0:00:02 > 0:00:05Insurance fraud in the UK has hit epidemic levels.
0:00:05 > 0:00:09It's costing us over £2 billion every year.
0:00:09 > 0:00:13That's almost £6 million every day.
0:00:13 > 0:00:14Deliberate crashes,
0:00:14 > 0:00:17bogus personal injuries,
0:00:17 > 0:00:19even phantom pets -
0:00:19 > 0:00:22the fraudsters are risking more and more to make a quick killing.
0:00:22 > 0:00:27Every year, it's adding over £50 to your insurance bill.
0:00:27 > 0:00:33But insurers are fighting back, exposing 15 fake claims every hour.
0:00:33 > 0:00:35Armed with covert surveillance systems...
0:00:35 > 0:00:37Subject out of the vehicle.
0:00:37 > 0:00:41..sophisticated data analysis techniques
0:00:41 > 0:00:44and a highly skilled, dedicated police unit...
0:00:44 > 0:00:47Police, don't move, stay where you are!
0:00:47 > 0:00:49..they're catching the criminals red-handed.
0:00:49 > 0:00:50Just don't lie to us.
0:00:50 > 0:00:53All those conmen, scammers and cheats on the fiddle
0:00:53 > 0:00:58are now caught in the act and claimed and shamed.
0:01:06 > 0:01:09Coming up, secret filming saves an insurance company
0:01:09 > 0:01:12from a fraudulent claim worth almost £2 million.
0:01:12 > 0:01:16Instead of somebody who could not use their right arm,
0:01:16 > 0:01:19the footage shows somebody going about everyday life
0:01:19 > 0:01:21with absolutely no trouble.
0:01:21 > 0:01:25A nasty collision between a pedestrian and a bus, but who was to blame?
0:01:25 > 0:01:28If the driver's made eye contact and he's carried on,
0:01:28 > 0:01:31is he saying that he's deliberately run him over?
0:01:31 > 0:01:35And IFED execute 20 warrants, in their biggest operation this year.
0:01:36 > 0:01:38You know him, don't you?
0:01:38 > 0:01:40I can tell by your answer you know him.
0:01:45 > 0:01:48With many jobs, there's a risk of personal injury.
0:01:48 > 0:01:53Although with some, the element of danger is far greater than others.
0:01:53 > 0:01:56Particularly, professions which rely on manual labour,
0:01:56 > 0:01:58such as building or factory work.
0:01:58 > 0:02:02For people who do these sort of jobs, a personal injury claim
0:02:02 > 0:02:05can be the saving grace in the event of an accident.
0:02:05 > 0:02:09But in 2010, Royal & Sun Alliance dealt with a claim submitted
0:02:09 > 0:02:13by a young man which showed that things aren't always as they appear.
0:02:13 > 0:02:18Danny Wykes is a young man who was working as a floor layer,
0:02:18 > 0:02:22and with a colleague, he was unloading a mixer from a trailer.
0:02:22 > 0:02:24The mixer was rolling down the trailer
0:02:24 > 0:02:28but his colleague lost control of it, and so it free-fell, effectively,
0:02:28 > 0:02:30and struck him on the right hand.
0:02:30 > 0:02:33So he did sustain an injury to his right hand,
0:02:33 > 0:02:35but it was relatively minor.
0:02:35 > 0:02:37It was a soft tissue injury.
0:02:37 > 0:02:41It was the type of injury you may expect to heal within, say, a year.
0:02:41 > 0:02:46But this was a problem which didn't have any signs of going away.
0:02:46 > 0:02:50He went on to develop a condition known as complex regional pain syndrome.
0:02:50 > 0:02:53That's where somebody has a relatively minor injury.
0:02:53 > 0:02:55The injury appears to have healed,
0:02:55 > 0:02:58there's no reason why they would continue to experience pain
0:02:58 > 0:03:01but they carry on having a lot of pain.
0:03:02 > 0:03:06Complex regional pain syndrome is a serious condition which can be
0:03:06 > 0:03:10severely debilitating, and Danny Wykes' case was no different.
0:03:10 > 0:03:14He claimed that he couldn't use his right hand at all.
0:03:14 > 0:03:15It hurt if somebody just touched it.
0:03:15 > 0:03:19If somebody brushed past it, he would be in agony for days.
0:03:19 > 0:03:22He couldn't raise his hand to smoke a cigarette.
0:03:22 > 0:03:24He couldn't carry anything.
0:03:24 > 0:03:26It caused difficulty with sexual relationships
0:03:26 > 0:03:29and he had to adopt a certain position.
0:03:29 > 0:03:32He had difficulty driving his vehicle, he couldn't work.
