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 every year.
0:00:11 > 0:00:16Deliberate crashes, bogus personal injury claims, even phantom pets.
0:00:18 > 0:00:21The fraudsters are risking more and more to make a quick killing.
0:00:23 > 0:00:27And every year, it's adding up to £50 to your insurance bill.
0:00:29 > 0:00:34Insurers are fighting back armed with covert surveillance systems...
0:00:36 > 0:00:38Subject out the vehicle.
0:00:38 > 0:00:40..sophisticated data analysis techniques
0:00:40 > 0:00:44and highly skilled dedicated police units...
0:00:44 > 0:00:47Police, don't move! Stay where you are!
0:00:47 > 0:00:50..they're catching the criminals red-handed.
0:00:50 > 0:00:53All those conmen, scammers and cheats on the fiddle,
0:00:53 > 0:00:57now they're caught in the act and claimed and shamed.
0:01:07 > 0:01:11A high-speed tangle leads to an opportunistic fraud attempt.
0:01:11 > 0:01:14There was no question - and the CCTV footage proved it.
0:01:14 > 0:01:17A specialist police force challenges their suspect.
0:01:17 > 0:01:21From what you say, we're not going to see anything in this car, right?
0:01:21 > 0:01:24And an insurer discovers where £1 million worth
0:01:24 > 0:01:25of fraudulent cash has gone.
0:01:25 > 0:01:27We were quite shocked.
0:01:31 > 0:01:35What's gone on here? Smashed up cars, police, dozens of onlookers.
0:01:35 > 0:01:38It's chaos.
0:01:38 > 0:01:41That's because the police car and the small hatchback have just been
0:01:41 > 0:01:46involved in a severe collision on this busy North London high street.
0:01:46 > 0:01:47The accident occurred
0:01:47 > 0:01:52on 21st February 2011 in Green Lanes in Haringey.
0:01:52 > 0:01:53A very busy road.
0:01:53 > 0:01:56The aftermath of the accident was quite chaotic.
0:01:56 > 0:01:59There were lots of people milling around.
0:01:59 > 0:02:00The fire engines are there,
0:02:00 > 0:02:03the ambulance is there treating some of the injured parties.
0:02:03 > 0:02:06What we can see is there are three vehicles that have been
0:02:06 > 0:02:08damaged in that impact.
0:02:09 > 0:02:14The third vehicle involved in the crash is the large black saloon car.
0:02:14 > 0:02:17It was sat in the parking bay at the time of the collision.
0:02:18 > 0:02:23The small hatchback ploughed into it after tangling with the police car.
0:02:23 > 0:02:25Amongst the carnage, the car's driver,
0:02:25 > 0:02:29in the white hooded top, can be seen inspecting his mangled motor.
0:02:31 > 0:02:34He then wanders over to talk to a police officer.
0:02:34 > 0:02:37The person that's parked the vehicle at the roadside
0:02:37 > 0:02:40clearly approaches the police in the footage
0:02:40 > 0:02:42and one can assume that they're asking about
0:02:42 > 0:02:47when their vehicle can actually be moved away from the crash.
0:02:47 > 0:02:49He's not just worried about the vehicle.
0:02:49 > 0:02:51He was in the stationary car at the time of the incident.
0:02:51 > 0:02:55He also had a passenger with him, seen wandering around the wreckage.
0:02:55 > 0:02:57The two men, Mehmet Ali Gul
0:02:57 > 0:03:00and Turan Korkmaz, suffered injuries as a result of the whack.
0:03:02 > 0:03:03Soon after the incident,
0:03:03 > 0:03:07Gul and Korkmaz both submitted personal injury claims against
0:03:07 > 0:03:11the insurance of the hatchback driver, who was supposedly at fault.
0:03:11 > 0:03:16We had claims for a whiplash injury and for treatment
0:03:16 > 0:03:21for physiotherapy that they'd had as a result of the accident.
0:03:21 > 0:03:25The two claims that we had for the alleged people in the vehicle
0:03:25 > 0:03:29amounted to £2,147 apiece.
0:03:31 > 0:03:37In total, the insurer was facing a £4,294 bill. The paperwork began.
0:03:39 > 0:03:41But this was no ordinary claim.
