0:00:03 > 0:00:07Insurance fraud in the UK is reaching epidemic levels.
0:00:07 > 0:00:10And it's costing us billions of pounds a year.
0:00:10 > 0:00:15Deliberate crashes, bogus personal injury claims,
0:00:15 > 0:00:17even fake deaths.
0:00:19 > 0:00:23The fraudsters are risking more and more to make a quick killing.
0:00:23 > 0:00:28And every year, it's adding up to £50 to your insurance bill.
0:00:31 > 0:00:33Insurers are fighting back.
0:00:33 > 0:00:35Armed with covert surveillance systems...
0:00:35 > 0:00:39The equipment that we have to use has to be cutting edge.
0:00:39 > 0:00:40It's as simple as that.
0:00:40 > 0:00:43..sophisticated data-analysis techniques...
0:00:43 > 0:00:47This is connected to a bank account and a second mobile phone number.
0:00:47 > 0:00:50..and a newly-formed dedicated police unit...
0:00:50 > 0:00:52Police! Get back!
0:00:52 > 0:00:56..they're catching the criminals red handed.
0:00:56 > 0:01:00All those conmen, scammers, cheats on the fiddle,
0:01:00 > 0:01:03now they're caught in the act and claimed and shamed.
0:01:10 > 0:01:15Today - a £750,000 claim comes under suspicion.
0:01:15 > 0:01:18It was very pertinent to the case
0:01:18 > 0:01:22that we showed exactly how much she was able to do on a day-to-day basis.
0:01:22 > 0:01:27A police fraud unit executes an early-morning raid on a suspect.
0:01:27 > 0:01:32I'm going to be questioning you about a no-claims discount. OK?
0:01:32 > 0:01:35And a stubborn fraudster sticks to his story.
0:01:35 > 0:01:37In the face of such overwhelming evidence,
0:01:37 > 0:01:41he wanted to try to find an excuse why he should still be paid.
0:01:45 > 0:01:48This is Joanne Kirk from Preston.
0:01:48 > 0:01:52In September 2001, she was injured in a car crash.
0:01:52 > 0:01:55The shunt left her with neck and shoulder pain,
0:01:55 > 0:01:58but her injuries seemed relatively minor.
0:01:58 > 0:02:00Well, this was an accident
0:02:00 > 0:02:02where Mrs Kirk was stationary at a roundabout
0:02:02 > 0:02:05and our customer hit her from behind.
0:02:05 > 0:02:07So this was a genuine accident.
0:02:07 > 0:02:10We had no doubt that the accident occurred.
0:02:10 > 0:02:13We also had no doubt that Mrs Kirk received injuries
0:02:13 > 0:02:15as a result of the accident.
0:02:15 > 0:02:18One year after the crash, Mrs Kirk's condition deteriorated.
0:02:18 > 0:02:21Complaining of extreme muscle spasms,
0:02:21 > 0:02:22chronic pain and exhaustion,
0:02:22 > 0:02:26she decided to quit her job as a university administrator.
0:02:26 > 0:02:29As well as making a claim for Disability Living Allowance,
0:02:29 > 0:02:32she began legal proceedings against the insurer of the driver
0:02:32 > 0:02:35who had crashed into her.
0:02:35 > 0:02:37The claim was handed to the insurer.
0:02:37 > 0:02:41Mrs Kirk's claim came to us about two years
0:02:41 > 0:02:43after the initial accident had happened.
0:02:43 > 0:02:46She was claiming for £750,000.
0:02:46 > 0:02:49To the experienced claims handlers at RBS,
0:02:49 > 0:02:53Joanne Kirk's physical deterioration didn't fit the usual pattern.
0:02:53 > 0:02:58We understand the types of injuries likely to come from accidents.
0:02:58 > 0:03:02We also understand how people normally recover from the accidents.
0:03:02 > 0:03:06So where we find someone whose injuries are inconsistent
0:03:06 > 0:03:08with the type of accident that's occurred,
0:03:08 > 0:03:11then we have to investigate in more detail.
0:03:11 > 0:03:13And that's what happened in Mrs Kirk's case.
0:03:13 > 0:03:16To get the full picture, the insurer needed to see
0:03:16 > 0:03:19how Mrs Kirk was going about her daily activities.