0:03:32 > 0:03:36He did say that he felt like, at times, it would be better
0:03:36 > 0:03:39to amputate it because it was so useless.
0:03:39 > 0:03:41He was effectively like somebody with one arm.
0:03:43 > 0:03:48It was quite a claim, and one which raised concerns at Royal & Sun Alliance's headquarters.
0:03:48 > 0:03:52The claim was made to us, ultimately as his insurers,
0:03:52 > 0:03:56and with his company and ourselves we were very sympathetic
0:03:56 > 0:04:00and made some payments to him, and in fact were working
0:04:00 > 0:04:04with him on rehabilitation to get him back to work.
0:04:04 > 0:04:08The lengths that Royal & Sun Alliance had gone to in an effort to
0:04:08 > 0:04:11make life easier for Wykes weren't to be sniffed at.
0:04:11 > 0:04:13They paid for adaptations to his car,
0:04:13 > 0:04:16they provided him with voice-activated software
0:04:16 > 0:04:20for his computer because he allegedly couldn't type using his right hand.
0:04:20 > 0:04:23Over the course of the first 18 months, they would've spent
0:04:23 > 0:04:27tens of thousands of pounds trying to help him to reach a full recovery.
0:04:27 > 0:04:29By July 2011 he claims that in fact
0:04:29 > 0:04:31he was getting worse rather than better,
0:04:31 > 0:04:34and that the pain was now spreading up his right arm into his shoulder,
0:04:34 > 0:04:37and he was also experiencing similar pain in his left arm.
0:04:39 > 0:04:43As far-fetched as this injury from a single knock to the back of the hand sounds,
0:04:43 > 0:04:46specialist opinion confirmed that this could be a legitimate claim.
0:04:48 > 0:04:52Medical experts, based primarily on his reported symptoms,
0:04:52 > 0:04:56came to the view that he was suffering from his condition
0:04:56 > 0:04:59and so they backed his claim.
0:04:59 > 0:05:05He ultimately made a claim for £1.9 million of compensation
0:05:05 > 0:05:09and this was based on his incapacity,
0:05:09 > 0:05:12his inability to work and his future earnings,
0:05:12 > 0:05:17plus a considerable amount of care that he would need in his life going forward.
0:05:17 > 0:05:20At almost £2 million,
0:05:20 > 0:05:23the claim was effectively for a lifetime of compensation.
0:05:23 > 0:05:26But, before they handed over any money,
0:05:26 > 0:05:28Royal & Sun Alliance began having doubts.
0:05:28 > 0:05:32There came a point when we began to get suspicious
0:05:32 > 0:05:35about the level of his incapacity.
0:05:35 > 0:05:41We began to investigate the case and deployed some surveillance.
0:05:43 > 0:05:46The footage captured by the surveillance unit painted
0:05:46 > 0:05:50a very different picture to the one that Danny Wykes had portrayed.
0:05:50 > 0:05:53Instead of somebody who could not use their right arm,
0:05:53 > 0:05:57and had trouble with their left arm, the footage shows somebody
0:05:57 > 0:06:00going about everyday life with absolutely no trouble.
0:06:00 > 0:06:03It shows him driving his car, using both hands at the steering wheel,
0:06:03 > 0:06:05going to the supermarket with his girlfriend,
0:06:05 > 0:06:08selecting produce from the shelves, loading up the trolley.
0:06:08 > 0:06:11At one point he seemed to put his weight through his arms
0:06:11 > 0:06:13and ride on the trolley.
0:06:13 > 0:06:15He carries the heavy shopping bags,
0:06:15 > 0:06:18he unloads bags from the car.
0:06:18 > 0:06:21He's seen throwing a ball to a dog,
0:06:21 > 0:06:23wheeling a wheelbarrow
0:06:23 > 0:06:26and, in particular, in November 2011, which is the time that
0:06:26 > 0:06:30he was signing court documents saying that he was extremely disabled,
0:06:30 > 0:06:34the footage shows him at what appears to be a place of work
0:06:34 > 0:06:36carrying a folded up table in one hand
0:06:36 > 0:06:39and a double glazing unit in another hand.
0:06:39 > 0:06:42To say that the footage didn't help Danny Wykes' claim
0:06:42 > 0:06:44ranks as the understatement of the year.
0:06:44 > 0:06:47We showed the footage to the medical experts,
0:06:47 > 0:06:51who then, as a result of that, changed their opinion
0:06:51 > 0:06:55and formed the view that Mr Wykes was either
0:06:55 > 0:06:59grossly exaggerating the level of pain, or indeed making it up.
