing these offenders to justice.
0:07:24 > 0:07:26We're out to stop them in their tracks.
0:07:26 > 0:07:28There's every chance that an IFED detective
0:07:28 > 0:07:30may come knocking on their door
0:07:30 > 0:07:32to arrest them for committing an insurance fraud.
0:07:34 > 0:07:36Police! Don't move! Stay where you are!
0:07:39 > 0:07:42Today, the Insurance Fraud Enforcement Department
0:07:42 > 0:07:43of the City of London Police
0:07:43 > 0:07:46is on the trail of four suspects that it wants to arrest
0:07:46 > 0:07:49as part of an investigation into an alleged insurance fraud
0:07:49 > 0:07:50and money-laundering scam.
0:07:50 > 0:07:54The initial information about the case came from an insurance company,
0:07:54 > 0:07:57which suggested that an employee was acting fraudulently.
0:07:57 > 0:08:00There's a claims advisor who's been accessing claims,
0:08:00 > 0:08:05adding third party vehicles to those claims that are totally spurious,
0:08:05 > 0:08:07don't exist,
0:08:07 > 0:08:11and then having cheques issued to other people.
0:08:11 > 0:08:15The employee who is believed to have played a key role in the fraud
0:08:15 > 0:08:16has already been arrested.
0:08:17 > 0:08:20IFED is now looking to arrest and question
0:08:20 > 0:08:23those who allegedly received the fraudulent pay-outs
0:08:23 > 0:08:26and then paid a cut back to the initial suspect.
0:08:26 > 0:08:27And one of those people we're going to see now
0:08:27 > 0:08:30is one of those people who received a cheque.
0:08:30 > 0:08:32I think just over £3,000, so in total,
0:08:32 > 0:08:35the insurance company lost over £70,000,
0:08:35 > 0:08:38I think 11 cheques have been issued which are totally fraudulent
0:08:38 > 0:08:41and should never have happened.
0:08:41 > 0:08:44And the insider has obviously then taken a cut of those cheques.
0:08:44 > 0:08:47We are specifically looking for banking documentation,
0:08:47 > 0:08:50bank statements, bank account details.
0:08:51 > 0:08:53With four arrests to make, there's no time to waste
0:08:53 > 0:08:57as they follow up a lead for the whereabouts of the first suspect.
0:08:57 > 0:08:59Can we come in and have a word with you?
0:08:59 > 0:09:01They arrive at the first address
0:09:01 > 0:09:03and make contact with the mother of the first suspect.
0:09:03 > 0:09:05Your son, where is he?
0:09:05 > 0:09:06Will you allow me in to have a look?
0:09:06 > 0:09:10She tells IFED that her son is not at home,
0:09:10 > 0:09:11but the team searches the house to make sure.
0:09:11 > 0:09:14You keep telling us to wait, but we need to speak to your son. Where is he?
0:09:14 > 0:09:18The mother insists that she doesn't know where her son is.
0:09:18 > 0:09:22I know you're not well, but I need to speak to him. Where is he?
0:09:22 > 0:09:24She doesn't give them anything to go on,
0:09:24 > 0:09:27and its a frustrating result for the IFED team.
0:09:28 > 0:09:31She was unable to provide a contact number for him.
0:09:31 > 0:09:35How you can't know where one of your sons is, I find quite hard to believe.
0:09:36 > 0:09:42So it's on to the next address to search for suspect number two.
0:09:42 > 0:09:44Hello, it's the police, can you open the door, please?
0:09:47 > 0:09:49Once the door is eventually opened,
0:09:49 > 0:09:51they ask whether they can speak to the suspect.
0:09:52 > 0:09:54Its just the break they need,
0:09:54 > 0:09:57and they enter the house to question him further.
0:09:57 > 0:09:59We're from the Insurance Fraud Unit.
0:09:59 > 0:10:03It's believed you received a cheque to the value of £6,550,
0:10:03 > 0:10:06- which was paid into your bank account.- Mm-hmm.- OK?
0:10:06 > 0:10:09So in respect of that, I'm arresting you on suspicion of money-laundering.
0:10:09 > 0:10:11You do not have to say anything, but it may harm your defence
0:10:11 > 0:10:15if you do not mention when questioned something you'll later rely on in court.
0:10:15 > 0:10:19Anything you do say may be given in evidence. Do you understand?
0:10:20 > 0:10:23- It just doesn't make sense. - What doesn't make sense?
0:10:23 > 0:10:26We've been giving you... We don't know where it's gone.