0:03:24 > 0:03:28If you want to spy on someone, this team of undercover investigators
0:03:28 > 0:03:32will get the job done using their highly-trained operatives.
0:03:32 > 0:03:36The operatives themselves have to have a huge amount of concentration.
0:03:36 > 0:03:40Ultimately, what we're seeking to do is maximise the footage that we get.
0:03:41 > 0:03:43And today, I'm on a two-operatives task
0:03:43 > 0:03:46with observation and surveillance on a Joanne Kirk.
0:03:46 > 0:03:49With the Kirk case, we were presented with an individual
0:03:49 > 0:03:54who was claiming physical disability.
0:03:54 > 0:03:57It was very pertinent to the case
0:03:57 > 0:04:02we showed exactly how much she was able to do on a day-to-day basis.
0:04:02 > 0:04:05So for us, it was about maximising the surveillance footage
0:04:05 > 0:04:10and showing her in every scenario that we found her in.
0:04:11 > 0:04:14Joanne Kirk had submitted a £750,000 claim.
0:04:14 > 0:04:20In that claim, she stated that she needed crutches when going outside.
0:04:22 > 0:04:27That she was unable to carry out the simplest of tasks without help.
0:04:27 > 0:04:30That she was unable to hold a pen.
0:04:30 > 0:04:33That she was unable to sit or stand comfortably.
0:04:34 > 0:04:38And she could only walk a maximum of five metres without stopping.
0:04:41 > 0:04:43In the spring of 2005,
0:04:43 > 0:04:47the surveillance company set about filming Mrs Kirk.
0:04:47 > 0:04:50In order to get a fair picture of her everyday life,
0:04:50 > 0:04:53the surveillance ops filmed her on several occasions
0:04:53 > 0:04:56spread over a period of 18 months.
0:04:56 > 0:05:00What they saw in the footage shocked the insurer.
0:05:00 > 0:05:03She can be seen now.
0:05:03 > 0:05:06What you see when you start to look at the surveillance picture
0:05:06 > 0:05:09is somebody going about their normal daily tasks.
0:05:09 > 0:05:11They're going for walks,
0:05:11 > 0:05:14they're going to cashpoints, they're going into shops,
0:05:14 > 0:05:16they're carrying bags.
0:05:16 > 0:05:19They're carrying out their normal daily life.
0:05:20 > 0:05:22One of the surveillance tapes
0:05:22 > 0:05:25shows Joanne Kirk on a 90-minute shopping trip.
0:05:30 > 0:05:35When we were filming her, she didn't exhibit any form of disability.
0:05:35 > 0:05:37It was central to the case itself
0:05:37 > 0:05:41in showing the courts that there was a deliberate fraud involved
0:05:41 > 0:05:43or a level of exaggeration
0:05:43 > 0:05:47that went way beyond just trying to elevate your claim.
0:05:47 > 0:05:49Mrs Kirk claimed that she could only walk
0:05:49 > 0:05:53a maximum of five metres before needing to stop.
0:05:53 > 0:05:55And that she used crutches when going out.
0:05:55 > 0:05:57After watching the footage,
0:05:57 > 0:06:01that was something that the insurer found hard to believe.
0:06:01 > 0:06:05When the final claim was submitted by Mrs Kirk's lawyers,
0:06:05 > 0:06:08we presented them with the evidence that we'd gathered over two years
0:06:08 > 0:06:12of all the things that she said that she couldn't do,
0:06:12 > 0:06:15but actually, our evidence demonstrated that she could.
0:06:15 > 0:06:20So immediately, they dropped the claim for £750,000
0:06:20 > 0:06:23and accepted £25,000.
0:06:23 > 0:06:28We were dealing with a lady who had clearly exaggerated her injuries
0:06:28 > 0:06:32in order to gain an increased payout through an insurance claim.
0:06:32 > 0:06:35But was clearly taking the mickey from the courts.
0:06:35 > 0:06:39Abusing the legal system and the process that sits behind it.
0:06:39 > 0:06:41When faced with the evidence,
0:06:41 > 0:06:46Joanne Kirk settled for a hugely-reduced payout of £25,000.