0:07:00 > 0:07:03With Wykes' claim seemingly in tatters,
0:07:03 > 0:07:07Royal & Sun Alliance sent a copy of the video evidence to his legal team.
0:07:07 > 0:07:10When his solicitors received the surveillance footage,
0:07:10 > 0:07:12they ceased to act for him.
0:07:12 > 0:07:15They weren't prepared to continue being his solicitors in light
0:07:15 > 0:07:18of what he was seen doing on the footage.
0:07:18 > 0:07:21With no-one to represent him, Danny Wykes withdrew his claim,
0:07:21 > 0:07:23but this story doesn't end there.
0:07:24 > 0:07:27I would imagine that he may have thought that he would
0:07:27 > 0:07:31get to keep the money he had already had and he would simply walk away.
0:07:31 > 0:07:34He was on a no-win, no-fee agreement with his solicitor, so he wasn't
0:07:34 > 0:07:38obliged to pay their costs because, effectively, he had not won his case.
0:07:38 > 0:07:41By this stage, Danny Wykes had received interim payments
0:07:41 > 0:07:43totalling around £25,000.
0:07:44 > 0:07:48So if that WAS the end of it, he'd still have pocketed a tidy sum,
0:07:48 > 0:07:53but unfortunately for him, the case was far from over.
0:07:53 > 0:07:57In a normal case like this it wouldn't be unusual for the insurer
0:07:57 > 0:07:59just to cut their losses and walk away.
0:07:59 > 0:08:04In RSA, we take a really dim view of people that try and defraud us
0:08:04 > 0:08:09because, ultimately, it affects our honest customers.
0:08:10 > 0:08:12So we applied to the court for him
0:08:12 > 0:08:15to be dealt with for contempt of court.
0:08:15 > 0:08:18Danny Wykes had gone from claimant to defendant.
0:08:18 > 0:08:21But even when it came to his defence for disrupting
0:08:21 > 0:08:25the course of justice, his version of events raised a few eyebrows.
0:08:25 > 0:08:29He initially claimed that he wasn't guilty, and in fact
0:08:29 > 0:08:33he had lacked the mental capacity to bring the civil claim
0:08:33 > 0:08:35in the first place, and somebody else should have been
0:08:35 > 0:08:39acting for him, therefore he shouldn't be held accountable.
0:08:39 > 0:08:42The court gave him permission to obtain a report from a psychiatrist
0:08:42 > 0:08:44to say whether this was the case or not.
0:08:44 > 0:08:47The psychiatrist concluded that he DID have the mental capacity.
0:08:47 > 0:08:50So that defence fell away.
0:08:50 > 0:08:53He then went on to allege that he hadn't read the court documents
0:08:53 > 0:08:58and he wasn't actually aware that he was trying to claim £2 million.
0:08:58 > 0:09:01So he tried various defences to get away with it.
0:09:03 > 0:09:05After over a year of trying different tactics to absolve
0:09:05 > 0:09:10himself of any blame, and at a cost of £12,000 in legal aid,
0:09:10 > 0:09:12Danny Wykes finally appeared in court.
0:09:12 > 0:09:14On the first day of trial,
0:09:14 > 0:09:18he admitted that he was guilty of contempt of court.
0:09:18 > 0:09:22He said that whilst he had sustained an injury to start with,
0:09:22 > 0:09:26and when he saw his first medical expert in September 2010
0:09:26 > 0:09:30he was entirely truthful, he then started to get better
0:09:30 > 0:09:33but he didn't tell anybody that he was getting better.
0:09:33 > 0:09:36He admitted that he had signed documents that he knew were false
0:09:36 > 0:09:40and that he knew that would interfere with the course of justice.
0:09:40 > 0:09:43As a result, he was found guilty of contempt of court
0:09:43 > 0:09:45and he was sentenced to prison for six months
0:09:45 > 0:09:49and ordered to pay RSA's costs of the proceedings.
0:09:49 > 0:09:51Danny Wykes had stretched the truth,
0:09:51 > 0:09:54but was now faced a six-month stretch behind bars.
0:09:54 > 0:09:59And his story is a stark reminder that when it comes to fraud,
0:09:59 > 0:10:02insurance companies are no longer easy targets.
0:10:02 > 0:10:05People probably think that there's nothing to lose
0:10:05 > 0:10:09and everything to gain by trying to get maximum damages.
0:10:09 > 0:10:12However, there is obviously, as this case shows, everything to lose
0:10:12 > 0:10:15because Mr Wykes has lost his liberty.
0:10:19 > 0:10:23Still to come, IFED discover what could be promising leads
0:10:23 > 0:10:26as a nationwide operation is carried out.
