Episode 8 Claimed and Shamed

Insurance fraud in the UK is reaching epidemic levels

and it's costing us billions of pounds every year -

deliberate crashes, bogus personal injury claims, even phantom pets.

The fraudsters are risking more and more to make a quick killing.

And every year, it's adding up to £50 to your insurance bill.

Insurers are fighting back, armed with covert surveillance systems...

There's the subject out the vehicle.

..sophisticated data analysis techniques

and highly skilled, dedicated police units.

Stay where you are! They're catching the criminals red-handed.

All those con men, scammers and cheats on the fiddle, now they're caught in the act

and claimed and shamed!

Today, a country pub goes up in smoke

and things get heated for a pair of fire-starting fraudsters.

It showed Dean and Melinda looking for the bag that we had recovered

and a most unusual response to that.

Almost hysterical.

The specialist police unit IFED shuts down a gang of motor insurance fraudsters.

I don't think they expected to get caught so quickly, but ultimately, most fraudsters will get caught.

And a con man's elaborate stag do cover story starts to unravel.

Despite travelling to Edinburgh for a stag weekend, there is no luggage whatsoever in the minibus.

In July 2011, a huge fire broke out at the Tollhouse pub in Lymington in the New Forest.

The flames spread rapidly, cutting off people trapped on the upper floor.

The emergency services were called to what had quickly become a life-or-death situation.

Justin Norris is from Hampshire Police. The fire was in the early morning and we attended the scene

within five minutes of the call from the fire service.

As the fire threatened to rage out of control, the priority was to get everyone out safely.

Duncan White is a crew manager with Hampshire Fire and Rescue Service. It was a very severe fire.

You could see why the people were trapped upstairs.

The fire in the stairwell was the reason why the people were trapped at the first floor

because it compromised their means of escape.

At great risk to their own safety, the fire officers entered the building

and managed to get everyone out, undoubtedly saving their lives.

According to the emergency call from Dean and Melinda Thomas who owned the pub,

the devastating blaze was the result of foul play.

They suspected a burglary, somebody tried to break into their premises.

We started to treat it as a scene of a crime.

The fire was so intense, it was a miracle no-one had been seriously hurt.

The whole pub was completely, 100% smoke-damaged.

With the blaze finally out, the police began their investigation

by talking to the owners about the events of that night, in particular, the suspected burglary.

Dean had been awoken, had come downstairs, having heard a noise of smashing glass,

looked around the premises, didn't find anything to start with, went back upstairs.

Within half an hour, the fire alarms had gone off. He alerted the rest of the people in the house

and he discovered a fire downstairs.

Dean Thomas believed the burglar was after the pub's takings.

He reported that some money had been stolen from downstairs

and they had tried to cover their tracks by causing this fire.

However, there was a fundamental problem with his version of events.

It's highly unusual for a burglar to break into a premise

and to set fire to it without any other motive or reason to do so.

Dean's story simply didn't ring true and suspicions were immediately aroused.

The police examined the scene of the fire for further evidence,

starting with the smashed window, the burglar's supposed entry point.

He couldn't have got in without disturbing the glass fragments on the windowsill. They weren't disturbed.

Their next discovery threw even more doubt on Dean's story.

We found a petrol can that was recovered from an outhouse

that had been concealed behind some items, which was unusual as well.

This tied in with evidence from the fire officers who had fought the blaze.

In a normal domestic fire, it's a grey smoke, but this was a very black smoke.

The colour of the smoke and the discovery of the hidden petrol can

indicated that the fire was fuelled by an accelerant like petrol.

Dean's story was unravelling fast

and the police looked into the couple's finances as a possible motivation for arson.

It became apparent that the Thomases were in significant debt.

Evidence was mounting that the fire had been started by the Thomases for an insurance pay-out,

but conclusive proof was lacking until a chance discovery in the grounds of the property.

We recover a bag of clothing. We don't know whose clothing it is.

But we discover it's outer clothing, tracksuit bottoms and a top,

and some domestic gloves.

We didn't know why it was there or whose it was, but we suspected it was something to do with the fire.