0:10:31 > 0:10:34With fraud detection becoming ever more sophisticated,
0:10:34 > 0:10:36this next claimant certainly took a gamble
0:10:36 > 0:10:39when he tried to collect a pay-out he didn't deserve.
0:10:39 > 0:10:42Paul Hubbard is the head of counter-fraud
0:10:42 > 0:10:44for the insurance company involved.
0:10:44 > 0:10:47We received a claim, as we often do, from a customer
0:10:47 > 0:10:49saying that unfortunately he'd been broken into,
0:10:49 > 0:10:53and as a result of the break-in, he'd lost certain items.
0:10:53 > 0:10:57At first glance, it seemed like a routine household insurance claim.
0:10:57 > 0:11:00But then the policy-holder got back in touch
0:11:00 > 0:11:03to add on several high-value items to the claim.
0:11:03 > 0:11:05Four days afterwards, he was now claiming for two laptops.
0:11:05 > 0:11:10You'd normally notice something like that was missing from the word go.
0:11:10 > 0:11:13So as a result of this, the claim was now £29,000.
0:11:17 > 0:11:19The sudden large increase in the sum being claimed
0:11:19 > 0:11:22meant that the insurance company decided to investigate further.
0:11:22 > 0:11:25They discovered that there was no proof of purchase
0:11:25 > 0:11:26for many of the items.
0:11:28 > 0:11:32So as a result of that, we then instructed a specialist investigator
0:11:32 > 0:11:35to go and find out more about what had actually occurred here.
0:11:35 > 0:11:37They contacted the police,
0:11:37 > 0:11:40and we started to find there were discrepancies
0:11:40 > 0:11:44between the story he had told us when he notified us of the claim
0:11:44 > 0:11:46and the story that he'd given the police
0:11:46 > 0:11:49when he alerted them to the fact that there'd been a burglary
0:11:49 > 0:11:50to get a crime reference number.
0:11:52 > 0:11:54The inconsistencies were starting to mount up,
0:11:54 > 0:11:58and the investigators continued to look into the claim.
0:11:58 > 0:12:02What they uncovered next shed completely new light on the case.
0:12:02 > 0:12:05Our investigator found out that in this case,
0:12:05 > 0:12:09the customer had been to a casino prior to the burglary taking place.
0:12:09 > 0:12:12This person had lost over £67,000.
0:12:15 > 0:12:18It starts to give you a bit of a motive for what he might be doing.
0:12:18 > 0:12:20More evidence surfaced that put a question mark
0:12:20 > 0:12:21over the claimant's story.
0:12:21 > 0:12:27We also found that the receipts that he had provided for the two laptops
0:12:27 > 0:12:28were fake.
0:12:28 > 0:12:31That these laptops had never been purchased.
0:12:32 > 0:12:35It was all the evidence the insurer needed.
0:12:35 > 0:12:39So we presented this customer with the evidence that we'd found,
0:12:39 > 0:12:41so we'd found the fake receipts,
0:12:41 > 0:12:43we'd found out about his debt to the casino,
0:12:43 > 0:12:46that occurred before the burglary took place,
0:12:46 > 0:12:48and we declined his claim
0:12:48 > 0:12:51on the basis that we felt he was trying to commit fraud.
0:12:51 > 0:12:56The case didn't proceed to court, but having a claim rejected on the basis of fraud
0:12:56 > 0:12:58has major repercussions for the policyholder.
0:12:58 > 0:13:01It will have serious ramifications on their life,
0:13:01 > 0:13:04because they'll find it very difficult now to get insurance,
0:13:04 > 0:13:07they'll find it very difficult to get financial products,
0:13:07 > 0:13:09and it's something they have to tell people
0:13:09 > 0:13:11when they're taking out insurance.
0:13:11 > 0:13:15The would-be conman trying to compensate for his casino losses
0:13:15 > 0:13:19failed to come up with a watertight story,
0:13:19 > 0:13:22but he looks like a mastermind compared to another insurance cheat
0:13:22 > 0:13:24that Paul and his team also investigated.
0:13:30 > 0:13:34Mr Machin called us to explain that he'd had an accident,
0:13:34 > 0:13:38where he put his car into reverse thinking he was going forward,
0:13:38 > 0:13:42and then just accidentally reversed straight back into a lamp post
0:13:42 > 0:13:43at high speed, he said.
0:13:52 > 0:13:57He had his girlfriend and his girlfriend's son in the car with him
0:13:57 > 0:14:00and he explained to us that they were both injured
0:14:00 > 0:14:02as a result of him reversing into this lamp post.