0:10:26 > 0:10:28We are finding stuff going all the way back to 2010
0:10:28 > 0:10:31right the way up to present day.
0:10:38 > 0:10:41Road traffic accidents can be a nasty business.
0:10:41 > 0:10:45They often happen in a split second, and if there's no eyewitnesses,
0:10:45 > 0:10:46then determining who's at fault
0:10:46 > 0:10:49is inevitably one man's word against another.
0:10:49 > 0:10:53This is exactly the situation that bus operator FirstGroup
0:10:53 > 0:10:55found themselves in back in 2012,
0:10:55 > 0:10:59when one of their vehicles was involved in a gruesome incident.
0:10:59 > 0:11:03This case involved a gentleman who stepped out in front of a bus
0:11:03 > 0:11:06on a busy High Street, and the driver reported that he's had a fairly
0:11:06 > 0:11:10nasty collision with an individual who's been thrown to the floor,
0:11:10 > 0:11:13he's sustained some quite serious injuries.
0:11:13 > 0:11:15And serious they were.
0:11:15 > 0:11:18In fact, the pedestrian was lucky that they weren't fatal.
0:11:20 > 0:11:24It's caused fractures to his left hip, fractures to his left thigh.
0:11:24 > 0:11:28It's quite a big bone, the thigh bone, it's quite hard to break,
0:11:28 > 0:11:30so that in itself is a nasty injury.
0:11:30 > 0:11:33He's also got some severe bruising, and he's got some
0:11:33 > 0:11:37facial injuries as well, from where he's struck the side of the bus.
0:11:37 > 0:11:41The man was hospitalised for two weeks, but it wasn't long
0:11:41 > 0:11:45before FirstGroup received a claim from him for compensation.
0:11:45 > 0:11:48Although his account of how the accident unfolded
0:11:48 > 0:11:51placed the blame solely at the feet of the driver.
0:11:51 > 0:11:56The pedestrian has told us that he's standing behind a group of people.
0:11:56 > 0:12:00He's looked to the left and to the right.
0:12:00 > 0:12:05He's seen the bus driver gesticulate towards the rest of the pedestrians to cross the road,
0:12:05 > 0:12:09and he himself has made eye contact with the bus driver
0:12:09 > 0:12:14and then stepped out, and the bus has subsequently just driven into him.
0:12:14 > 0:12:17All told, we're probably looking at around about £50,000.
0:12:19 > 0:12:22There was no disputing this was an horrendous accident,
0:12:22 > 0:12:24and with a version of events as damning as that,
0:12:24 > 0:12:27FirstGroup immediately launched an investigation.
0:12:27 > 0:12:30The first thing we're going to do is investigate fully,
0:12:30 > 0:12:32but on top of the compensation
0:12:32 > 0:12:36we're also faced with the situation that he's laying some pretty severe allegations against our driver
0:12:36 > 0:12:39so of course we want to look at the CCTV footage
0:12:39 > 0:12:41and interview as many witnesses as we can.
0:12:42 > 0:12:46Buses are equipped with as many as 16 CCTV cameras,
0:12:46 > 0:12:50covering virtually every angle inside and outside the bus.
0:12:50 > 0:12:52So, if the pedestrian's claims were true,
0:12:52 > 0:12:55then FirstGroup would be hard pressed to argue otherwise.
0:12:56 > 0:12:59The key thing to remember in the third party's version of events
0:12:59 > 0:13:02is that he makes it quite clear that the driver gesticulates
0:13:02 > 0:13:06towards the pedestrians, and that he himself has made actual eye contact
0:13:06 > 0:13:09with the driver, yet the bus still didn't stop.
0:13:09 > 0:13:13These are quite severe allegations to be making against one of our drivers.
0:13:13 > 0:13:16If the driver has made eye contact and he's carried on,
0:13:16 > 0:13:19is he saying that he's deliberately run him over?
0:13:19 > 0:13:22Highly unusual, and I'm not buying that for a second.
0:13:24 > 0:13:27There was only one way to find out what really happened.
0:13:27 > 0:13:29And fortunately for FirstGroup,
0:13:29 > 0:13:32they had the entire sequence of events on camera.
0:13:33 > 0:13:36This CCTV footage was very important
0:13:36 > 0:13:39because it revealed that the statement made by the injured
0:13:39 > 0:13:43pedestrian was total fabrication, it didn't happen.
0:13:44 > 0:13:47The best camera view is the camera from the near side
0:13:47 > 0:13:49looking towards the front of the bus,
0:13:49 > 0:13:53which clearly shows the pedestrian walking along the path,
0:13:53 > 0:13:57and for absolutely no reason at all, with no real warning,
0:13:57 > 0:14:01he just turns right and steps into the path of the bus.