Sensing a chance to catch the culprits red-handed,

the police set up surveillance with a hidden camera.

We thought whoever put the bag there might come back to try and recover it to dispose of it

because we believed this bag of clothing had been used to start the fire.

Unlike fraudsters, the camera never lies

and the surveillance footage meant that Dean Thomas's story went up in smoke.

It showed Dean and Melinda looking for the bag that we had recovered

and a most unusual response to that.

Almost hysterical. It looks like they're arguing about it

and Melinda is throwing her arms around a bit as well.

Melinda was confronted by the police and even then the lies continued.

She said to us that the reason why she reacted that way

was because she believed police officers had disturbed the grave of her dog.

But she convinced no-one

and it was obvious her hysterical response was because she knew they had been found out.

They fire had been started deliberately and they hadn't done a good job of covering their tracks.

It was clear the motive was financial.

They wanted to get out of the contract with the brewery whose premises it was

and had already asked to do that prior to the fire taking place.

The case eventually reached court, but despite the weight of evidence against them,

the couple maintained their innocence.

They pleaded not guilty and it was a jury that convicted them.

Dean Thomas was sentenced to six years in prison.

Melinda Thomas was sentenced to three years in prison.

Not only were they driven by greed, but worse, they endangered the lives

of the people in the pub and fire-fighters who put out the fire.

The heavy sentences reflected the seriousness of their crime.

Unfortunately for them and fortunately for everyone else, we found out what happened in the end.

A fraud gang is scuppered after making an outrageous claim.

To put a claim in on a vehicle they were driving and/or involved with

that did not have damage consistent to what has been portrayed was rather foolish.

And it's insurance company in one corner, fake Olympic boxer in the other.

It's not untypical for insurance fraudsters to have aliases.

I guess what's surprising in this case is that he sought to bring such attention to himself.

Combating the ever-increasing threat of insurance fraud

is an elite police squad known as IFED, the Insurance Fraud Enforcement Department.

IFED is a 35-strong unit that works tirelessly

to hunt down and prosecute insurance fraudsters

throughout England and Wales.

From now on, fraudsters need to watch their backs.

In only 18 months, we've arrested over 300 people.

We will start to see a reduction in insurance fraud in this country.

It's highly likely, if you commit any insurance fraud, you will get caught.

Police! Don't move! Stay where you are!

In 2012, IFED travelled to Torquay

to carry out a raid on a gang of fraudsters,

believed to be behind various multi-vehicle accidents.

The collisions were staged in order to cash in on motor insurance policies.

It all started with a seemingly innocuous accident in 2009.

Mike Brown from Direct Line was on the case.

The accident in 2009

involved three vehicles.

One was driven by Mr Baker,

a second vehicle driven by Mr Cash and a third vehicle driven by Miss Shears.

Mr Baker lost control of his vehicle

and collided with the two vehicles driven by Miss Shears and Mr Cash.

At that stage, there was nothing to suggest fraud.

There were no suspicious circumstances surrounding that claim.

It entered the claims process and the claims were eventually settled for all three vehicles.

DC Kate Sibley from IFED also worked on the case.

Claims were going in for personal injury, damage to the cars,

damage to property within the cars, loss of earnings, hire vehicles.

Whatever they could put a claim in for, they put a claim in.

In total, all three claims were settled for approximately £15,000.

There the matter would have rested, had it not been for another accident two years later.

Striking similarities to the claim from 2009 led to an investigation being launched.

Mr Baker appeared to be the offending driver on both occasions. There were three vehicles again involved.

All parties knew each other. It raised concerns.

All those involved in the accident were linked and alarm bells started to ring.

The cars from the second accident were then examined by an expert employed by the insurers.

The crash investigator said how they said the accident happened didn't match up with the vehicle damage,

so in his opinion, it was unlikely that it actually took place.

To put a claim in on a vehicle that they were driving and/or involved with

that did not have damage consistent to what has been portrayed was rather foolish.

It was a big mistake and it alerted the insurers to other aspects of the claim which raised suspicions,

not least the huge amount of money involved.

In total, £80,000 was the amount of claims

that would have been paid

if we had not intervened.