0:03:41 > 0:03:43It involved a police vehicle,
0:03:43 > 0:03:46and because of that, the claims process hit a problem.
0:03:46 > 0:03:49We needed to make some further enquiries
0:03:49 > 0:03:51as specific allegations had been made
0:03:51 > 0:03:55regarding the fact that the car hadn't been using its blues and twos.
0:03:57 > 0:04:01Blues and twos is industry speak for lights and siren.
0:04:01 > 0:04:04If the police car hadn't been using its blues and twos,
0:04:04 > 0:04:08arguments on liability for the crash could have taken place.
0:04:08 > 0:04:11The insurer had to check the allegation.
0:04:13 > 0:04:17They contacted Haringey Council, as they had a CCTV camera
0:04:17 > 0:04:22positioned near the crash site which captured the whole event.
0:04:22 > 0:04:24If the police car had been travelling at speed
0:04:24 > 0:04:27without its blues and twos on, the footage would tell them.
0:04:29 > 0:04:32When the insurer watched the footage, this is what it saw.
0:04:33 > 0:04:36A very busy road, lots of buses around,
0:04:36 > 0:04:38lots of people milling around.
0:04:38 > 0:04:42In the distance, you can see a police vehicle approaching.
0:04:42 > 0:04:46It was quite evident that the lights were on.
0:04:46 > 0:04:48The allegation that the police car didn't have
0:04:48 > 0:04:50its blues and twos on was wrong.
0:04:52 > 0:04:55The CCTV captures the whole event perfectly.
0:04:55 > 0:04:58The driver of the hatchback seemed to be at fault.
0:04:58 > 0:05:00Currently hidden behind the white van,
0:05:00 > 0:05:02the hatchback is about to cause mayhem.
0:05:06 > 0:05:09Unfortunately, there is a collision between our policy holder
0:05:09 > 0:05:11and the police vehicle.
0:05:11 > 0:05:13The subsequent impact that happened
0:05:13 > 0:05:15with the parked vehicle is significant.
0:05:19 > 0:05:21The insurer of the small hatchback would have to pay up
0:05:21 > 0:05:25for the whiplash injuries suffered by Gul and Korkmaz,
0:05:25 > 0:05:27who are about to get out of the stationary car.
0:05:30 > 0:05:33They're probably a bit shocked, they'll be out in a moment.
0:05:36 > 0:05:38Any second now.
0:05:40 > 0:05:42No, they won't and that's because...
0:05:42 > 0:05:46When you study the CCTV footage, it's evident that the two claimants
0:05:46 > 0:05:51are nowhere near the vehicle at the time that the incident happens.
0:05:51 > 0:05:56Turan Korkmaz and Mehmet Ali Gul first arrive on scene
0:05:56 > 0:05:58two minutes after the crash.
0:05:58 > 0:06:00There's the driver jogging up the road towards
0:06:00 > 0:06:05his bashed-up motor, followed by his pretend passenger.
0:06:05 > 0:06:08Both whiplash claims had been opportunistic attempts to
0:06:08 > 0:06:11make money out of a life-threatening event.
0:06:11 > 0:06:15You see them approaching from quite a considerable distance away.
0:06:15 > 0:06:18There is no way that those two men could have
0:06:18 > 0:06:22been in the car at the time of the crash. There was no question.
0:06:22 > 0:06:23The CCTV footage proved it.
0:06:23 > 0:06:25Korkmaz and Gul weren't
0:06:25 > 0:06:28going to get away with a free shot at the insurer.
0:06:28 > 0:06:32When we repudiated the claims, we decided it was time to report it
0:06:32 > 0:06:35to the police so that they could consider a prosecution.
0:06:35 > 0:06:38The footage was conclusive evidence.
0:06:38 > 0:06:41Both Turan Korkmaz and Mehmet Ali Gul received a three-month
0:06:41 > 0:06:45suspended sentence and 120 hours community service.
0:06:45 > 0:06:48I think it would be quite surprising to any fraudster
0:06:48 > 0:06:49as to the technology
0:06:49 > 0:06:52and the pooling of resources that is now happening
0:06:52 > 0:06:54within the insurance industry
0:06:54 > 0:06:58to make sure these fraudulent claims come to an end.
