Claims Manager Fraud – Jail Sentence

It was recently announced that a claims managers has been sentenced to jail for 21 months. The claims manager has been reported to have made fraudulence claims for insurance.

Asif Mallu, the manager of a claims company, is said to have organized about 10 claims during the months between May and December in the year of 2005. Mr. Mallu has made more than £12,000 according to some sources. This money had come from referral fees of solicitors, courtesy car hire and also the necessary recovery of vehicles. Mr. Mallu was the claims manager for  24/7 Direct Claims Ltd in Bolton. He was also reported to be involved in a crime network, which also included Mohammed Patel, who in 2009 was convicted of deliberately causing about 90 collisions.

It was reported that Mr. patel earned his cash by driving cars that belong to people, who willingly chose to give up their key as well as insurance details. Based on the crime networking scheme, claimants would afterwards demand a compensation for both personal injuries and legal fees. All these expenses are as well covered by the insurers of the other party.

However, the well planned scam was exposed in 2005. The scam was reported by workers of a nearby office at the roundabout in Cheadle. What they noticed was that accidents happened regularly there, always at the same spot. Additionally, workers also noted that the collisions usually happened at a low speed and more often than not involved one and the same driver.

One of the insurance companies affected by the fraud, decided to examine the case. The insurance company presented its finding to Greater Manchester Police and an investigation began, i.e. Operation Contact. The chief inspector of the Greater Manchester Police said that Mr. Mallu’s claims company had been registered according to the terms of the Ministry of Justice. He also said that the company had a visible business in Bolton and that it served as ‘front for fraud’. The chief inspector additionally added that the scam had caused the victims to feel not only cheated, but also violated. The insurance companies involved had also reported that because of the scam, their premiums had increased. That is why, the idea of this sort of crime to be treated as victimless is not justified. As the director of law enforcement at a Bolton-based law firm, Mark Beales, said, the main person to be held responsible is Mr. Mallu as it is his company that allowed so many fraudulent claims to take place. Mr. Mallu has pleaded guilty of charges and as a result was obliged to pay a confiscation of the amount of £7,250 within 28 days.

After the Operation Contract was supported by the Infurance Fraud Bureau, it was reported that more than 50 people were convicted as a result.

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