Fake That!

Stooge and 20 accomplices prosecuted for fraud after bizarre performance caught on CCTV.

A case pursued by Keoghs has finally resulted in the private prosecution of 21 fraudsters and savings of over £140,000 in potential liability for the insurer, Service Insurance Company Limited through handling agents Key Claims and Administration Services Ltd.

The initial incident involved 19 defendants who were passengers on a bus and two others; the driver and passenger of a Nissan Micra which proceeded to collide with the back of the bus. It was alleged at trial that all of the defendants had pre-planned the incident with the aim of making fraudulent insurance claims.

In an unprecedented judgment at Leeds Crown Court, Her Honour Judge Belcher sentenced 19 of the defendants to a total of 29 years and 4 months with sentences ranging from 12 months through to 21 months. 16 of the defendants were given immediate custodial sentences with the other three receiving suspended sentences in this ground-breaking case. Unusually, Keoghs also sought and secured a conviction for dangerous driving, and the driver of the Micra received a 3 year ban with 3 months added to his prison sentence; underlining the potential loss of both liberty and license for fraudsters who stage accidents involving innocent members of the public. The driver was also ordered to take an extended driving test. Two of the defendants have yet to be sentenced.

Importantly, given this was a civil defence, the judge also granted an order that the prosecuting insurer’s costs should be paid from central funds.

Prior to the private prosecution being commenced the police were invited to arrest the defendants and the CPS were invited to take over the prosecution.  No response was received to either invitation though West Yorkshire Police have supported the prosecution and made arrests of defendants for non-appearances at court. As a result, Keoghs pushed on with the investigation.

Damning evidence was secured from security camera footage which captured the bizarre moment when 19 performers began a pre-rehearsed routine which would put any Take That tribute act to shame.  In the footage, the elaborate performance included the claimants signalling to each other and jumping up holding their necks, implying they had been involved in a serious collision. One man flung himself down the aisle of the bus while others began to act out serious injuries and demand ambulances from the bus driver who later stated he had felt nothing more than a slight tremor through the steering wheel. All this while an incredulous and innocent passenger looked on in amusement, having been completely unaffected by the incident. Indeed the routine was so over the top, one defendant couldn’t stop himself from laughing!

A camera stationed on the rear of the bus also revealed the moments leading up to the group’s sub-par performance, as the Nissan Micra struggled to keep pace with the bus in scenes more akin to a situation comedy than footage of a genuine accident. Then, as the bus slows down to approach a junction, the driver accelerates in order to hit the rear of the bus, triggering the extraordinary reaction which would be funny if it weren’t fraudulent.

Prior to these events, the 19 bus-bound defendants had already drawn attention to themselves by all boarding the bus from the same stop. Whilst this was suspect in itself, the fact that the stop rarely held a ‘queue’ of more than one or two people made it doubly so. Investigations from Keoghs Intelligence also revealed via Facebook that a number of the defendants knew each other, making their behaviour prior to the incident even stranger as they positioned themselves around the bus, not talking to each other.

Barrister David Dixon, who conducted the case with Keoghs, raised further examples of odd behaviour at trial. Video footage immediately following the incident showed that the allegedly injured passengers completely ignored the driver of the car (despite some of them knowing him), instead choosing to harangue the bus driver who obviously hadn’t been at fault having slowed normally at a junction.

Several of the defendants were also caught on camera watching from the back of the bus, waiting for the bump to occur, then signalling the other defendants to begin the charade.

Such damning evidence left judge HHJ Belcher in no doubt of the defendants’ guilt, stating:

“The insurer is to be commended. I have no hesitation whatsoever in awarding the insurer the costs of bringing the prosecution.”

Keoghs Director of Fraud Technical Policy & Quality, Damian Ward, who led the case for Service, was delighted with the result:

“We are very pleased with the sentences handed down. This was a most unusual case, not only in terms of circumstances, but also given that we brought a private prosecution against 21 defendants. It is testament to the tenacity of our Fraud and Intelligence teams and our fantastic relationship with prosecution counsel that this was successful, despite an initial refusal from the Magistrates Court to issue a 21 handed private prosecution. It was also satisfying to take a dangerous fraudster off the road with an additional driving ban. We hope this result sends out a clear message that insurers are willing to take whatever steps are necessary, including prosecution, to stop such fraudulent activity.”

Keith Newing, owner of Service Insurance Company Limited, commented:

“Service Insurance Company Limited is delighted that its collaboration with its trusted partners has resulted in the conviction of fraudsters. All too often insurers are forced to pay claims even though there are serious suspicions of fraud which costs the industry and innocent policyholders in the longer run. This time the fraudsters did not get away with it and Service Insurance is hopeful that this landmark case may deter others from bringing fraudulent claims in the future."