0:06:46 > 0:06:48That wasn't the end of it for her.
0:06:48 > 0:06:52She had attempted to fraudulently claim over £750,000.
0:06:54 > 0:06:57We didn't think it was right she should be able to walk away
0:06:57 > 0:07:01from a claim like that, from that kind of lie,
0:07:01 > 0:07:03without some kind of consequences.
0:07:03 > 0:07:06In an unprecedented move, the insurer hit back at Joanne Kirk
0:07:06 > 0:07:08and pursued the matter in court.
0:07:08 > 0:07:12We undertook what was a landmark proceeding at the time
0:07:12 > 0:07:16to bring a case against her for contempt.
0:07:16 > 0:07:20Now, that was something that no insurance company had done before.
0:07:20 > 0:07:24In May 2009, Joanne Kirk was found in contempt of court.
0:07:24 > 0:07:28Ordered to pay her own legal bill of £125,000,
0:07:28 > 0:07:31a £2,500 fine for contempt
0:07:31 > 0:07:34and half of the defendant's legal costs.
0:07:36 > 0:07:39It took a lot of time, it took a lot of effort
0:07:39 > 0:07:42and we had to be quite brave in what we were trying to do.
0:07:42 > 0:07:45But when we finally got to a conviction,
0:07:45 > 0:07:47we were really pleased that we were sending a message.
0:07:47 > 0:07:50We'd blazed a trail on behalf of insurers
0:07:50 > 0:07:52and set a precedent that people can't make claims
0:07:52 > 0:07:56that are totally fabricated or exaggerated
0:07:56 > 0:07:59and walk away from their lies without any consequences.
0:08:01 > 0:08:05An insurer spots a suspicious pattern of claims...
0:08:05 > 0:08:07Always in a remote road.
0:08:07 > 0:08:10Police were never called to the scene of the accident.
0:08:10 > 0:08:13..and a carpet fitter fits up his insurance company.
0:08:13 > 0:08:17He had told us that his foot was far too painful for him to work.
0:08:22 > 0:08:25In the fight against a growing problem of insurance fraud,
0:08:25 > 0:08:28an elite police squad have come together to form IFED -
0:08:28 > 0:08:31the Insurance Fraud Enforcement Department.
0:08:31 > 0:08:33Insurance fraud isn't a victimless crime.
0:08:33 > 0:08:38£50 of each premium you pay each year goes to the fraudsters.
0:08:38 > 0:08:40We've been set up to tackle that problem.
0:08:40 > 0:08:45This dedicated team works tirelessly to bang up the crooks and conmen
0:08:45 > 0:08:47getting rich off other people's money.
0:08:47 > 0:08:50Police! Get back!
0:08:50 > 0:08:53We intend to create a climate of fear for the fraudster.
0:08:53 > 0:08:57There's every chance an IFED detective may knock on their door
0:08:57 > 0:08:59to arrest them for committing an insurance fraud.
0:08:59 > 0:09:02Police! Don't move! Stay where you are!
0:09:02 > 0:09:06By April 2012, after only six months of operating,
0:09:06 > 0:09:09they had already busted 80 fraudsters,
0:09:09 > 0:09:12adding up to £12 million of fraud under investigation.
0:09:14 > 0:09:16These people are criminals.
0:09:16 > 0:09:18These are nasty people.
0:09:18 > 0:09:21They don't go out to work on a Monday morning like most people do.
0:09:21 > 0:09:24Their work is submitting insurance fraud claims.
0:09:28 > 0:09:32IFED doesn't just deal with large fraud gangs
0:09:32 > 0:09:33running crash-for-cash rings.
0:09:33 > 0:09:36It tackles insurance fraud of any type and scale.
0:09:36 > 0:09:40Today, it's raiding the property of a man
0:09:40 > 0:09:42suspected of lying on his motor insurance form.
0:09:43 > 0:09:48He has submitted a forged no-claims discount letter
0:09:48 > 0:09:51in order to show that he's a lower risk and to get a lower premium.
0:09:51 > 0:09:55The actual gain in this case isn't that great.