That intervention came in the form of an early morning IFED raid.

The team started with a visit to Jonathan Baker

who had driven into the back of the other vehicles in both accidents.

It was 6.30am when the IFED team arrived at the address.

The father of the suspect came out to meet them and wanted to know what was going on.

We're from the City of London Police. That's my ID, sir. We're looking for a Mr Jonathan Baker.

What's it for? We want to speak to him in connection to an insurance fraud we believe he's involved in.

That's all the detail I can give you, sir.

I can speak to him more about it, but I can't yourself. I take it you're his father? Yeah.

He's in bed and he doesn't need to be disturbed. Well, we need to speak to him, sir.

He revealed his son was in and Baker eventually came to talk to IFED.

I understand you're off work? Yeah.

We need to speak to you today. OK.

We need to interview you in relation to a matter that's been referred to us. Right.

In relation to what we suspect is an insurance fraud dating back to January of last year. Right, OK.

That's it. Jonathan Baker, you're under arrest.

You don't have to say anything, but it may harm your defence

if you do not mention something you later rely on in court.

He was taken to the local police station for further questioning.

All right, mate, just take a seat in there behind the passenger seat.

While the IFED team was travelling to their next raid location, they got good news from the station.

He's just been put in a cell and he just came out with it.

He indicated that he knew what it was all about

and said that he didn't see any point in lying about any involvement.

I don't know what he's going to say in an interview. We obviously didn't question him any further.

But he asked if we were picking up any of the others that were involved. Those were his exact words.

So what exactly that means, I don't know.

It was the breakthrough the case needed. Although the raid had started well,

there were still two crucial arrests to make and the team had to stay focused.

When they arrived at the next address, they knew they were at the right place because parked outside

was a vehicle that was central to the case.

His car's there. That Mazda is pretty much what it's all about.

There's a bright green Mazda RX-7, which had been modified, out the garage.

It won numerous awards for the modifications to it and was on the front of several magazines.

The car belonged to Carter-Oram, the man involved in the second crash.

IFED believed this had been staged to fund expensive modification work on his Mazda.

Despite the presence of his car, the suspect believed to be at the second location wasn't Carter-Oram.

It was a man thought to have allowed his details to be used for one of the fraudulent insurance claims.

The team secured the exits and prepared to enter through the main door.

After they had identified themselves, the suspect co-operated by letting them in.

Firstly, I need to speak to you today regarding an allegation that's been made

where it's alleged that you're involved in a conspiracy to defraud insurance companies.

Hear me out, yeah?

In relation to that offence and allegation, I'm arresting you

on suspicion of conspiracy to defraud and we will interview you later this morning.

Although he wasn't a ringleader,

a search of the property showed he was involved in more than just suspected insurance fraud.

Things were seized, including the cultivation of cannabis which the local police dealt with.

How many plants have you got?

I'm arresting you on suspicion of cultivation of cannabis.

The team then moved on to the final and most important location,

a garage called Shell Shocked which was linked to all the suspects and all the cars.

When we delved deeper into the second claim in 2011,

it became apparent that Shell Shocked were clearly involved

in some form of fraudulent activity.

The whole fraud centred around this main garage Shell Shocked

and all the vehicles either were from there or passed through there,

but were borrowed and used in the contrived accidents,

then done up and returned to their rightful owners

or paid for by the insurance companies to be repaired.

Shell Shocked was owned by Carter-Oram, the owner of the Mazda, and Richard Cash.

Both of these men were directly involved in the induced collisions.

And it was here that the IFED team hoped to apprehend their final suspect, Carter-Oram.

Hello, mate. I'm Mark Foster from the City of London Police,

Insurance Fraud Enforcement Department. I need to speak to you about an allegation that's been made.

The allegation is that you have conspired with others to defraud an insurance company, namely RBS.

In relation to that, I'll have to arrest you.

You do not have to say anything, but it may harm your defence

if you do not mention something you later rely on in court. Anything you do say may be given in evidence.

We'll have to take you away now. Is your boss here or are you in charge? I'm in charge, yeah.

