Manchester Evening News
MANCHESTER, England — The head of an accident management company who processed fraudulent insurance claims in a crash for cash’ scam has been jailed.
Asif Mallu’s sentencing brings to a close Operation Contact, one of the largest police investigations ever carried out into staged crashes and subsequent bogus compensation applications.
Mastermind Mohammed Patel, of Nottingham Drive, Bolton, deliberately caused collisions, while others went on to make fraudulent claims. He was jailed in 2009.
Patel duped innocent motorists by suddenly slamming his brakes on at roundabouts so cars would crash into the back of his car largely on the A34 Handforth bypass in Cheadle Hulme.
He charged up to 500 for his clients’, crashing their vehicles so they could make inflated claims.
The total value of bogus claims tops 12m.
More than 50 people have been convicted as part of the probe.
Mallu, 38, of Jedburgh Avenue, Heaton, Bolton, pleaded guilty at Minshull Street Crown Court, Manchester. to conspiracy to commit fraud and was jailed for 21 months. He was also ordered to repay 7,250. The court was told that he would have netted more than 60,000 if insurance companies hadn’t spotted a fraud and refused to pay out on claims.
Mallu ran 24/7 Direct Claims Ltd and organised seven fraudulent claims between May and December 2005, following collisions deliberately caused by Patel. The scam ensured that all those involved would earn money at the expense of the other parties’ insurers.
Claimants would earn compensation for personal injuries and Patel a fee for driving the cars which braked.
Mallu’s company made money from solicitors’ referral fees, courtesy car hire and the storage and recovery of damaged cars.
The court heard that office staff overlooking a roundabout on the A34 raised the alarm due to the sheer volume of collisions in the same spot.
Judge Bernard Lever described the entire case as a public scandal’ and said he was breaking with the recommended sentencing guidelines to jail Mallu.
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