0:09:55 > 0:09:58It's, um...somewhere between £500 and £1,000,
0:09:58 > 0:10:00which is the discount he got
0:10:00 > 0:10:02from lying about his no-claims history.
0:10:02 > 0:10:06We deal with criminals, all the way from the most organised
0:10:06 > 0:10:08down to the very low level of fraudsters.
0:10:08 > 0:10:11And the person I'm going to arrest today
0:10:11 > 0:10:14does fit into the very low level, opportunist category.
0:10:14 > 0:10:17By tackling cases all across the spectrum,
0:10:17 > 0:10:23we can make it clear to people that insurance fraud is unacceptable.
0:10:23 > 0:10:25The small four-man unit from IFED
0:10:25 > 0:10:29prepare to enter the suspect's property.
0:10:29 > 0:10:32We've come here from the City of London Police.
0:10:32 > 0:10:34We need to get access to the building.
0:10:34 > 0:10:36- Would you mind buzzing us in? - 'OK.'- Thank you.
0:10:36 > 0:10:37'Door's opening.'
0:10:43 > 0:10:46KNOCKS ON DOOR
0:10:50 > 0:10:52KNOCKS ON DOOR
0:10:56 > 0:10:59The IFED team can hear some activity behind the door,
0:10:59 > 0:11:00but no-one is answering.
0:11:01 > 0:11:04KNOCKS ON DOOR
0:11:05 > 0:11:09Can you open the door, please? It's the police.
0:11:09 > 0:11:13- City of London Police. Is- BLEEP- here, please?- Yeah.
0:11:13 > 0:11:17- Is that the bathroom or the bedroom? - The bedroom.- OK.
0:11:17 > 0:11:20- Mr- BLEEP,- Alex Cooley, City of London Police.
0:11:20 > 0:11:23I'm arresting you for fraud by false representation
0:11:23 > 0:11:26in relation to a forged no claims discount document.
0:11:26 > 0:11:28The reason it's necessary for me to arrest you is to look
0:11:28 > 0:11:32for any documentation relating to the alleged fraud.
0:11:32 > 0:11:34- Let me change my clothes. - I'll let you get changed, yeah.
0:11:34 > 0:11:37- Where are you planning to get changed? In the bathroom?- Bathroom.
0:11:37 > 0:11:39I'm washing my teeth.
0:11:39 > 0:11:43OK, you need to get changed under the supervision of my colleague.
0:11:43 > 0:11:46We need to search the suspect's bedroom
0:11:46 > 0:11:49and any other common areas that he might be keeping
0:11:49 > 0:11:52documentation in relation to the insurance fraud.
0:11:52 > 0:11:57When we've completed the search, we'll be taking the suspect back to Bishopsgate Police Station.
0:11:57 > 0:12:01Just to explain what it's about... OK. But I'm interested...
0:12:01 > 0:12:03I'll write it down.
0:12:03 > 0:12:06IFED's search is being delayed by the suspect.
0:12:06 > 0:12:10I'm going to be questioning you about a no claims discount, OK?
0:12:10 > 0:12:13I'm going to have to quickly have to search your pockets.
0:12:21 > 0:12:24I'm looking for any documentation
0:12:24 > 0:12:28relating directly to the claim we're investigating,
0:12:28 > 0:12:32so anything relating to that insurance company and the other
0:12:32 > 0:12:37insurance company which was used for the forged no claims discount.
0:12:37 > 0:12:39That's yours. OK.
0:12:39 > 0:12:42The stuff that will be left behind is being left on the floor here.
0:12:42 > 0:12:45It's essential the team finds the documents linked to the claim.
0:12:45 > 0:12:49TI Alex Cooley needs to get the suspect to start cooperating.
0:12:49 > 0:12:52- That's your bank statement, yeah?- Yeah.- OK.
0:12:52 > 0:12:55- That's the amount I'm paying every...- OK.- That's fine.
0:12:55 > 0:12:58You can bring that with you. OK?
0:12:58 > 0:12:59TI Cooley must find
0:12:59 > 0:13:02the documentation he needs to build his case.
0:13:03 > 0:13:07We're looking for a bank statement on around the second of February.
0:13:14 > 0:13:16So that's May to June.
0:13:16 > 0:13:20- 2009 or...?- Second of February 2012.