Their hunch that he'd be at work paid off and he was taken away for further questioning.

I'll stick you in the cage. I'll take you back to Torquay. Jump in.

The team had made three arrests and recovered a wealth of evidence,

but the fraud's complexity meant they still had people to track down.

The other suspects were arrested in Devon and one suspect attended Bishopsgate station voluntarily.

IFED's swift action ensured that the scam was shut down before the fraud could get any bigger.

By April 2013, IFED had collected enough evidence to bring the main players to justice.

Baker was sent down for six months and Richard Cash for 14.

Carter-Oram received a six-month jail term, suspended for 12 months.

Jennifer Shears, for her involvement in the first crash,

was handed a two-month prison sentence, suspended for 12 months.

The Direct Line Group has a zero tolerance to fraudulent insurance activity.

I don't think they expected to get caught so quickly,

but ultimately, most fraudsters will get caught.

In 2012, Olympic fever was everywhere.

For athletes chosen to represent their countries, this was the fulfilment of a long-held ambition.

This was especially true for one young Afghani man in West London.

Against all the odds, Daz Sediqy had made the Afghan boxing squad

and his inspirational story was starting to gain attention.

In an article in The Sun, he said, "I know I won't be one of the favourites to win a medal,

"but being a competitor at the 2012 Olympics seemed just an impossible dream."

He was right, but not in the way he intended.

The whole thing was a total fabrication.

Sediqy was actually a serial fraudster and fantasist.

Tom Gardiner from Aviva worked on the case.

It's not untypical for insurance fraudsters to have aliases.

I guess what's surprising in this case is that he sought to bring such attention to himself.

In truth, Daz Sediqy was a con man who lived in a fantasy world.

He had invented multiple personas to cheat money out of insurance companies,

but his lies were uncovered by Aviva's fraud detection team who found a number of suspicious claims.

We were able to identify matches between addresses and bank accounts

which originally alerted us to the fraud

and as we investigated that further, we were able to unravel the full scale of his fraud.

He had set up a web of fake identities.

Hamir Sediqy went by a number of aliases,

including Daz Sedique, Owen Hart and Kevin Heartbreak.

But Sediqy's fraud went much further than just inventing fake names.

DC John Herlihy from the City of London Police Insurance Fraud Enforcement Department

also worked on the case.

He tried to cover his tracks to some extent by changing his name regularly by deed poll.

In a two-year period, he had anything up to six to eight names.

In fact, I imagine that he has got one name that he keeps to himself,

but he's been known by so many names that perhaps only he will ever know what his real name is.

But he didn't stop at fake identities.

His financial arrangements revealed a web of lies too.

In total, we identified 23 bank accounts.

The bank accounts were used in the first place to obtain insurance

under bogus names and addresses

and then also later to receive payments from claims.

Sediqy was committing fraud on a massive scale.

So, in total, we were aware of 46 claims

which were presented for bogus injuries,

which, on a full liability basis,

would have had a value of about half a million pounds.

Sediqy's fraudulent claims primarily involved car accidents that had never happened

with multiple occupants who never existed.

He would claim for car repair costs and personal injury compensation.

Mr Sediqy was not terribly sophisticated.

He created a company that handled all these claims,

but, foolishly or otherwise,

claimed that that company was restoring the vehicles

and he would also make personal injury claims and rent vehicles,

so to people who have worked in insurance fraud for a number of years, these things stick out.

Once they collected all the evidence they could, the insurers handed over their findings to IFED

to take the investigation to the next stage.

There are some things they can't do that police officers have to do,

including tracing him through his bank accounts and names and aliases that he had given.

Once we traced all these activities and put them together

through mobile phone records and bank account details,

it was just a question of catching him in and making sure that he was caught red-handed.

By now, there was enough evidence to move in and arrest him.

On the day of the raid, when we went in, he was watching TV.

One of the things that was strangest to us was that amongst his various aliases,

he had said that he was an Olympic boxer.

He was watching the Olympics when we came in. It was the rowing.

So we asked him about that. "Aren't you supposed to be boxing for your country?"

And he said, "Oh, yes..." He'd injured himself.