0:14:09 > 0:14:13The policyholder didn't have the sort of insurance cover
0:14:13 > 0:14:15that would allow him to claim for the damage to his car.
0:14:15 > 0:14:18He was effectively claiming the injuries
0:14:18 > 0:14:23to his partner and his partner's son, who he said were both injured.
0:14:23 > 0:14:25He didn't go into any detail at that point
0:14:25 > 0:14:27as to how they were injured, how badly,
0:14:27 > 0:14:30but he did say that the son was going to hospital.
0:14:30 > 0:14:32The insurer immediately sensed
0:14:32 > 0:14:35that John Machin's story didn't quite ring true.
0:14:35 > 0:14:38Some of the things about the accident didn't add up
0:14:38 > 0:14:39to our experienced claims handlers,
0:14:39 > 0:14:42such as the fact that he said he reversed at speed
0:14:42 > 0:14:43into a lamp post.
0:14:43 > 0:14:48He was also very, very vague about the circumstances
0:14:48 > 0:14:51of a motoring conviction that he had as well.
0:14:51 > 0:14:54So all of those things put our experienced claims handler on alert
0:14:54 > 0:14:58that perhaps things weren't as Mr Machin was telling us.
0:14:58 > 0:15:01The claims handler followed the procedure
0:15:01 > 0:15:03for dealing with a suspicious claim.
0:15:03 > 0:15:06Started to ask a number of questions of Mr Machin.
0:15:06 > 0:15:08Just to extract more information from him.
0:15:08 > 0:15:12What we're looking for, effectively, is for people to tell us the truth.
0:15:12 > 0:15:17As a result of those questions, we were again increasingly concerned
0:15:17 > 0:15:19that the information wasn't accurate.
0:15:19 > 0:15:21Alarm bells were ringing by this stage,
0:15:21 > 0:15:24but there was no actual proof of fraud.
0:15:24 > 0:15:27However, at the end of the call, John Machin made a critical error
0:15:27 > 0:15:29when he failed to hang up properly,
0:15:29 > 0:15:32and gifted the insurer all the evidence they needed.
0:15:49 > 0:15:52When we heard that phone call for the first time,
0:15:52 > 0:15:56we were really surprised, horrified to a degree
0:15:56 > 0:15:59that somebody would be so blatant
0:15:59 > 0:16:02about the fraud that they're trying to commit and feel so good
0:16:02 > 0:16:05that they were taking money from effectively innocent customers
0:16:05 > 0:16:07who have to pay more premium.
0:16:08 > 0:16:10The insurer passed its evidence
0:16:10 > 0:16:13to the Insurance Fraud Enforcement Department
0:16:13 > 0:16:14of the City of London Police.
0:16:14 > 0:16:16At the time, the team had just been formed
0:16:16 > 0:16:19to fight the mounting problem of insurance fraud,
0:16:19 > 0:16:22and this was one of the first cases they investigated.
0:16:22 > 0:16:26They moved in to arrest John Machin and take him for questioning.
0:16:26 > 0:16:30When you're brought back to the police station there are various procedures entered into,
0:16:30 > 0:16:32he was subject to a taped interview.
0:16:32 > 0:16:35Questions were put by the investigating team
0:16:35 > 0:16:38which he flatly denied, so we said, "Thank you, Mr Machin,
0:16:38 > 0:16:41"would you be prepared to listen to this short recording?"
0:16:41 > 0:16:44And we pressed the play button and played the recording
0:16:44 > 0:16:45that the insurers had provided us with.
0:16:45 > 0:16:48His face was a little bit of a picture, I'm told.
0:17:01 > 0:17:04The case then proceeded to court, and he was found guilty.
0:17:06 > 0:17:09In this case, Mr Machin was convicted in court
0:17:09 > 0:17:10of insurance fraud.
0:17:10 > 0:17:14He received 200 hours community service
0:17:14 > 0:17:17and a four-month suspended prison sentence.
0:17:18 > 0:17:21It was the result the insurer wanted,
0:17:21 > 0:17:24and helped to send out a message to any other would-be fraudsters.
0:17:24 > 0:17:27I think people like Mr Machin see insurance companies
0:17:27 > 0:17:29as a giant pot of money that they can just dip into
0:17:29 > 0:17:31whenever they feel like.
0:17:31 > 0:17:33But that's far from being the case,
0:17:33 > 0:17:35especially now that IFED is actively pursuing those criminals
0:17:35 > 0:17:38who try and commit insurance fraud.