0:13:20 > 0:13:23I just found the documentation in this drawer.
0:13:23 > 0:13:28- OK.- Oh, the... - You can change in the car.
0:13:30 > 0:13:35- The second of February 2012. - So if we go back.
0:13:37 > 0:13:38I've got this statement here.
0:13:38 > 0:13:40Could that be the one from the second of February?
0:13:40 > 0:13:43INDISTINCT RESPONSE
0:13:44 > 0:13:46OK, we'll have to keep looking for it.
0:13:46 > 0:13:48Yeah, yeah. No problem.
0:13:50 > 0:13:53Suspect took out a motor insurance policy.
0:13:53 > 0:13:57He declared that he had five years no claims discount.
0:14:03 > 0:14:06Personal injury insurance exists to help us when
0:14:06 > 0:14:11due to an accident we are unable to work or need money for extra care.
0:14:11 > 0:14:15And like motor insurance, it's being abused by dishonest claimants.
0:14:17 > 0:14:21The number of personal injury claims received by insurers
0:14:21 > 0:14:26leapt 72% between 2002 and 2010,
0:14:26 > 0:14:28a figure that's set to rise.
0:14:33 > 0:14:38July 2008, three months ago this man broke his foot whilst at work.
0:14:38 > 0:14:42The gentleman had injured his foot, broken some bones in it,
0:14:42 > 0:14:44and was unable to work.
0:14:44 > 0:14:46So under the terms of the policy,
0:14:46 > 0:14:51we were able to pay him for his inability to work.
0:14:53 > 0:14:56He worked as a carpet fitter, but being self-employed,
0:14:56 > 0:14:59hadn't earned a penny since sustaining the injury.
0:14:59 > 0:15:04Despite his lack of income, the carpet fitter was safe financially.
0:15:04 > 0:15:05He had personal injury cover,
0:15:05 > 0:15:10and having supplied adequate medical notes, his insurer had paid out.
0:15:10 > 0:15:12As a result of his injuries,
0:15:12 > 0:15:17he was unable to carry out his full duties of laying a carpet.
0:15:17 > 0:15:21He couldn't drive, the pain was too much for him to work.
0:15:21 > 0:15:24So that was... Under the terms of the policy,
0:15:24 > 0:15:28we would pay him until he was able to return to work.
0:15:28 > 0:15:32We were making benefit payments to the claimant
0:15:32 > 0:15:34for a period of several months.
0:15:34 > 0:15:38He'd broke his foot in, I think, the April
0:15:38 > 0:15:40and for some three months after that,
0:15:40 > 0:15:44was receiving regular payments from us as part of his insurance cover.
0:15:44 > 0:15:49The claim in total was in the region of £2,300.
0:15:49 > 0:15:51Three months after the accident,
0:15:51 > 0:15:56his insurer attempted to contact him for an update on his condition.
0:15:57 > 0:16:03We found it very difficult to get hold of him after some months...
0:16:03 > 0:16:05some months after the injury. He wasn't answering his telephone,
0:16:05 > 0:16:09we weren't able to get updates on his medical condition or to find out
0:16:09 > 0:16:12if the plaster had been removed and if he was able to return to work
0:16:12 > 0:16:15some three months after the initial injury to his foot.
0:16:15 > 0:16:19Three days after failing to get hold of the carpet fitter,
0:16:19 > 0:16:22the insurer was handed some intriguing information,
0:16:22 > 0:16:26in the form of a tip-off from a member of the public.
0:16:26 > 0:16:29We have a wide network of people with whom
0:16:29 > 0:16:31we work in the insurance industry.
0:16:31 > 0:16:34And that can be repairers, engineers, loss adjusters
0:16:34 > 0:16:36and even members of the public.
0:16:36 > 0:16:39And all of those are often willing to let us know where
0:16:39 > 0:16:45they feel that circumstances of an insurance claim are suspicious.
0:16:45 > 0:16:47The informant called the insurer,
0:16:47 > 0:16:49stating that the carpet fitter had been seen working.
0:16:49 > 0:16:53Potentially, the insurer was looking at a fraudulent claim.
0:16:53 > 0:16:57So they reacted with one of their most effective tools.
