Fraudster Fakes His Own Death In 4.5 Million Rand Scam

The Insurance Crime Bureau received an enquiry from one of our Member companies, for a suspicious life cover claim to the value of R 4.5 million. Two different claimants were identified and claims were submitted for the deceased, who allegedly passed away due to natural causes at their place of residence.

During the investigation, our Life investigators discovered that the deceased was still alive (walking dead) and was the one who orchestrated everything with the intent to defraud the industry. Statements were obtained from the “deceased” person, claimant as well as the undertaker as he registered the false death.

The investigators compiled a comprehensive case docket and registered it which was assigned for further investigation. The matter was then taken to court for decision and it came back with the instructions that the investigator must execute warrants of arrest against the deceased person, claimant, informant, and undertaker.

In collaboration with the SAPS investigators, our team was able to assist in traking down the suspects and managed to arrest the deceased, one claimant and undertaker. The outstanding claimant is on the run and is circulated on the SAPS wanted system.

The suspects were then charged and taken to court where they appeared for fraud. During the trial, the charges against the undertaker were withdrawn and he was turned into a Section 204 state witness.

The matter has been on the court roll since 2021 and on the 28th October 2022 accused number 1 (the “deceased person”) pleaded guilty. He was sentenced to eight years imprisonment, half suspended for five years and declared unfit to possess a firearm.

Congratulations to our investigators, Members, Law Enforcement Agencies and everyone involved in tracking down these criminals! This has once again proven the importance of Public Private Partnerships, resilience and dedication which has resulted in this breakthrough in addressing life insurance fraud.