0:06:58 > 0:07:02Fraudulent claims like this are costing the honest policy-holder
0:07:02 > 0:07:05around £50 on their premium every single year.
0:07:05 > 0:07:09The industry, insurers, the police, are all working together to try
0:07:09 > 0:07:12and make sure these people are prosecuted where necessary
0:07:12 > 0:07:14and brought to justice.
0:07:23 > 0:07:26A fraudulent couple's jet-set lifestyle gives the game away.
0:07:26 > 0:07:29The couple spend an awful lot of time going on holiday or
0:07:29 > 0:07:31going to the airport.
0:07:31 > 0:07:34And the owner of a pink limo won't back down on price.
0:07:34 > 0:07:37The vehicle was quite a tatty vehicle, actually.
0:07:41 > 0:07:46CCTV has proven indispensible in the fight against insurance fraud.
0:07:46 > 0:07:48But there are times
0:07:48 > 0:07:50when more unlikely methods uncover the scammers.
0:07:53 > 0:07:58This is Miss Jaksone, a single mother, who, back in 2009,
0:07:58 > 0:08:01was doing her best to make ends meet by holding down a full-time job
0:08:01 > 0:08:04whilst also looking after two kids.
0:08:07 > 0:08:11Britain has two million single-parent families.
0:08:11 > 0:08:13Bringing up a child on your own can be tough,
0:08:13 > 0:08:15not least of all financially.
0:08:16 > 0:08:19Luckily there's help at hand in the form of tax credits.
0:08:21 > 0:08:23Tax credits, pension credits
0:08:23 > 0:08:25and benefits in general are designed for those
0:08:25 > 0:08:29who are really in need of financial help to top up
0:08:29 > 0:08:33the earnings of someone who is on a low income or with childcare costs.
0:08:34 > 0:08:36Miss Jaksone, despite her efforts,
0:08:36 > 0:08:39relied upon the help of the tax credit system.
0:08:39 > 0:08:43Miss Jaksone was claiming to be a single mother on a very low
0:08:43 > 0:08:46income of around £6,000 a year.
0:08:46 > 0:08:50She was claiming that she was working full-time
0:08:50 > 0:08:52and, in addition to that, she had high childcare costs.
0:08:52 > 0:08:56Money was tight for the full-time working mum.
0:08:56 > 0:09:00But the tax credit system would help keep their heads above water.
0:09:00 > 0:09:03In order to make sure that tax credits are reaching
0:09:03 > 0:09:05the people who need them most,
0:09:05 > 0:09:09HMRC do regular random checks on tax credit recipients.
0:09:11 > 0:09:16In 2009, Miss Jaksone's name came up for one such check.
0:09:16 > 0:09:19Her tax credits claim was selected for a routine
0:09:19 > 0:09:22examination by a tax credits inspector.
0:09:24 > 0:09:27During this routine examination, the inspectors made some
0:09:27 > 0:09:31surprising discoveries about the financially stretched single mum.
0:09:34 > 0:09:37It turned out she wasn't single.
0:09:37 > 0:09:41She was still living with the father of her children - Gagik Manucharyan.
0:09:43 > 0:09:47The HMRC inspectors felt there was more to be discovered.
0:09:47 > 0:09:51We put the couple under covert surveillance for around three months.
0:09:51 > 0:09:54This established that the couple spent an awful lot of time
0:09:54 > 0:09:57shopping and going on holiday, going to the airport.
0:09:57 > 0:10:01Not the usual movements of a hard up parent receiving tax credits.
0:10:01 > 0:10:03What was going on?
0:10:04 > 0:10:07HMRC were determined to get to the bottom of it.
0:10:09 > 0:10:13There came a time where we decided we had to resort to traditional
0:10:13 > 0:10:16techniques and we obtained a warrant.
0:10:16 > 0:10:22We went through the front door early one morning in October 2009 and arrested the suspects.
0:10:22 > 0:10:27So what did HMRC discover from the raid at Jaksone and Manucharyan's address?
0:10:27 > 0:10:31The couple were living quite an extravagant lifestyle.
0:10:33 > 0:10:37The couple lived in this...
0:10:37 > 0:10:39They drove a couple of these...
0:10:42 > 0:10:45And they did indeed enjoy the odd holiday...