0:17:38 > 0:17:40The first conviction of any new unit is always a milestone,
0:17:40 > 0:17:42so this was a particularly pleasing one,
0:17:42 > 0:17:45and it was also an added bonus that it was a slightly amusing
0:17:45 > 0:17:47set of circumstances around that first one,
0:17:47 > 0:17:49so it's one we'll always remember.
0:17:52 > 0:17:55These days, all aspects of technology are used
0:17:55 > 0:17:58to combat insurance fraud, even social media.
0:17:59 > 0:18:02In the summer of 2009, an insurance company was contacted
0:18:02 > 0:18:06by a policyholder who'd had an unusual accident.
0:18:07 > 0:18:09Sarah Hill is the fraud partner
0:18:09 > 0:18:12at a firm of solicitors who worked on the case.
0:18:12 > 0:18:17The vehicle owner claimed that he had attended a fun day.
0:18:17 > 0:18:20It was a Ferrari fun day, where there was lots of events going on,
0:18:20 > 0:18:23but one of those events was that Ferrari owners
0:18:23 > 0:18:27could take their vehicle, be involved in actually
0:18:27 > 0:18:30taking members of the public around the track for a small fee.
0:18:33 > 0:18:35This fee was then donated to charity.
0:18:35 > 0:18:38The policyholder had spent the day giving rides in his Ferrari
0:18:38 > 0:18:40to raise money for good causes.
0:18:40 > 0:18:44But what started with such good intentions ended in disaster
0:18:44 > 0:18:46as the day drew to a close.
0:18:49 > 0:18:54The owner had suggested that he was on his way out of that fun day,
0:18:54 > 0:18:57when he'd lost control of the vehicle because of a greasy surface,
0:18:57 > 0:19:00and the vehicle had spun and hit a tree.
0:19:03 > 0:19:07The petrol tank caught fire, and the vehicle went up in flames.
0:19:09 > 0:19:13Luckily, the occupants of the car managed to scramble to safety.
0:19:14 > 0:19:16With the significant vehicle fire,
0:19:16 > 0:19:18the vehicle was declared a total loss.
0:19:18 > 0:19:20And the claim that had been presented
0:19:20 > 0:19:24was for the value of the vehicle, around £50,000.
0:19:26 > 0:19:30Such large claims are subject to investigation by insurance companies
0:19:30 > 0:19:33as a matter of course, and they looked in detail at the story.
0:19:33 > 0:19:36The owner had said that the accident occurred
0:19:36 > 0:19:38close to the entrance to the venue.
0:19:38 > 0:19:40But actually, when investigators had gone
0:19:40 > 0:19:43to look at the accident circumstances, the physical evidence
0:19:43 > 0:19:46didn't support the accident occurring close to the main gate.
0:19:46 > 0:19:49The traces of fire damage that were still present on site
0:19:49 > 0:19:51indicated that the accident had actually occurred
0:19:51 > 0:19:52away from the exit.
0:19:52 > 0:19:57With their suspicions aroused, the investigators took the unusual step
0:19:57 > 0:19:58of exploring social media
0:19:58 > 0:20:00for further evidence of what had happened.
0:20:00 > 0:20:04As you can imagine, it was quite a high-profile day,
0:20:04 > 0:20:05a fundraising event,
0:20:05 > 0:20:08it's quite unusual to have a Ferrari spin off the track
0:20:08 > 0:20:11and hit a tree and catch fire,
0:20:11 > 0:20:16so there was some, on local chatrooms, on social media,
0:20:16 > 0:20:19conversations taking place between members of the public
0:20:19 > 0:20:20that had actually attended the day.
0:20:20 > 0:20:24But it was a video of the accident recorded by a member of the public
0:20:24 > 0:20:26and posted to a popular internet site
0:20:26 > 0:20:29that particularly caught their eye.
0:20:29 > 0:20:33The YouTube footage helped us place the accident location.
0:20:33 > 0:20:36It was completely different to what the owner had actually alleged.
0:20:36 > 0:20:39But the footage on its own wasn't enough,
0:20:39 > 0:20:41so the investigators collected witness statements.
0:20:41 > 0:20:45What they discovered from people who were there on the day
0:20:45 > 0:20:47sent the owner's story up in flames.
0:20:47 > 0:20:51Their evidence indicated that it wasn't the owner of the vehicle
0:20:51 > 0:20:55that had been driving the Ferrari at the time of the accident,
0:20:55 > 0:20:58and in fact, it was his friend, who was uninsured.