0:14:02 > 0:14:05The camera in the driver's cab
0:14:05 > 0:14:08shows there were no gesticulations from the driver.
0:14:08 > 0:14:10With evidence as clear as this,
0:14:10 > 0:14:14the pedestrian's case wasn't exactly what you'd call rock solid.
0:14:14 > 0:14:18I would say this whole claim hinges on the fact that this gentleman has
0:14:18 > 0:14:21said that the driver has waved him across, made eye contact with him.
0:14:21 > 0:14:25He's assumed it's safe to cross, and the bus has then driven into him.
0:14:25 > 0:14:28We know that just did not happen.
0:14:29 > 0:14:31Just to be sure, let's take another look.
0:14:33 > 0:14:35As the bus approaches, we can clearly see that the man
0:14:35 > 0:14:38is walking along the road and is not waiting to cross.
0:14:38 > 0:14:40Meanwhile, in the cab,
0:14:40 > 0:14:44at no point does the driver raise his hand to wave the man over.
0:14:45 > 0:14:49When the pedestrian steps out into the road, it's only when the bus is
0:14:49 > 0:14:52inches from his face that he turns to see whether it's safe to cross.
0:14:55 > 0:14:59It felt very good to actually throw this claim out because we could prove
0:14:59 > 0:15:02that this chap was just not telling the truth.
0:15:02 > 0:15:05We don't like people who don't tell the truth, it makes our job harder!
0:15:07 > 0:15:10There is a valuable lesson to be learned from this case,
0:15:10 > 0:15:13and that's to be honest about where the blame really lies
0:15:13 > 0:15:15before submitting a claim.
0:15:15 > 0:15:18Because if you're the one who's at fault,
0:15:18 > 0:15:21then the chances are you don't have a leg to stand on.
0:15:22 > 0:15:25I think, despite the fact that he's suffered some very severe
0:15:25 > 0:15:29injuries, I think it's disgraceful that he's deliberately tried
0:15:29 > 0:15:34to mislead us just so that he can get a pay out on his injuries.
0:15:34 > 0:15:37And no-one's denying the fact that they were severe,
0:15:37 > 0:15:39but you can't just expect someone else to pay up
0:15:39 > 0:15:43because you've not looked properly when you've crossed the road.
0:15:48 > 0:15:52In January 2012, the police joined the fight against insurance fraud
0:15:52 > 0:15:55by forming an elite squad known as IFED,
0:15:55 > 0:15:57the Insurance Fraud Enforcement Department.
0:15:59 > 0:16:02IFED is a dedicated team that deals with insurance fraud.
0:16:02 > 0:16:06Whatever insurance policy there is out there, we investigate it.
0:16:06 > 0:16:09There is a dedicated 40-strong unit that work 24/7,
0:16:09 > 0:16:12hunting down insurance fraudsters.
0:16:13 > 0:16:16IFED has made over 450 arrests
0:16:16 > 0:16:19and saved millions of pounds in fraudulent insurance claims,
0:16:19 > 0:16:22money which ultimately goes back in our pockets.
0:16:22 > 0:16:25From now on, fraudsters need to watch their backs.
0:16:25 > 0:16:27We are out there in numbers.
0:16:27 > 0:16:30You might get a nasty knock on your door in the morning
0:16:30 > 0:16:31if you commit this type of fraud.
0:16:31 > 0:16:33Police, don't move! Stay where you are.
0:16:35 > 0:16:38It's 5:50am, and today IFED are carrying out
0:16:38 > 0:16:40a major nationwide sting
0:16:40 > 0:16:44involving over 100 police officers across the country.
0:16:44 > 0:16:47Today's operation is targeting suspected fraudsters
0:16:47 > 0:16:50who make fake insurance claims for courtesy cars,
0:16:50 > 0:16:53provided to motorists while their vehicles are being fixed.
0:16:53 > 0:16:56With 20 warrants being simultaneously executed
0:16:56 > 0:16:57across the UK,
0:16:57 > 0:17:01this is IFED's largest operation this year.
0:17:01 > 0:17:04DC Jamie Kirk and DS Marcus Allen are heading up
0:17:04 > 0:17:06one of the many units.
0:17:06 > 0:17:08Today is massive because warrants will be executed
0:17:08 > 0:17:12at home addresses, where we hope to arrest the suspects
0:17:12 > 0:17:17and then move on to business addresses to seize items
0:17:17 > 0:17:22which will show the level of criminality of those involved.
0:17:24 > 0:17:26The first stop for Marcus and Jamie
0:17:26 > 0:17:30is what's believed to be the home address of the prime suspect.