0:10:48 > 0:10:52We discovered that Miss Jaksone had a lifestyle well beyond what
0:10:52 > 0:10:54her declared means were.
0:10:54 > 0:10:59She had recently purchased a property for around £365,000,
0:10:59 > 0:11:02with £150,000 going down as a deposit on it.
0:11:02 > 0:11:05In addition to that, she had recently taken out a loan
0:11:05 > 0:11:07on a £56,000 Mercedes motorcar.
0:11:07 > 0:11:11They spent a lot of time on holiday at locations across the world.
0:11:11 > 0:11:14The couple had been enjoying the kind of luxuries
0:11:14 > 0:11:17that are out of reach of most tax credit recipients.
0:11:19 > 0:11:23Over a three-year period, they had spent a lot of the taxpayers' money.
0:11:23 > 0:11:26Between 2006 and 2009,
0:11:26 > 0:11:31Jaksone was able to obtain £56,000 in tax credits.
0:11:31 > 0:11:36Additionally, via her Latvian mother, she set up a fraudulent claim
0:11:36 > 0:11:41to generate £27,000 in pension credits and winter fuel payments.
0:11:41 > 0:11:43That makes a total of £83,000
0:11:43 > 0:11:48in benefits fraudulently obtained from HMRC.
0:11:48 > 0:11:49But the figures did not add up.
0:11:49 > 0:11:53The house alone was worth four times as much as that.
0:11:55 > 0:11:58Where were the fraudsters getting the rest of the money from?
0:11:58 > 0:12:02Bank statements seized during raid held a clue.
0:12:02 > 0:12:06The couple were receiving significant amounts of cash deposits
0:12:06 > 0:12:09into their account from locations all over the UK.
0:12:09 > 0:12:13It was discovered that there were deposits linked to payments
0:12:13 > 0:12:14to a large insurer.
0:12:16 > 0:12:18Looking for specialist help,
0:12:18 > 0:12:22HMRC invited the insurer to aid in the investigation.
0:12:22 > 0:12:25When HMRC found this information they knew that
0:12:25 > 0:12:30they were on to some other type of fraud that this couple were
0:12:30 > 0:12:33involved in, but I don't think they really understood the full
0:12:33 > 0:12:37extent of the criminal activity that Jaksone and Manucharyan had
0:12:37 > 0:12:40been undertaking in the insurance industry.
0:12:40 > 0:12:42Jaksone and Manucharyan had been
0:12:42 > 0:12:44running an illegal insurance racket.
0:12:44 > 0:12:46A criminal practice known as ghost broking.
0:12:48 > 0:12:52Ghost broking is a term used for an illicit insurance broker who
0:12:52 > 0:12:55falsifies details to take out bogus insurance policies
0:12:55 > 0:12:57on behalf of drivers.
0:12:57 > 0:13:01If involved in an accident, their innocent customers could find
0:13:01 > 0:13:04they don't have valid insurance.
0:13:04 > 0:13:08Jaksone and Manucharyan were ghost broking on a massive scale.
0:13:08 > 0:13:12When we started to uncover the size of the fraud that had taken place
0:13:12 > 0:13:13we were quite shocked.
0:13:15 > 0:13:18In total, the couple had sold over 1,500 policies,
0:13:18 > 0:13:20leaving in their wake
0:13:20 > 0:13:23hundreds of customers without valid insurance.
0:13:23 > 0:13:26We really realised what we were dealing with
0:13:26 > 0:13:29when we had to print out 30,000 pages of documentation to cover
0:13:29 > 0:13:32the extent of the fraud that Jaksone and Manucharyan had been
0:13:32 > 0:13:36committing just with the Direct Line group let alone any of the
0:13:36 > 0:13:41other insurers that they had also been placing illegal policies with.
0:13:41 > 0:13:44And also the point where we had to set up special call lines to
0:13:44 > 0:13:47deal with the impact that they'd had on innocent victims.
0:13:49 > 0:13:52After three years of fleecing innocent customers, the couple
0:13:52 > 0:13:56had made almost £1 million from their illegal insurance business.
0:13:56 > 0:14:00Add to that the £82,000 of fraudulently obtained benefits
0:14:00 > 0:14:03and it is easy to see how they lived the high life.
