Fraudsters can't swerve justice
- Direct Line Group and The Insurance Fraud Enforcement Department (IFED) succeed in case against two criminals who have been jailed after being found guilty of fraud by false representation
- Two individuals tried to fraudulently stage a collision, after purchasing already damaged vehicles just weeks earlier
- Were the fraudulent claims successful the defendants would have jointly received almost £90,000 in damages and costs
Sentencing has been passed for two criminals found guilty of fraud by false representation, on April 22nd at Inner London Crown Court, following a joint investigation by Direct Line Group and The Insurance Fraud Enforcement Department (IFED), a specialist unit with the City of London Police. Were the fraudulent claims successful the defendants would have jointly received almost £90,000 in damages and costs.
An investigation led by Direct Line Group revealed falsified evidence had been provided for a collision that ‘apparently’ occurred on Long Marston Lane, Cheddington, in August 2019, just two weeks after an insurance policy had been taken out with the Group. Both vehicles were written off following the initial claim.
Thomas Spencer, the defendant and policyholder, made a call claiming to have swerved off the road to avoid an animal colliding with a third party as a result. The second defendant, Tiffany Johnson, apparent driver of the third-party vehicle jointly colluded in the claims made by Spencer. The two defendants stated there were no connections between them, although a review of their social media accounts proved that not to be the case.
The initial claim, including inaccuracies submitted through a third-party management company and exaggerated costs for damages and injuries, led to an investigation by Direct Line Group’s Counter Fraud team. An extensive examination of the vehicles involved showed that the substantial front-end damage on both cars had occurred before the alleged incident took place and that injuries sustained were not consistent with the statements provided.
The vehicle driven by Spencer, did not have any relevant purchase paperwork and the third-party vehicle had been listed on an auction site in May 2019, with damage clearly visible. This website also noted the vehicle’s mileage, which proved the car had not been driven since purchased from the site.
Associated costs for the claim amounted to almost £90,000, with the third-party vehicle write off at £40,000, hire costs of £18,000 and £28,000 for associated injuries. All of these can now be recovered or will not be paid out.
The court hearing saw Thomas Spencer handed a ten-month custodial sentence and Tiffany Johnson, twenty-two months. Neither defendant was offered a suspended sentence to highlight the severity of their crimes, the impact on the insurance industry and anyone who is looking to obtain motor insurance.
Martin Milliner, Managing Director of Claims at Direct Line Group comments: “These sentences are proof that anyone looking to submit fraudulent insurance claims will be punished accordingly. We are committed to ensuring that all fraudulent claims are dealt with by the relevant authorities and are delighted that these individuals have been brought to justice.
“This case highlights the relentless work of our teams to protect the public and stop criminals. Fraudulent claims increase the cost of cover for innocent motorists, so it is vital the industry continues to work in partnership with law enforcement agencies to help protect the public. Thank you to IFED for their continued support and collaboration on this ensure justice for these crimes.”
Detective Constable Deborah O’Loughlin-Whitby, from the City of London Police’s Insurance Fraud Enforcement Department (IFED), said: “Johnson and Spencer thought they were being clever by buying damaged cars to try and defraud Direct Line Group out of a substantial sum of money. What the pair didn’t realise is that red flags in bogus insurance claims will be picked up.
“Thanks to the due diligence from Direct Line Group, we were able to build a criminal case against Johnson and Spencer and put them before the courts. The sentences handed down to them should serve as a warning that there are serious consequences to making false insurance claims.”
ENDS
For further information, please contact:
Chelsey Wheeler
Deputy Head of News and Issues – Direct Line Group
Chelsey.Wheeler@directlinegroup.co.uk
Ewan Robertson
Head of External Communications
Mob: 07779718865
Ewan.Robertson@directlinegroup.co.uk
Direct Line Insurance Group plc
Direct Line Group (DLG) is one of the UK’s leading insurance companies. The Group’s vision is to create a world where insurance is personal, inclusive and a force for good. Through its well-known brands which include Direct Line, Churchill, Privilege, Darwin, Direct Line for Business and Green Flag, DLG helps people to carry on with their lives, giving them peace of mind now and in the future. Its brands offer a wide range of general insurance products across motor, home, commercial, pet and rescue, both direct to customers and through price comparison websites and it underwrites insurance products distributed by its third-party partners. The Group believes that by embracing sustainable practices it creates a better corporate culture able to provide more reliable products and bring long-term rewards for its customers, people and shareholders.