0:17:35 > 0:17:40- Good morning.- Morning.- We're officers from the City Of London Police.
0:17:40 > 0:17:44We've got a warrant to come into the premises, so we need to come in.
0:17:44 > 0:17:47We'll come in and we'll explain what's happening to you.
0:17:47 > 0:17:51But once inside, the team hit a bit of a dead end.
0:17:51 > 0:17:53We've got a warrant to search this premises.
0:17:53 > 0:17:56It's in relation to a chap called...
0:17:59 > 0:18:01You know him, don't you?
0:18:01 > 0:18:03I can tell by your answer you know him.
0:18:03 > 0:18:07It turns out that although this house belongs to the suspect,
0:18:07 > 0:18:09the family living here are actually tenants
0:18:09 > 0:18:11and are nothing to do with the investigation.
0:18:11 > 0:18:14But that doesn't mean they can't be of assistance.
0:18:14 > 0:18:17Do you have a contact number for him?
0:18:17 > 0:18:19OK, can we have that?
0:18:19 > 0:18:21They might not have got their man yet,
0:18:21 > 0:18:23but Marcus and Jamie have been given contact numbers
0:18:23 > 0:18:26for both the suspect and his family.
0:18:26 > 0:18:28Right, we have a warrant here.
0:18:28 > 0:18:30That warrant has been signed by a judge
0:18:30 > 0:18:33and that gives us the authority to search this house.
0:18:42 > 0:18:44There's no sign of the offences we're investigating,
0:18:44 > 0:18:46no evidence for that.
0:18:46 > 0:18:49So what we need to do now is contact him.
0:18:49 > 0:18:52We've got officers at the business address,
0:18:52 > 0:18:55so if he turns up there to get rid of any evidence
0:18:55 > 0:18:58he'll be intercepted, arrested and a warrant will be done there.
0:18:58 > 0:19:00Although the team now have phone numbers for the suspect
0:19:00 > 0:19:02and his family,
0:19:02 > 0:19:04as yet they haven't been able to get hold of either of them.
0:19:06 > 0:19:09We're going to the business premises,
0:19:09 > 0:19:12where we will wait for office hours,
0:19:12 > 0:19:16and hopefully staff or our suspect will turn up.
0:19:16 > 0:19:20We'll arrest the suspect if he turns up.
0:19:20 > 0:19:21If staff turn up there,
0:19:21 > 0:19:24we'll execute the warrant and search the premises for evidence.
0:19:28 > 0:19:30Through here, then a right at the end.
0:19:31 > 0:19:33It's still only 8:00am,
0:19:33 > 0:19:36so it's a waiting game for the team as they stake out the offices.
0:19:38 > 0:19:40But while they're lying in wait,
0:19:40 > 0:19:43the suspect's family returns their phone call.
0:19:43 > 0:19:44My name's Jamie Kirk,
0:19:44 > 0:19:47I'm a detective with the City Of London Police.
0:19:47 > 0:19:50I came to your brother's property this morning,
0:19:50 > 0:19:51cos I need to speak to him
0:19:51 > 0:19:55and I need to speak to you in relation to some matters.
0:19:55 > 0:19:58Where's your brother, then? Where is he?
0:19:58 > 0:20:00He must be somewhere.
0:20:00 > 0:20:02He's gone back home?
0:20:02 > 0:20:03Well, where's back home?
0:20:04 > 0:20:08It sounds as though the main suspect may be overseas.
0:20:08 > 0:20:10But his family has given them an address
0:20:10 > 0:20:12which they didn't know was connected to the case.
0:20:13 > 0:20:15So Jamie and Marcus are going to leave another team
0:20:15 > 0:20:19to stake out the office, while they chase up this unexpected lead.
0:20:29 > 0:20:33Right, I don't think we should rest on our laurels.
0:20:35 > 0:20:37Number one...yeah.
0:20:38 > 0:20:41- Right, shall we go? - Let's go in, yeah.
0:20:46 > 0:20:49DC Kirk from City Of London Police, just spoke you on the phone.
0:20:49 > 0:20:51I need to come in and talk to you.
0:20:51 > 0:20:55The cameras remain outside, but the investigation is progressing well.
0:20:57 > 0:21:00The business premises for which we have a warrant,
0:21:00 > 0:21:01there is activity there,
0:21:01 > 0:21:04so officers have gone through the door of the business premises.
0:21:04 > 0:21:07They'll secure that. We'll start the search.
0:21:07 > 0:21:09Hopefully, the suspect may even turn up there.
0:21:09 > 0:21:11In the meantime,
0:21:11 > 0:21:13we're doing a comprehensive search of the premises here.
