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Hong Kong police have continued their investigation into a growing “crash-for-cash” fraud scheme, arresting 16 additional individuals linked to a series of false claims associated with traffic accidents.
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Among the newly arrested are three legal assistants from a law firm involved in the case. This brings the total number of suspects detained to 20, as investigators uncover more fraudulent claims that have defrauded insurance companies and drivers alike.
Earlier, the police arrested four individuals for suspected conspiracy to defraud, and yesterday, 16 more suspects, aged between 28 and 65, were arrested.
These suspects are believed to be involved in 11 separate claims, amounting to over HK$3.6 million.
The police operation targeted a law firm, and officers seized a significant amount of documents as part of their investigation. Among those arrested were not only legal assistants but also individuals working in various sectors such as information technology, engineering, property management, tutoring, beauty services, transportation, and electrical work.
Senior Superintendent of the Commercial Crime Bureau, Fung Pui-kei, reported that more than 430 related cases have been identified, with a total value exceeding HK$106 million. Over 280 of these claims, accounting for nearly 70 percent of the total, are connected to the same law firm.
During a recent raid on the firm, police recovered a substantial amount of evidence, though the firm has requested a court order invoking Legal Professional Privilege (LPP) to withhold some documents.
Fung stated that the police are currently discussing with the Department of Justice how to address the LPP issue.
Upon reviewing the fraudulent claims, investigators discovered that some perpetrators used fabricated documents to inflate their claims, making false statements about income loss and exaggerating injuries. In addition, fraudsters reportedly manipulated repair bills, medical receipts, and even fabricated illness reports to defraud insurance companies.
One case involved a suspect claiming to have lost a substantial amount of income due to a car accident, but upon investigation, it was revealed that he had no fixed salary and had exaggerated his earnings.
Another arrest involved an individual from the IT sector who falsely claimed to have been injured in an accident, although he continued working and receiving a salary of HK$60,000 per month. He inflated his income loss claim to over HK$100,000.
Police also uncovered cases where individuals submitted forged medical certificates and repair invoices to enhance their claims. In one instance, a suspect attempted to claim more than HK$10,000 for fish maw purchases, but a check with the pharmacy confirmed the receipts were fraudulent.
Fung said police have so far arrested 20 individuals, including doctors, legal assistants, and various claimants.
The investigation is ongoing, and investigators are continuing to examine a large volume of documents and evidence in preparation for further actions, the added.
Acting Senior Superintendent Fanny Kung Hing-fun emphasized that the scale of this "crash-for-cash" fraud is significant, with the total amount involved being exceptionally high.
She assured the public that the police would continue their investigation thoroughly, with additional arrests expected as the case develops.
