Arrests were made earlier this week after an 18 month long investigation by members of the Germiston: Organised Crime Unit and The Insurance Crime Bureau.
Six people, believed to be part of a fraud syndicate, were arrested on the morning of 22 March 2012 for fraud, conspiracy to commit fraud and money laundering. The syndicate comprising of members from the same family, operating in the East Rand area, were exposed as a result of intensive investigation by SAPS, The Insurance Crime Bureau, AFU, SARS and the assistance of the National Prosecuting Authority (NPA).
It is alleged that the main accused bought written off vehicles from salvage companies and registered it in his name and those of his family members. He later insured these vehicles through a third party. Shortly after the inception of the insurance policies, various claims were submitted by the insured for windscreen damage.
The vehicle windscreen claims were then paid by the insurers involved. The vehicles would later be allegedly involved in a single vehicle accident with no witnesses to the event and towed by the main accused's own company.
The individuals that insured the vehicles were paid out by the insurer and the insured paid over the monies to the main accused and they kept a small amount of the monies.
The following Modus Operandi was identified:
- The vehicles were written off by an insurance company
- The vehicles were bought by the suspect
- The vehicles were insured by a third party (family member)
- There were windscreen claims
- The vehicles were involved in a single vehicle accident
- The vehicles were towed by a company of the main accused
- There were no witnesses to the accidents