0:21:13 > 0:21:16We've already found some documentation
0:21:16 > 0:21:18that may be linked to the offence.
0:21:18 > 0:21:22We found cash in one of the vehicles outside the address,
0:21:22 > 0:21:25and also some money secreted in one of the bedrooms.
0:21:27 > 0:21:30The person arrested, the brother of the main suspect,
0:21:30 > 0:21:31has been taken away now.
0:21:31 > 0:21:35He'll be held at the police station and we'll question him in due course.
0:21:37 > 0:21:40IFED have managed to confirm that their main suspect is abroad,
0:21:40 > 0:21:42so they'll have to wait to get their hands on him.
0:21:42 > 0:21:45But all is not lost, as another family member,
0:21:45 > 0:21:48who is also believed to be involved, has been arrested
0:21:48 > 0:21:51and taken to the local police station for questioning.
0:21:51 > 0:21:54We are finding stuff going all the way back to 2010
0:21:54 > 0:21:56right the way up to present day.
0:21:56 > 0:22:00There's round about £90,000 we've managed to identify so far.
0:22:00 > 0:22:02Just from looking at documentation here,
0:22:02 > 0:22:04I would imagine that our financial investigators
0:22:04 > 0:22:06are going to find substantially more than that.
0:22:11 > 0:22:13With everything at the house done and dusted,
0:22:13 > 0:22:16Marcus and Jamie head to the business premises
0:22:16 > 0:22:19where they soon discover documents of interest.
0:22:19 > 0:22:24We've found documentation that supports the allegations
0:22:24 > 0:22:26of defrauding the insurance companies.
0:22:26 > 0:22:29This is the specific claims where we know
0:22:29 > 0:22:33that the fraud's been made in these names.
0:22:33 > 0:22:36So if we can get the original paperwork for that, that's great.
0:22:38 > 0:22:41It's been a long day with many twists and turns,
0:22:41 > 0:22:44but Marcus and Jamie are delighted with the way things have gone.
0:22:44 > 0:22:50The original was 26 claims and we were looking at around £90,000.
0:22:50 > 0:22:52I think we're in excess of that.
0:22:52 > 0:22:57So, with everything else today it's a great job, really.
0:23:01 > 0:23:04As successful as today has been,
0:23:04 > 0:23:06there's a final loose end to be tied,
0:23:06 > 0:23:08or more likely, collared and cuffed.
0:23:10 > 0:23:13Yeah, it's been a great day - successful, achieved everything,
0:23:13 > 0:23:17just one thing we need to do now is to arrest the main suspect.
0:23:17 > 0:23:19Just got some information in that
0:23:19 > 0:23:21he's flying into the country on Monday.
0:23:21 > 0:23:24We need to get him early as possible,
0:23:24 > 0:23:26so he doesn't have the chance to speak to others
0:23:26 > 0:23:28and to maybe destroy evidence.
0:23:28 > 0:23:31Therefore I will be there, and we will be the welcoming committee
0:23:31 > 0:23:32when he steps off the plane.
0:23:38 > 0:23:41A total of 17 people were arrested across the country
0:23:41 > 0:23:45as part of IFED's nationwide operation into credit hire fraud.
0:23:52 > 0:23:54As any animal lover will tell you,
0:23:54 > 0:23:57getting a pet can be an exciting time.
0:23:57 > 0:24:00But for breeders, handing over a young puppy or kitten
0:24:00 > 0:24:04to a new family can be a precarious business, as there's no way
0:24:04 > 0:24:07of knowing whether there will be any problems with the animal's health.
0:24:07 > 0:24:10Thankfully, many pet insurers provide breeders
0:24:10 > 0:24:12with a short-term period of cover.
0:24:12 > 0:24:15There's a facility that insurance companies offer breeders
0:24:15 > 0:24:18when they're selling new puppies and kittens,
0:24:18 > 0:24:23and that is to put a temporary period of insurance on the puppy or kitten
0:24:23 > 0:24:27that allows the new owner the ability just to take the puppy or kitten
0:24:27 > 0:24:30to the vet at the earliest sign that they suspect a problem.
0:24:30 > 0:24:33Because most of the breeders are breeding pedigree animals,
0:24:33 > 0:24:38because there's a purchase price involved, there is the ability,
0:24:38 > 0:24:41if the animal does sadly die, to claim for the purchase price.
0:24:41 > 0:24:44So it protects the new owner, ensures the puppy has the best care
0:24:44 > 0:24:47and it also to a certain extent protects the breeder.
0:24:47 > 0:24:51But for unscrupulous scammers, even a short-term insurance policy
0:24:51 > 0:24:55like this can be used as a means to cash in.
