Keoghs wins victory as private prosecution is brought against 21 fraudsters

A private prosecution has been brought against 21 defendants after a collision between a bus and a Nissan Micra.

It was alleged at the time that 19 bus passengers and the two people in the car had pre-planned the incident with the aim of making fraudulent insurance claims.

An investigation by Keoghs Intelligence revealed that a suspicious number of defendants knew each other. Yet, CCTV footage from the bus showed that they didn't speak to each other while on board.

Video footage showed several of the defendants were watching from the back of the bus, waiting for the bump to occur and then signaling to each other and jumping up holding their necks, implying they had been involved in a serious collision.

Such damning evidence left judge HHJ Belcher in no doubt of the defendants' guilt.

"The insurer is to be commended. I have no hesitation whatsoever in awarding the insurer the costs of bringing the prosecution," said Belcher.

A camera stationed on the rear of the bus also showed how the Nissan Micra struggled to keep pace with the bus before accelerating in order to hit the rear of the bus.

In judgment at Leeds Crown Court, 19 of the defendants received sentences ranging from 12 months through to 21 months. Two of the defendants have yet to be sentenced.

Keoghs also secured a conviction for dangerous driving, and the driver of the Nissan Micra received a three-year ban with three months added to his prison sentence. 

"This was a most unusual case, not only in terms of circumstances, but also given that we brought a private prosecution against 21 defendants," said Damian Ward, Keoghs director of fraud, technical policy & quality.

"It is testament to the tenacity of our Fraud and Intelligence teams and our fantastic relationship with prosecution counsel that this was successful, despite an initial refusal from the Magistrates Court to issue a 21-handed private prosecution.

"It was also satisfying to take a dangerous fraudster off the road with an additional driving ban. We hope this result sends out a clear message that insurers are willing to take whatever steps are necessary, including prosecution, to stop such fraudulent activity."

Judge Belcher also granted an order that the prosecuting insurer's costs should be paid from central funds.

"Service Insurance Company Limited is delighted that its collaboration with its trusted partners has resulted in the conviction of fraudsters," said Keith Newing, owner of Service Insurance Company Limited.

"All too often insurers are forced to pay claims even though there are serious suspicions of fraud which costs the industry and innocent policyholders in the longer run.

"This time the fraudsters did not get away with it and Service Insurance is hopeful that this landmark case may deter others from bringing fraudulent claims in the future."