0:14:03 > 0:14:07That was feeding a criminal lifestyle which left
0:14:07 > 0:14:12Manucharyan and Jaksone living a life of comfort and privilege
0:14:12 > 0:14:14while their victims were
0:14:14 > 0:14:18driving around in vehicles which were uninsured.
0:14:18 > 0:14:21Having committed both benefit and insurance fraud, Jaksone
0:14:21 > 0:14:25and Manucharyan were facing a double whammy in court.
0:14:25 > 0:14:28Manucharyan received five years and two months imprisonment,
0:14:28 > 0:14:32that was broken down into three years for insurance fraud
0:14:32 > 0:14:34and two years two months for tax fraud.
0:14:34 > 0:14:36Jaksone received five years in prison
0:14:36 > 0:14:41and that was broken down into two years for insurance fraud and two
0:14:41 > 0:14:45years and two months for tax fraud and 18 months for benefit fraud.
0:14:45 > 0:14:48We have got powers available to us
0:14:48 > 0:14:52under the Proceeds of Crime Act to recover any assets that
0:14:52 > 0:14:56criminals have obtained from involvement in criminal activity.
0:14:56 > 0:14:58In this particular case,
0:14:58 > 0:15:01we'll look to recover what we can from these defendants.
0:15:01 > 0:15:05As a result of the actions of people like Jaksone and Manucharyan
0:15:05 > 0:15:07we're all paying more money,
0:15:07 > 0:15:09at a time when really we can ill afford to pay more
0:15:09 > 0:15:11money for our insurance premiums.
0:15:11 > 0:15:14For the most part, I would advise people,
0:15:14 > 0:15:17if the deal is too good to be true, it probably is.
0:15:21 > 0:15:23Insurance fraud is on the rise.
0:15:23 > 0:15:28And if you have insurance of any kind, you are footing the bill.
0:15:28 > 0:15:30But the fraudsters have an ominous enemy.
0:15:31 > 0:15:35IFED is a 35-strong unit that works tirelessly to hunt down
0:15:35 > 0:15:37and prosecute insurance fraudsters
0:15:37 > 0:15:41wherever they may be throughout England and Wales.
0:15:41 > 0:15:43Through a combination of investigation,
0:15:43 > 0:15:49industry connections and surprise, they have made over 300 arrests
0:15:49 > 0:15:53and stopped millions of pounds from going to the criminals.
0:15:53 > 0:15:56Money which ultimately goes back in our pockets.
0:15:56 > 0:16:00It is highly likely now that if you commit any insurance fraud,
0:16:00 > 0:16:01you will get caught.
0:16:01 > 0:16:04Police! Don't move, stay where you are.
0:16:04 > 0:16:07Today, IFED is raiding two addresses linked to another
0:16:07 > 0:16:09suspected ghost broker.
0:16:10 > 0:16:12The two addresses are just a few miles apart.
0:16:14 > 0:16:18DS Mullish is with the team going to the main raid location.
0:16:18 > 0:16:19The plan today is we're going
0:16:19 > 0:16:24to arrest and search the premises of the suspect in relation to what
0:16:24 > 0:16:28we suspect he's been involved in, what we call ghost broking.
0:16:28 > 0:16:33Key evidence would be computers and any device capable of storing
0:16:33 > 0:16:38data together with documentation relating to insurance policies.
0:16:38 > 0:16:43IFED rendezvous with the local officer supporting today's raid.
0:16:47 > 0:16:52It's 7:49am. The six-strong team enters the suspect's address.
0:16:54 > 0:16:56KNOCKS AT DOOR
0:16:58 > 0:17:00Hi, good morning. City of London police.
0:17:00 > 0:17:03Within seconds, the door is opened.
0:17:03 > 0:17:06IFED recognises its suspect.
0:17:06 > 0:17:09Anyone else on the premises? Yes, my wife.
0:17:09 > 0:17:12Right, we'll explain why we're here.
0:17:24 > 0:17:26Yes, sure.
0:17:30 > 0:17:33DS Mullish, concerned that the suspect might tip off the other raid
0:17:33 > 0:17:37location, decides to round up the suspect's phones.
0:17:37 > 0:17:42Where's your mobile phone? Turn those off for me.