0:16:57 > 0:17:00The next step for us, having received the tip-off,
0:17:00 > 0:17:03was to send out some surveillance.
0:17:03 > 0:17:08We sometimes do this in cases where we need to gather evidence
0:17:08 > 0:17:12to back up our suspicions that all is not as it should be.
0:17:12 > 0:17:15And when they received the report back from the surveillance team...
0:17:15 > 0:17:16We were shocked.
0:17:16 > 0:17:19Okey doke, thanks for that. Lovely.
0:17:19 > 0:17:22This is what they saw.
0:17:22 > 0:17:24The surveillance team found that
0:17:24 > 0:17:26the carpet layer was not only working,
0:17:26 > 0:17:30he was driving his vehicle, he wasn't in plaster.
0:17:30 > 0:17:34And we had footage of him carrying heavy carpet rolls
0:17:34 > 0:17:37and fitting the carpet in somebody's house.
0:17:37 > 0:17:40When we had eventually managed to get hold of him,
0:17:40 > 0:17:45he had told us that his foot was far too painful for him to work,
0:17:45 > 0:17:48that he was suffering particular pains in the evening.
0:17:48 > 0:17:52Perhaps not surprising after the amount of work he'd been doing,
0:17:52 > 0:17:53carrying carpets all day.
0:17:53 > 0:17:56Confronted with such hard evidence,
0:17:56 > 0:17:59most people would back down and retract their fraudulent claim.
0:17:59 > 0:18:01Not the carpet fitter.
0:18:02 > 0:18:05The carpet fitter claimed that the footage was obtained
0:18:05 > 0:18:07on a day when he was testing his foot.
0:18:07 > 0:18:11But the suspect was filmed working for over six hours.
0:18:11 > 0:18:13This was, in the eyes of the insurer,
0:18:13 > 0:18:16more than enough time to test his foot.
0:18:16 > 0:18:18I was surprised that he wanted to,
0:18:18 > 0:18:22in the face of such overwhelming evidence,
0:18:22 > 0:18:27try to find an excuse why he should still be paid.
0:18:27 > 0:18:30In court, his excuses proved futile.
0:18:30 > 0:18:35The carpet fitter was ordered to pay back the £1,672 in payouts
0:18:35 > 0:18:37he had received,
0:18:37 > 0:18:41and was landed with the bill for the insurers' investigation and legal costs.
0:18:41 > 0:18:42With the added interest,
0:18:42 > 0:18:47he was looking at a bill totalling almost £9,000.
0:18:47 > 0:18:50I'm happy that we have the money back
0:18:50 > 0:18:54and that it's meant that we haven't paid out for a fraudulent claim.
0:18:54 > 0:18:57I would like to see deterrent measures,
0:18:57 > 0:19:00I would like to see a strong message sent out.
0:19:00 > 0:19:02People who make exaggerated claims, I think,
0:19:02 > 0:19:07should consider the impact it has on the millions of law-abiding
0:19:07 > 0:19:10and honest policy holders, who all have to pay for it.
0:19:10 > 0:19:12This is not a victimless crime.
0:19:12 > 0:19:15These people are not, you know,
0:19:15 > 0:19:19taking money out of the system or some faceless insurance company.
0:19:19 > 0:19:21It's all going back to the innocent people
0:19:21 > 0:19:23who have to pay their premiums.
0:19:34 > 0:19:36It's 2005.
0:19:36 > 0:19:39A fraud ringleader is gathering foot soldiers to take part
0:19:39 > 0:19:42in an audacious plot against an insurer.
0:19:42 > 0:19:43If successful,
0:19:43 > 0:19:48he could be masterminding one of the biggest crash-for-cash scams ever.
0:19:54 > 0:19:59Standing in his way is an insurance industry determined to stamp out
0:19:59 > 0:20:02the increasing number of these bogus crashes.
0:20:07 > 0:20:10Later that year, a large insurer became suspicious
0:20:10 > 0:20:15after receiving a number of claims that seemed to be linked.
0:20:15 > 0:20:19We started to see an unusual amount of claims all coming out
0:20:19 > 0:20:23of the same depot of this big telecommunications company.