0:20:58 > 0:21:01This was totally unexpected.
0:21:01 > 0:21:03Not only was the owner being untruthful
0:21:03 > 0:21:07about the location of the crash, he wasn't even driving at the time.
0:21:07 > 0:21:09This was to have massive consequences.
0:21:10 > 0:21:13In order to make a claim for the value of the vehicle
0:21:13 > 0:21:16under his policy of insurance, the Ferrari owner
0:21:16 > 0:21:20had to have been driving the Ferrari vehicle at the time of the accident.
0:21:20 > 0:21:24But since he wasn't, he'd be out of pocket to the tune of £50,000 -
0:21:24 > 0:21:26the cost of the car.
0:21:26 > 0:21:29This huge potential loss was what motivated him
0:21:29 > 0:21:32to lie to his insurer and submit a claim in which he falsely stated
0:21:32 > 0:21:35that he was driving at the time of the accident.
0:21:35 > 0:21:37He was not entitled to claim,
0:21:37 > 0:21:40and clearly put forward a fraudulent claim
0:21:40 > 0:21:42in alleging he was driving the vehicle.
0:21:42 > 0:21:46The case was passed to the authorities and proceeded to court.
0:21:46 > 0:21:48Initially, the Ferrari owner pleaded not guilty,
0:21:48 > 0:21:51which was very surprising to me
0:21:51 > 0:21:53in light of the extent of the overwhelming evidence.
0:21:53 > 0:21:57Later on, he did actually plead guilty to the offence.
0:21:57 > 0:22:02He received 200 hours unpaid work and a fine for his crime.
0:22:05 > 0:22:08Six months on from its formation,
0:22:08 > 0:22:11The Insurance Fraud Enforcement Department, IFED,
0:22:11 > 0:22:13is continuing to investigate suspected fraudsters.
0:22:13 > 0:22:15Can we come in and have a look?
0:22:16 > 0:22:19Today, they're on the trail of four suspects
0:22:19 > 0:22:21linked to a case of alleged money-laundering.
0:22:21 > 0:22:23They drew a blank at the first address,
0:22:23 > 0:22:26but the second suspect was home, and has just been arrested.
0:22:26 > 0:22:29I'm arresting you on suspicion of money-laundering.
0:22:29 > 0:22:32As they move upstairs to start searching for evidence,
0:22:32 > 0:22:34the suspect seems to be in shock.
0:22:34 > 0:22:36You understand why you've been arrested, don't you?
0:22:36 > 0:22:38It's in relation to a cheque for over £16,500
0:22:38 > 0:22:40that's gone into your bank account.
0:22:40 > 0:22:43- It's quite a lot of money, hence the arrest on suspicion of money-laundering.- OK.
0:22:43 > 0:22:45All right? OK.
0:22:45 > 0:22:48It's vital that the IFED team collects enough evidence
0:22:48 > 0:22:49to make the case stand up,
0:22:49 > 0:22:54and they gather together a range of potentially relevant documentation.
0:22:54 > 0:22:57Cash, passports, currency card...
0:22:57 > 0:23:00Suddenly, a breakthrough comes from the suspect.
0:23:00 > 0:23:02He's just made a significant statement,
0:23:02 > 0:23:04which we're taking note of, which he'll sign,
0:23:04 > 0:23:10he's admitted to his mother and to us that he has taken that cheque, accepted that cheque.
0:23:10 > 0:23:12He was approached apparently by a man on the street.
0:23:13 > 0:23:16The suspect is then taken to a local police station
0:23:16 > 0:23:21for further questioning, and the IFED team talks things through with his mother.
0:23:21 > 0:23:23We don't want to keep him in unnecessarily, so...
0:23:23 > 0:23:25You know, it just doesn't make sense.
0:23:25 > 0:23:30- What doesn't make sense?- You know... - Why he would do it?
0:23:30 > 0:23:31Not only that.
0:23:31 > 0:23:33If he did, where's the money gone?
0:23:33 > 0:23:35Cos he's at university, we've been giving him money...
0:23:35 > 0:23:37I know. We don't know where it's gone.
0:23:37 > 0:23:39So we'll find out when we interview him,
0:23:39 > 0:23:44and I'm sure you'll manage to get the information out of him when he comes home.
0:23:44 > 0:23:46The mother was distressed in the respect
0:23:46 > 0:23:50that obviously her son's just been arrested,
0:23:50 > 0:23:53and on speaking to Mum, she's brought her three children up
0:23:53 > 0:23:55to tell the truth and be honest,
0:23:55 > 0:23:59and I think she was more upset by the fact that he hasn't been honest.