0:17:44 > 0:17:47Is there a password, a number for this phone?
0:17:47 > 0:17:51And for your BlackBerry, is there a password for that? Yes.
0:17:51 > 0:17:57All four of the suspect's mobile phones are now switched off.
0:17:57 > 0:18:00For the time being, his lines of communication are cut.
0:18:00 > 0:18:03Leave that there, I'm going to seize those.
0:18:05 > 0:18:07At the second raid location, DC Cooley
0:18:07 > 0:18:13and the team are falling into position outside the property.
0:18:13 > 0:18:16The IFED team has assistance from two local officers.
0:18:17 > 0:18:19Good morning. Morning.
0:18:19 > 0:18:22Hello, I'm Inspector Malone from the City of London police.
0:18:22 > 0:18:25Certainly. This is my ID. Can I come in and explain?
0:18:25 > 0:18:27Yes, please. Please come in.
0:18:51 > 0:18:53DC Cooley discovers that the occupant of the property is
0:18:53 > 0:18:58the suspect's dad. And that the suspect used to live here.
0:18:58 > 0:19:00So does he still have a bedroom here?
0:19:00 > 0:19:03I think we'll be particularly interested in looking at that.
0:19:03 > 0:19:05Yes, please. Thanks very much.
0:19:05 > 0:19:07Confident that the raid location is safe,
0:19:07 > 0:19:09IFED dismisses the local officers.
0:19:09 > 0:19:11Good luck, gents. See you.
0:19:11 > 0:19:13DC Cooley and DC Malone head upstairs
0:19:13 > 0:19:15to begin a search for potential evidence
0:19:15 > 0:19:17in the suspect's old bedroom.
0:19:20 > 0:19:23They start with the big stuff - computers.
0:19:23 > 0:19:25You were saying that this computer here
0:19:25 > 0:19:27had been used by BLEEP at some point.
0:19:27 > 0:19:29Yeah, he used it before.
0:19:29 > 0:19:33I think we are going to have to take that hard drive. Sure, why not.
0:19:33 > 0:19:34The computer is seized
0:19:34 > 0:19:40and its contents will be analysed by IFED's specialist IT investigators.
0:19:40 > 0:19:43The first piece of potential evidence is in the bag.
0:19:45 > 0:19:48DS Mullish warns his suspect against doing a runner.
0:19:51 > 0:19:52Yeah, 100%.
0:19:52 > 0:19:53He is very fast.
0:19:59 > 0:20:00What a stunner!
0:20:00 > 0:20:0516 seats, fibre-optic mood lighting, flatscreen TVs,
0:20:05 > 0:20:08a glitter ball, and even a skylight to pop up from
0:20:08 > 0:20:12when you want to whoop at boring people not invited to your party.
0:20:12 > 0:20:15It is not the kind of vehicle that you nip to the shops in.
0:20:15 > 0:20:18But you could run a business hiring it out to revellers.
0:20:19 > 0:20:23That's what one man was doing with his 16-seater Lincoln Navigator.
0:20:23 > 0:20:24Pictured here.
0:20:24 > 0:20:26The claimant had purchased the vehicle
0:20:26 > 0:20:31for job purposes and was using it for private hire and parties
0:20:31 > 0:20:33and all the usual social activities
0:20:33 > 0:20:36that take place within the limousine.
0:20:36 > 0:20:39Cruising around in an eye-catching motor seems like a good way
0:20:39 > 0:20:40to make a living.
0:20:40 > 0:20:43So, you can imagine the owner's disappointment when his pink
0:20:43 > 0:20:47cash cow was taken off the road after being involved in a collision.
0:20:47 > 0:20:50This was a straightforward road traffic accident
0:20:50 > 0:20:56whereby our insured had come out of a minor road,
0:20:56 > 0:21:02exited onto a roundabout and straight into a collision with the limousine.
0:21:02 > 0:21:05Straightforward or not, the damage was severe.
0:21:05 > 0:21:10The damage to the limousine was allegedly quite extensive to
0:21:10 > 0:21:14the off side of the vehicle and also to the near side, its front bonnet.
0:21:14 > 0:21:18The claimant's solicitors had organised for an engineer to inspect
0:21:18 > 0:21:24the vehicle and the engineer's report indicated a value of £21,000.