0:20:23 > 0:20:25Within a very short space of time,
0:20:25 > 0:20:28and they all seemed to be of very similar nature.
0:20:28 > 0:20:32The cars were always full of people, always on a remote road.
0:20:32 > 0:20:36Police were never called to the scene of the accident.
0:20:36 > 0:20:39Feeling sure that the claims were all linked, the insurer called on
0:20:39 > 0:20:42the help of the telecommunications company being targeted.
0:20:42 > 0:20:46The telecommunications company were able to release employment records,
0:20:46 > 0:20:50which then gave us links between the individuals involved.
0:20:50 > 0:20:52All of the alleged smashes involved
0:20:52 > 0:20:55individuals who worked as sales reps for the company.
0:20:55 > 0:21:00January 2005 to June 2005, a lot of them joined, a lot of them left,
0:21:00 > 0:21:02and that's when we saw the spike.
0:21:02 > 0:21:05The connections continue to mount.
0:21:05 > 0:21:07We also found out from employment records
0:21:07 > 0:21:10that a lot of these guys worked together previously.
0:21:10 > 0:21:13By this point, the insurer was convinced that the sales reps
0:21:13 > 0:21:16had been using their company cars in staged crashes in order to
0:21:16 > 0:21:20make money from their company's policies.
0:21:20 > 0:21:24But this was a big operation. There had to be a ring leader.
0:21:24 > 0:21:27The insurer still didn't know who that was.
0:21:27 > 0:21:32At the time, this was the biggest conspiracy fraud involving
0:21:32 > 0:21:36fake car crashes against one insurance company.
0:21:36 > 0:21:39Total of 49 claims. The value of the fraud
0:21:39 > 0:21:43if successful would have been in excess of £1.3 million.
0:21:43 > 0:21:45In the hunt for the ringleader,
0:21:45 > 0:21:48the insurer turned its attention to the details of the crash victims.
0:21:48 > 0:21:51In terms of the injury claims, they were all whiplash.
0:21:51 > 0:21:55Very difficult to diagnose. Very difficult to disprove.
0:21:55 > 0:21:59Furthermore, the insurer found that, just like the sales reps,
0:21:59 > 0:22:03there was an uncanny coincidence with the victims too.
0:22:03 > 0:22:06The people in the other cars were all friends and family.
0:22:08 > 0:22:11Suspecting that the smash victims were part of the scam too,
0:22:11 > 0:22:14the insurer took its research to the police.
0:22:15 > 0:22:19The police questioned all the people involved in the crashes.
0:22:19 > 0:22:22One name cropped up time and time again,
0:22:22 > 0:22:25that of the man at the centre of the scam...
0:22:28 > 0:22:31..fraud ringleader Darren Duvall,
0:22:31 > 0:22:34a 38-year-old butcher.
0:22:34 > 0:22:35How he recruited them was interesting.
0:22:35 > 0:22:37He would sit in McDonalds,
0:22:37 > 0:22:41watched the same team of sales reps come in for their team breakfast.
0:22:41 > 0:22:45He then approached them, he approached the team leader,
0:22:45 > 0:22:47which he recruited first, and said,
0:22:47 > 0:22:51"If you can give me your details, I'll give you £1,000."
0:22:51 > 0:22:55So in total, you're talking maybe £40,000, £50,000,
0:22:55 > 0:22:58going between the whole group of foot soldiers.
0:22:58 > 0:23:02Had his plan succeeded, from his humble fast food cafe headquarters,
0:23:02 > 0:23:04his scheme could have cost the insurer
0:23:04 > 0:23:07a massive £1.5 million.
0:23:07 > 0:23:09I do believe the ringleader, at a time,
0:23:09 > 0:23:12thought he was going to get away with this.
0:23:12 > 0:23:15Erm... He was very confident,
0:23:15 > 0:23:18the way he recruited his foot soldiers,
0:23:18 > 0:23:22the way he went about this, the way he planned this, executed it.
0:23:22 > 0:23:24Very well organised and I do believe he thought
0:23:24 > 0:23:26he was going to get away with it.
0:23:26 > 0:23:30This massive organised crime had been busted.
0:23:30 > 0:23:3425 defendants were charged with conspiracy to defraud.