0:23:59 > 0:24:02And has admitted that more or less to her.
0:24:05 > 0:24:09There are still arrests to be made, and IFED hits the road.
0:24:09 > 0:24:13Their destination is the family home of the third suspect.
0:24:13 > 0:24:16The door is answered by his mother...
0:24:16 > 0:24:19- Hello.- Hello.- Hiya. I'm DC Sibley from the City of London Police.
0:24:19 > 0:24:22- Mm-hmm.- It's in relation to a matter we're investigating
0:24:22 > 0:24:23to do with insurance fraud.
0:24:23 > 0:24:26..and again, they draw a blank, as they're told he's away.
0:24:26 > 0:24:29- OK, thank you very much indeed for your time.- Thank you.
0:24:29 > 0:24:32'She's informed me that he's at university, which is typical.'
0:24:32 > 0:24:34Another one bites the dust, on to the next one.
0:24:36 > 0:24:40The arrest of the fourth and final suspect at his family home is going to prove tricky.
0:24:40 > 0:24:42The last address we're going to...
0:24:42 > 0:24:45There are two people there with the same name.
0:24:45 > 0:24:50Again, the fourth suspect is alleged to have received a large cheque that was paid into his bank account.
0:24:50 > 0:24:53Good afternoon. City of London Police.
0:24:53 > 0:24:55This is my colleague, DCI Usman.
0:24:55 > 0:24:57The door is opened by one of the residents,
0:24:57 > 0:25:00but IFED still needs to positively identify the suspect.
0:25:00 > 0:25:05It's in relation to a cheque for £12,000 to this address.
0:25:05 > 0:25:08The man who opens the door can't seem to shed any light on the cheque,
0:25:08 > 0:25:10but Kate isn't prepared to leave it there.
0:25:10 > 0:25:13Can we come in and try and get to the bottom of this?
0:25:13 > 0:25:16The man explains that he's alone in the house.
0:25:16 > 0:25:18Kate talks to him about his other relatives,
0:25:18 > 0:25:22and it seems likely that the younger brother is the one that the police need to talk to.
0:25:22 > 0:25:25You know, that fits the profile of the other people
0:25:25 > 0:25:27that we've been arresting today, so...
0:25:27 > 0:25:30They call up the brother in question while he's still at work,
0:25:30 > 0:25:33and he asks if they can wait for him to finish.
0:25:33 > 0:25:35No. Doesn't work like that, sorry.
0:25:35 > 0:25:39IFED speaks to the family member further, and it turns out
0:25:39 > 0:25:41that in addition to the two relatives with the same name
0:25:41 > 0:25:43living at the address,
0:25:43 > 0:25:45there's a further relative who shares the name as well.
0:25:45 > 0:25:48No-one's admitting to it, which is not really a great surprise,
0:25:48 > 0:25:51cos it's a £12,000 cheque that's gone through the account.
0:25:51 > 0:25:55It's vital that a positive identification can be made
0:25:55 > 0:25:57so that the correct person is arrested.
0:25:57 > 0:26:00With so many people linked to one address with the same name
0:26:00 > 0:26:04and of a similar age, it's tricky to identify who is who.
0:26:04 > 0:26:08Kate makes a decision and speaks to the younger brother herself.
0:26:08 > 0:26:12We're City of London Police. We're up from London,
0:26:12 > 0:26:15going to get the full identification of all of you,
0:26:15 > 0:26:18and we'll ascertain what account this cheque was paid into.
0:26:18 > 0:26:21Cos if it is you, then we will come knocking. All right?
0:26:21 > 0:26:25He was helpful on the phone, he's given his mobile number and his full details,
0:26:25 > 0:26:26so we have all those now.
0:26:26 > 0:26:30Before they can make the arrest they need to investigate the bank account
0:26:30 > 0:26:34that the money was paid into so they can match it to the correct suspect.
0:26:34 > 0:26:36Bad judgment call to arrest all of them,
0:26:36 > 0:26:39cos we don't know which one it relates to.
0:26:39 > 0:26:42IFED's hard work eventually paid off,
0:26:42 > 0:26:45as they arrested seven people.
0:26:45 > 0:26:47The insider was sentenced to ten months in jail
0:26:47 > 0:26:50and three men were given suspended jail terms.
0:26:50 > 0:26:53The remaining three were given a caution.