WINNIPEG – To mark the end of the year, Manitoba Public Insurance released a list of the top five frauds its investigators uncovered in 2013.
One of the top frauds involved a collision with a train where the man who was behind the wheel had been drinking, but told investigators his passenger, who died in the crash, had been driving.
A camera in the train eventually proved him wrong.
MPI’s special investigations unit probes around 3,000 claims each year, the insurer said.
Here are the other top frauds:
No. 2 ‘Partners in Crime’
After their vehicles collided with each other, two men opened collision claims with Manitoba Public Insurance. Each claimed he didn’t know the other driver. Both vehicles were high-end models and, due to extensive damage, they were written off.
Investigators discovered the two men were in fact business partners and friends. They had orchestrated a staged collision. They were later observed by law enforcement officials riding in the same vehicle during a business trip.
An independent collision analyst examined both vehicles and concluded only one of the vehicles was in motion at the time of the collision. His report also stated the Jaguar was the “bullet vehicle” and the 2007 BMW was the “target vehicle.”
Both men pleaded guilty to making a false statement and were fined $2,000 and $1,700, respectively. The combined savings to Manitoba Public Insurance premium payers was nearly $50,000, MPI estimated.
No. 3 ‘Story Didn’t Float’
A Winkler man was fined $2,500 after he was found guilty of trying to defraud Manitoba Public Insurance.
The 62-year-old claimed his 2007 Dodge Ram was stolen from outside his rural residence. The vehicle was recovered a day later, parked under a large water hose that was attached to the community water-fill station. The hose had been placed in the vehicle’s passenger compartment, filling it with water.
An investigation into the claim was opened.
Court heard from an expert witness who explained the vehicle was equipped with an approved immobilizer that had not been defeated. The judge didn’t believe vehicle owner’s story that someone had stolen his truck key.
No. 4 ‘Rolling into Jail’
A kingpin behind a massive and complex auto insurance fraud investigation ─ Project Rollback ─ was sent to jail for four years and ordered to pay $150,000 in restitution to Manitoba Public Insurance.
The Winnipeg man pleaded guilty to eight counts of fraud over $5,000 and commission of fraud for the benefit of a criminal organization. He had no prior record.
The fraudsters made phony “sales” to each other at inflated prices, insured the vehicles at the increased values and then staged a series of accidents and thefts in order to cash in. More than 30 accused were arrested in 2009.
“Project Rollback” Police began in 2005 after Manitoba Public Insurance investigators learned that dozens of used cars with high mileage were being purchased in Ontario, brought to Manitoba and altered to reflect greatly reduced odometer readings, which increased their value.
No. 5 ‘Wrong Address’
Despite living and owning a business in Kenora, a man decided to keep his Manitoba insurance because of the high cost of Ontario auto insurance ─ $12,000 to insure his car compared to $1,400 in Manitoba. His decision would prove even more costly.
The 22-year-old was operating his vehicle when it lost control and rolled near Kenora. The vehicle, valued at $24,000, was a total loss. He told his Manitoba Public Insurance adjuster that he lived in rural Manitoba. The SIU investigation confirmed the man was a resident of Kenora, owned a business and was paying income tax in Ontario. His claim was denied based on the overwhelming amount of evidence against him.
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