The raids were amid 20 carried out across the nation at businesses accused of fraudulently charging insurers for leasing automobiles to motorists whilst theirs have been being repaired.
6teen people had been arrested across the Uk in raids carried out by Operation Bugle detectives.
Individuals arrested are suspected of offences which includes false representation, conspiracy to defraud, money laundering and forgery. The scams are considered to have expense insurers hundreds of thousands of lbs.
Police feel retain the services of company staff exaggerated the length of time a vehicle was on loan for and informed insurers far more pricey models had been provided out to get greater payments.
In some circumstances, claims had been allegedly manufactured for employ automobiles when none have been given out at all, in what is described as “phantom hire”.
On other occasions, firms mentioned they leased the exact same courtesy car to different motorists at the identical time but place in separate claims for each and every.
Between individuals arrested yesterday were 4 members of personnel and a single director at a business in Leytonstone. The company is accused of defrauding insurers out of £117,000.
Detectives and help group officers searched the residence with a funds sniffer dog, seizing files and pc data.
A additional 4 arrests were created in Southgate and Barnet.
DCI Dave Wood, head of the insurance coverage fraud division, stated: “While insurers are the criminals’ intended victims, innocent motorists eventually pay out the value in terms of the impact of fraud on the price of premiums.”
Louise Ellman MP, of the Commons Transport Select Committee, applauded the police operation, saying the crew had carried out “vital work” in rooting out insurance coverage fraud.