Key facts
- Hong Kong police arrested 17 more people linked to a crash-for-cash scam.
- The scam syndicate is suspected of filing 669 claims totaling over HK$137 million.
- The arrested individuals range in age from 27 to 49.
- The arrests took place between September 9 and October 7.
- The total number of arrests in the investigation has reached 20.
- A law firm and medical clinics are suspected of colluding in the fraud.
Hong Kong police have arrested 17 more individuals in connection with a suspected "crash-for-cash" scam syndicate, as authorities investigate 669 suspicious claims totaling over HK$137 million (US$17.4 million). The arrests, which occurred between September 9 and October 7, bring the total number of people detained in the widening probe to 20.
Among the latest arrestees is an insurance claimant accused of filing 12 compensation claims worth more than HK$3 million. The suspects range in age from 27 to 49.
Previous reports indicated that police had received clusters of suspicious claims from late January, with authorities logging 430 reports amounting to HK$160 million. The Hong Kong Federation of Insurers and individual insurers referred many cases, with about 70% linked to the same law firm. In earlier operations, four people were arrested, including a couple accused of repeated claims and two doctors. Officers searched the implicated law firm, seizing files and uncovering alleged use of bogus paperwork.
Further arrests included staff at the firm on suspicion of abetting fraudulent insurance claims. A taxi driver and his nurse wife were believed to be behind 22 suspect claims over four to five years, alleging injuries after low-impact collisions. The highest single claim exceeded HK$300,000. Investigators suspect collusion with medical clinics to provide false paperwork.
Lo Oi-kin, acting superintendent of the Commercial Crime Bureau, stated that the 11 individuals arrested in a more recent operation included engineers, real estate agents, and sports coaches, all acting as claimants and using similar tactics, including fraudulent documents. The couple arrested earlier faced charges including deception and conspiracy to defraud, and perverting the course of justice.