Cash-for-crash car insurance fraud ring ordered to pay damages
Members of a convicted whiplash car accident gang have been ordered by the High Court to pay around £400,000 in costs and compensation claims to their victims.
The 57-member gang, which operated in and around Manchester, staged whiplash claim car collisions at around 30 different locations.
Police prosecuted the criminals after suspicions were aroused about the number of no win no fee accident claims received by insurers for multiple accidents occurring at single locations.
It also emerged that the same telephone number had been given out at thirty "separate accidents".
The judge hearing the case commented, "This was not a case of contrived accidents where two people seek to arrange an accident to defraud an insurance company. Ordinary members of the public were used as pawns.
"The court needs to send a clear message to those who engage in conduct of this nature that this will not be tolerated ... and this award of exemplary damages is entirely appropriate."
A spokesperson for one of the insurers affected by the scam, said that the ruling "is a milestone victory against a well-organised fraud ring."
Updated on 05/02/2010