0:23:34 > 0:23:37It took five days for the court to process them.
0:23:37 > 0:23:40Eight individuals received custodial sentences.
0:23:40 > 0:23:43The longest, three years, being handed to the ringleader,
0:23:43 > 0:23:45Darren Duvall.
0:23:45 > 0:23:48In terms of how I felt and how Allianz felt,
0:23:48 > 0:23:51it was a very satisfying outcome.
0:23:51 > 0:23:56It sent out a message that insurance fraud, you're going to get caught.
0:23:59 > 0:24:02I'm arresting you for fraud by false representation.
0:24:02 > 0:24:05Today, IFED is raiding the property of a man
0:24:05 > 0:24:09suspected of lying on an insurance application.
0:24:09 > 0:24:11One piece of evidence TI Cooley is keen to get hold of
0:24:11 > 0:24:13is a bank statement.
0:24:13 > 0:24:16- OK, we'll have to keep looking for it.- Yeah, yeah. No problem.
0:24:16 > 0:24:19It's not the bank statement, but TI Cooley thinks he may have
0:24:19 > 0:24:23come across some potentially incriminating evidence,
0:24:23 > 0:24:27paperwork directly relating to the suspect's insurance application.
0:24:27 > 0:24:31- OK, I send this to them.- OK, that's fine.- That's the letter.
0:24:31 > 0:24:33If you want to place that on the bed,
0:24:33 > 0:24:34I'm just going to look....
0:24:34 > 0:24:37This might be relevant because it refers to the vehicle
0:24:37 > 0:24:39registration number I'm interested in.
0:24:39 > 0:24:43If we can seize this pile of documentation and those phones and a wallet.
0:24:43 > 0:24:46We'll keep the wallet out separately.
0:24:48 > 0:24:50OK, where are your shoes?
0:24:55 > 0:25:00I've seized a lot of miscellaneous documentation. I think...
0:25:00 > 0:25:04Did we ever get that bank statement from the second of February?
0:25:04 > 0:25:07- No, we didn't find it. - No, it went back to March.
0:25:07 > 0:25:10If need be, we can get that information from the bank.
0:25:10 > 0:25:13So on that basis, I think we've got everything we need.
0:25:17 > 0:25:20I'm just going to... If you put your arms over to that side, please.
0:25:20 > 0:25:22Both arms over there.
0:25:24 > 0:25:27I arrested him for fraud by false representation,
0:25:27 > 0:25:30in relation to a forged no claims discount document.
0:25:30 > 0:25:34In his bedroom wardrobe, he'd very helpfully kept a file
0:25:34 > 0:25:37of exactly what he'd sent to the insurance company.
0:25:37 > 0:25:41And there in a little plastic folder was the forged no claims document.
0:25:41 > 0:25:44The suspect took out a motor insurance policy.
0:25:44 > 0:25:45And when taking out the policy,
0:25:45 > 0:25:48he declared that he had five years no claims discount.
0:25:48 > 0:25:51The suspect sent them a document
0:25:51 > 0:25:53purporting to be the no claims discount
0:25:53 > 0:25:56and that document has been proved to be a forgery.
0:25:56 > 0:25:59- Do you understand why you're here? - Yeah.
0:25:59 > 0:26:00He didn't look too shocked, though.
0:26:00 > 0:26:03I think he knew potentially what was coming.
0:26:03 > 0:26:05I've authorised your detention
0:26:05 > 0:26:08so the officers can interview you regarding the allegation.
0:26:12 > 0:26:14We're trying to crack down at the moment
0:26:14 > 0:26:16on a whole load of forged documents,
0:26:16 > 0:26:19which are circulating around the country.
0:26:19 > 0:26:22We'll do your fingerprints now, OK?
0:26:24 > 0:26:27We are now picking up a whole number of suspects,
0:26:27 > 0:26:30trying to build together a picture of what's going on.
0:26:30 > 0:26:33With the evidence gathered at the flat and the suspect cooperating,
0:26:33 > 0:26:37the IFED team is happy with the outcome of the raid.
0:26:37 > 0:26:38After further questioning
0:26:38 > 0:26:42he was later cautioned for fraud by false representation.