A man has been jailed after attempting to commit a ‘crash for cash’ fraud involving an Aston Martin – which could have cost insurers $125,730.
Edwin White, 65, deliberately staged a collision with Nicholas Ralph, 67, with both exposing themselves “to the risk of physical harm in seeking to obtain insurance money”.
On May 4, 2018, a Peugeot 208 driven by Ralph collided with an Aston Martin DB9, driven by White.
White contacted his insurer, DLG, to report that the Peugeot had hit a pothole in the road and swerved into the path of the Aston Martin.
He then claimed he swerved in an attempt to avoid the car, causing his Aston Martin to hit a wall and pole.
He said he paid $75,400 for the Aston Martin and purchased it in very good condition.
A few hours later, Ralph contacted his insurer, LV=, to report the collision and claim damage to the Peugeot.
Ralph and White alleged that they did not know each other and LV= settled Ralph’s claim for $7,930.
Despite White’s claim that he purchased the Aston Martin in good condition, examinations commissioned by insurers showed the interior was in poor condition.
Insurers also found that the garage where White purchased the Aston Martin did not regularly sell vehicles at such a high price.
LV= commissioned GBB to carry out a further examination of the cars, which concluded that the damage to the Peugeot was not consistent with a pothole.
On July 9, White told DLG he had found the contact details of a third party, Clive Moore, who had witnessed the collision.
Moore was interviewed by LV=, during which he stated that he was driving behind the Aston Martin and witnessed the collision.
White sent DLG a bank statement as proof that he paid $75,400 for the Aston Martin.
When LV= inquired with White’s bank, it was unable to trace the transaction.
On August 23, LV= received an invoice totaling $53,855 for car rental charges. Due to concerns about the validity of the claims, LV= canceled Ralph’s insurance policy and required him to repay the $7,930 he had received in compensation.
The next day, White learned that his request had been rejected.
All three men were subsequently arrested and charged and, following three trials at Gloucester Crown Court in August, they were all found guilty of fraud by false representation and perverting the course of justice.
They were convicted at the same court on December 19 and White, of Dibden Lane, Tewkesbury, was sentenced to 18 months’ imprisonment.
Ralph, of Station Road, Cheltenham, was sentenced to six months’ imprisonment, suspended for 12 months. He must also pay compensation of $7,930 to LV= and a fine of $1,257.
Moore, 51, of Hanham Road, Bristol, was given a nine-month community order. He must also complete 100 hours of unpaid work and pay a fine of $1,257.
City of London Police said the fraud, if successful, could have cost LV = General Insurance $129,230.
Det. Sgt. Chris Jones, of the City of London Police’s Insurance Fraud Enforcement Unit (IFED), said: “White and Ralph could have put themselves at risk of physical harm in seeking to recover the insurance money.
“Cases like this demonstrate the greed of insurance fraudsters and the measures they take to obtain financial gain.
“The cash fraud incident is driving up the cost of insurance premiums for the public.
“On average, more than $1.6 million in false auto insurance claims were detected every day in 2023, showing that insurance fraud does not go unnoticed by the industry or enforcement agencies. the order. We will work collaboratively to bring fraudsters to justice, as this case shows.
Ben Fletcher, director of financial crime at LV=, said: “Crash cash fraud is a serious problem and these verdicts will serve as a warning to anyone considering staging a crash to falsely claim compensation.
“The vast majority of claims are genuine and we do everything we can to resolve them quickly, but this case highlights the lengths to which some people are prepared to make fraudulent claims.
“We are committed to identifying and defending against all types of fraud. The message here is simple: if your complaint is genuine, we will process it as quickly and fairly as possible. If greed takes over and you try to commit fraud, be aware that you could face unforeseen consequences, including a court conviction and a criminal record.
The case was brought before IFED in September. Call data was obtained and showed that Ralph and White had been in contact before and after the collision.
Stuart Stevens, head of fraud at Direct Line Group, said: “At Direct Line Group we are committed to detecting and deterring as much fraud as possible and across our business. We have highly trained investigators who continually work with intelligence to crack down on fraudulent claims like this.
“We work with all law enforcement agencies to help them prepare cases for criminal prosecution. We are pleased that the perpetrators of this fraud have been brought to justice.
Their sentences should serve as a stark warning to others that insurance fraud is not a victimless crime, and tough sentences will be sought to support Direct Line Group’s zero-tolerance approach to insurance fraud.