0:21:24 > 0:21:29The extent of the damage rendered the vehicle a write-off, a total loss.
0:21:30 > 0:21:33The insurer set about processing the claim for the limo owner.
0:21:33 > 0:21:35The paperwork was well under way
0:21:35 > 0:21:39when suddenly the insurer halted the claim.
0:21:39 > 0:21:41An inconsistency had been spotted.
0:21:41 > 0:21:45The owner alleged that he needed a replacement vehicle for work purposes
0:21:45 > 0:21:48because he was without his limousine but very oddly,
0:21:48 > 0:21:52rather than replacing his limousine with a like-for-like vehicle,
0:21:52 > 0:21:56which you would expect he would need for the prestige jobs
0:21:56 > 0:22:01that he indicated that he needed to do, he hired a Mercedes C Class.
0:22:03 > 0:22:06Now this is maths I can handle.
0:22:06 > 0:22:09The damaged pink limo had 16 passenger seats.
0:22:09 > 0:22:12A Mercedes C Class - no more than four.
0:22:12 > 0:22:14If the owner of the party vehicle business was using
0:22:14 > 0:22:15the Merc for work,
0:22:15 > 0:22:19he was regularly leaving 12 party animals stranded on the kerbside.
0:22:22 > 0:22:25With suspicions aroused, the insurer went looking for hard facts
0:22:25 > 0:22:27and figures.
0:22:27 > 0:22:32We decided to undertake a further examination of the vehicle.
0:22:32 > 0:22:34The findings were surprising.
0:22:34 > 0:22:36The vehicle was quite a tatty vehicle,
0:22:36 > 0:22:39for the interior purposes
0:22:39 > 0:22:44and certainly not one you would expect to be out on prestige jobs
0:22:44 > 0:22:50for parties and obviously those ladies who like pink limousines.
0:22:50 > 0:22:54The assessor had come back to say that in his opinion
0:22:54 > 0:23:01the vehicle was only worth £4,800 as opposed to the £21,000.
0:23:01 > 0:23:03The insurer's valuation of the vehicle
0:23:03 > 0:23:06was a fraction of the amount being claimed.
0:23:06 > 0:23:10However, the limo owner wouldn't back down from his £21,000
0:23:10 > 0:23:14valuation of the vehicle. But his resistance was about to be broken.
0:23:14 > 0:23:17The insurer discovered the limo owner had taken out
0:23:17 > 0:23:20his insurance policy just a month before the crash.
0:23:20 > 0:23:23When the claimant had incepted his policy of insurance
0:23:23 > 0:23:27for the limousine just one month prior to this incident,
0:23:27 > 0:23:34he had indicated to insurers that his value of the limousine was £10,000.
0:23:34 > 0:23:37So the limo owner himself had declared that the car was
0:23:37 > 0:23:40worth no more than £10,000.
0:23:40 > 0:23:43Less than half of the £21,000 he was trying to claim for it.
0:23:43 > 0:23:44The game was up.
0:23:44 > 0:23:49It is incredibly important that we stop exaggerated claims.
0:23:49 > 0:23:52Opportunistic claims make up the bulk of fraudulent claims
0:23:52 > 0:23:55and it is costing the innocent motorist money.
0:23:56 > 0:23:59The pink limo owner ended up settling
0:23:59 > 0:24:03for a tiny fraction of the £21,000 he had been chasing.
0:24:03 > 0:24:06Saving every honest motorist from unnecessarily paying out
0:24:06 > 0:24:09more for their vehicle insurance.
0:24:09 > 0:24:12The Association of British Insurers indicated that last year alone
0:24:12 > 0:24:18£19 million worth of fraud was uncovered from motor accidents.
0:24:18 > 0:24:22It is a huge problem in this economic climate to have insurance premiums
0:24:22 > 0:24:25increase because of this type of exaggeration.
0:24:32 > 0:24:36Today IFED is executing a double raid.
0:24:36 > 0:24:39It is searching two addresses linked to a man suspected of selling
0:24:39 > 0:24:41false insurance policies.
0:24:41 > 0:24:43DS Mullish... Turn those off for me.
0:24:43 > 0:24:45..having cut the suspect's lines of communication...