He couldn't even be straight with us at that stage, standing there in his pants.

The IFED team was able to collect a wealth of evidence.

Surrounding him were the tools of his trade.

He had mobile phones with Post-it notes on them in all the different names,

so if that phone went off, he'd know who he was supposed to be.

With so many personas, it was hard for Sediqy to keep track of who had put in what claim.

The case proceeded to court and Sediqy was brought to justice.

He was charged with 11 counts of false representation under the Fraud Act

and also one count of holding a fake national ID card.

Perhaps realising that for once, he should tell the truth, Sediqy pleaded guilty.

He got 18 months

which, considering he had spent two years actually doing the crimes,

he had at least 18 months to regret it.

His elaborate fantasy existence had finally been brought to an end

and he had no-one to blame but himself, whoever that was.

I do wonder at the end of it, who actually knows the real Daz Sediqy?

Things you expect on a stag night -

to get a bit drunk, possibly a bit lairy and maybe round the evening off with a sing-song.

One thing you don't expect is whiplash, but that's just what happened on Stephen Paul's stag do.

The party had barely left Newcastle before festivities came to an abrupt halt,

thanks to their minibus hitting a car.

Aviva's Tom Gardiner was again on the case and investigated the claim.

Mr Paul took out a new policy with us to insure his minibus,

then contacted us several weeks later to report that he had been in a collision with another vehicle.

Elaine Ibbotson works for the insurers' solicitors.

It was suggested that there were a group of 14 men on their way

to a stag party in Edinburgh.

They were travelling in the minibus and it was alleged that shortly after starting their journey,

the minibus driver had left the main road north and had pulled off to visit a shop.

Shortly after leaving the main road on the approach to a roundabout,

it was alleged that the minibus collided with the rear of a car.

Six ambulances attended the scene. All of the people were treated at hospital.

The accident resulted in multiple injuries, primarily whiplash.

It wasn't long before the insurers heard from the would-be partygoers on the minibus.

In total, 15 claims were presented for whiplash injuries

which, on a full liability basis at the time,

would be potentially worth over £100,000.

Because it was such a huge sum of money, the team began to look more closely at the claim.

What they found called the whole stag party story into question.

In the first place, just the number and severity of the injuries proportionate to the accident.

In the second place, that the accident happened so soon after a new policy was taken out.

There's always an element of suspicion when every single occupant

of both vehicles involved in a collision claims to have sustained almost identical injuries.

It wasn't a huge impact, one where you'd expect every single person to have been injured.

The lawyers decided to talk to all the main players and immediately encountered inconsistencies.

The main claimant kept changing small details in his story.

His account really didn't ring true at all.

There were concerns from the police officers who attended the accident.

Quite clearly, they felt something wasn't right with the situation as they arrived at the scene.

The investigation continued and a vehicle assessor was sent to look at the damaged minibus.

One of the things that our engineers observed

when they inspected the minibus was that some of the damage appeared quite old.

Serious questions were being asked, not least why the men set off for a knees-up with no spare clothes.

It also emerged that despite travelling to Edinburgh for a stag weekend,

there was no luggage whatsoever in the minibus.

Piece by piece, the evidence was stacking up.

Their story was falling apart.

It seemed that the group had conspired to create a bogus accident,

so they could submit a massive insurance claim.

The investigation was widened to include those travelling in the car.

It became apparent that there were connections between the occupants of the two vehicles

that were identified through social networking websites.

The confirmation that they knew each other was telling,

but the final straw was a CCTV clip of the crash site

which showed that the accident had never occurred.

What we believe happened is that the two vehicles were damaged away from the scene,

then the accident was staged at some point and debris put on to the road

to create the impression that an accident had occurred.

The stag weekend in Edinburgh had been invented as a cover story for an audacious con trick,

but it had all fallen apart like a late-night kebab.

By now, there was enough evidence to take the culprits to court.

15 of the 16 people pleaded guilty

and received suspended sentences.

One person pleaded not guilty and he was tried by jury and later convicted.

The party was well and truly over for the stag do

and the only cause for celebration was that time had been called on a massive insurance scam.

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