0:24:55 > 0:24:59Which is something that Agria Pet Insurance discovered in 2012.
0:24:59 > 0:25:02The breed was a pug. A young puppy.
0:25:02 > 0:25:04Sold at the end of December in 2012,
0:25:04 > 0:25:06and a few days later
0:25:06 > 0:25:10it was presented to a vet with acute respiratory problems.
0:25:10 > 0:25:12Not unusual for a pug puppy.
0:25:12 > 0:25:17The puppy was seen by the policyholder's vet,
0:25:17 > 0:25:21and then seen again by the breeder's vet and sadly euthanized.
0:25:22 > 0:25:24Losing a pet is never easy.
0:25:24 > 0:25:27But in this case it was particularly painful,
0:25:27 > 0:25:30because pedigree pugs don't come cheap.
0:25:30 > 0:25:34Normally, pug puppies will be sold maybe between £800 and £1,500,
0:25:34 > 0:25:37and the purchase price that the policyholder was claiming for
0:25:37 > 0:25:40in this instance was about £1,500.
0:25:40 > 0:25:41It was a hefty loss.
0:25:41 > 0:25:44But it wasn't just the new owners who were out of pocket.
0:25:44 > 0:25:50Our suspicions were that the breeder had had a litter of pugs,
0:25:50 > 0:25:52maybe one or two in the litter.
0:25:52 > 0:25:56The breed also have usually Caesarean sections,
0:25:56 > 0:25:58so there would have been investment by the breeder
0:25:58 > 0:26:00just to have the puppies born.
0:26:00 > 0:26:03So the breeder had money on the table,
0:26:03 > 0:26:04and if one puppy wasn't saleable
0:26:04 > 0:26:08because it wasn't well, he was going to lose some investment.
0:26:08 > 0:26:11Fortunately, the policy that was in place would cover
0:26:11 > 0:26:15the financial loss, but as Agria began to process the claim,
0:26:15 > 0:26:17they noticed something rather unusual.
0:26:17 > 0:26:19Our suspicions were alerted with this case
0:26:19 > 0:26:23because the policyholder and the breeder had the same surname.
0:26:23 > 0:26:25In itself, that's not a fraud indicator.
0:26:25 > 0:26:27However, when the claim form was submitted,
0:26:27 > 0:26:30a letter came in stating categorically
0:26:30 > 0:26:32that the breeder and the policyholder,
0:26:32 > 0:26:36although they shared the same surname, weren't related.
0:26:36 > 0:26:38That's quite important because, with this type of policy,
0:26:38 > 0:26:43if the breeder has sold the puppy to a new owner, and issued
0:26:43 > 0:26:46the insurance, and that new owner is a member of the family,
0:26:46 > 0:26:49the insurance will be invalid.
0:26:49 > 0:26:54Unsurprisingly, Agria began to investigate the legitimacy of the claim.
0:26:54 > 0:26:57So we approached the owner and the breeder
0:26:57 > 0:27:00to just determine they weren't in fact related.
0:27:00 > 0:27:05We asked them the question, they denied that they were related,
0:27:05 > 0:27:07but then they became very evasive
0:27:07 > 0:27:11and trying to get hold of them became very difficult.
0:27:11 > 0:27:14And, as it turned out, there was good reason as to why the owner
0:27:14 > 0:27:18and the breeder weren't responding to the insurance company's calls.
0:27:18 > 0:27:19When we started to probe,
0:27:19 > 0:27:21when we started to look at the veterinary records,
0:27:21 > 0:27:24and the vet categorically had got
0:27:24 > 0:27:26the owner and the breeder down as brothers.
0:27:26 > 0:27:28When we looked at Facebook
0:27:28 > 0:27:31and social media, it was very evident that the two were related
0:27:31 > 0:27:33and the policy was invalid.
0:27:33 > 0:27:37Thankfully, a fraudulent claim had been avoided,
0:27:37 > 0:27:40but this is typical of the kind of underhanded activity
0:27:40 > 0:27:43that companies like Agria need to be on their guard against.
0:27:43 > 0:27:46I think in this instance it was an opportunistic claim.
0:27:46 > 0:27:49I think breeders think that insurance companies
0:27:49 > 0:27:51are remote and distant,
0:27:51 > 0:27:55and with the volume of claims that certainly go through with pet insurance,
0:27:55 > 0:27:57this one will probably slip under the radar.
0:27:57 > 0:28:01No, it's not sophisticated fraud, it's very opportunistic fraud,
0:28:01 > 0:28:03it's often not thought through at all.
0:28:03 > 0:28:07For the individuals who think they can get away with this, we're looking for them.