0:24:45 > 0:24:48Is there a password for this phone?
0:24:48 > 0:24:50..is ready to begin a thorough research for potential
0:24:50 > 0:24:53evidence of fraudulent activity.
0:24:53 > 0:24:55Is there any documentation that you could point us towards
0:24:55 > 0:24:57in relation to insurance policies?
0:24:57 > 0:25:01I'll try to dig some stuff up.
0:25:01 > 0:25:05The suspect responds to DS Mullish's request by handing over a clear
0:25:05 > 0:25:08plastic box full to the brim with documents.
0:25:12 > 0:25:15Almost immediately his attention is drawn to a bright-red
0:25:15 > 0:25:17vehicle registration document.
0:25:17 > 0:25:21This document I am about to seize is of particular interest because it
0:25:21 > 0:25:28relates to the suspected fraudulent name of a company or business.
0:25:28 > 0:25:32The name on this document is the exact name of what
0:25:32 > 0:25:35we believe the suspect has been operating under.
0:25:35 > 0:25:36Potentially a key bit of evidence, yes.
0:25:38 > 0:25:39Hmm.
0:25:41 > 0:25:44A few miles away, DC Cooley is studying documents found
0:25:44 > 0:25:47in the suspect's old bedroom at his father's house.
0:25:51 > 0:25:53He has a lot to get through.
0:25:54 > 0:25:56DC Cooley thinks he is on to something.
0:25:56 > 0:25:57Within the mass of paperwork
0:25:57 > 0:26:00he finds what could be damning evidence of fraud.
0:26:00 > 0:26:02Now, this is interesting.
0:26:02 > 0:26:06It is a letter written by the suspect to an insurance company
0:26:06 > 0:26:09clarifying the position on somebody else's insurance policy.
0:26:11 > 0:26:16The suspect is not registered with the Financial Services Authority.
0:26:16 > 0:26:19This means that it is illegal for him to act as a broker.
0:26:19 > 0:26:22He even cheekily claims that the police stopped him
0:26:22 > 0:26:25on the street and then verified that the insurance was correct.
0:26:25 > 0:26:29DC Cooley and DC Malone have finished their search.
0:26:29 > 0:26:31Seize it all.
0:26:32 > 0:26:34The documents and computers seized
0:26:34 > 0:26:38will be added to the exhibits found at the suspect's house.
0:26:42 > 0:26:46Back at the suspect's property, the search is about to move outside.
0:26:57 > 0:26:59The team decide to take a look for themselves.
0:26:59 > 0:27:03Before heading outside, DS Mullish has a warning for the suspect.
0:27:09 > 0:27:10Yeah, 100%.
0:27:10 > 0:27:13He is very fast. I am even faster.
0:27:13 > 0:27:16This is it, is it? If you don't mind just standing.
0:27:16 > 0:27:19Nothing is found in the black vehicle.
0:27:19 > 0:27:20Before searching the second car,
0:27:20 > 0:27:24DS Mullish double-checks with the suspect about its contents.
0:27:24 > 0:27:27From what you say, we're not going to see anything in this car. Yeah.
0:27:27 > 0:27:29If you want to stay there. Sure.
0:27:30 > 0:27:34DS Mullish doesn't have to go any further than the glove compartment
0:27:34 > 0:27:36before finding potential evidence of fraud.
0:27:36 > 0:27:38Steve, did you bring any bags?
0:27:38 > 0:27:42The document seized from the suspect's vehicle is a copy
0:27:42 > 0:27:47of an insurance document in another person's name, other than the suspect.
0:27:47 > 0:27:49The search is complete.
0:27:49 > 0:27:53IFED takes the suspect away for further questioning.
0:27:53 > 0:27:54Put your seat belt on for us.
0:27:56 > 0:27:57We have had a great result today.
0:27:57 > 0:28:00We have found the suspect at the address.
0:28:00 > 0:28:04We have found great evidence and we have also...
0:28:04 > 0:28:08Where we simultaneously executed a warrant at another address,
0:28:08 > 0:28:11we have also found relevant documentation there.
0:28:11 > 0:28:14Very good evidence to support our investigation.
0:28:29 > 0:28:32Subtitles by Red Bee Media Ltd