Hawks dismantle insurance fraud syndicate for fake death claims
Five suspects aged between 43 and 60 were arrested in Port Elizabeth last night, 28 January 2021, for defrauding four prominent insurance companies a total loss exceeding R280 000.00.
They were arrested by Hawks’ Serious Corruption Investigation team following an intense probe of a syndicate, that included an insurance broker, a doctor, a funeral parlour owner and employee, former police officer and a former reservist.
The syndicate signed up about seven insurance policies with different companies over the period between March 2014 and February 2015. When the waiting period had lapsed, they allegedly forwarded fraudulent death claims ranging from R10 000 to R50 000.
These fraudulent activities were uncovered by the forensic audit investigator, assigned by one of the prominent insurance companies. His suspicions were raised when he could not find the grave of the alleged deceased person on the first incident and when he visited the family he found that the former police reservist, who was fraudulently declared dead, was in fact alive.
A case of fraud was reported to the Hawks for further investigation that uncovered more fraudulent claims where the syndicate members alternated as beneficiaries and deceased persons.
The five suspects are expected to appear at the Port Elizabeth Magistrate’s Court today, 29 January 2021, facing multiple charges of fraud, theft and defeating the ends of justice. Three of the accomplices are still at large, whilst one passed away after a short illness.
The National Head of the Hawks, Lieutenant General Godfrey Lebeya, commended the team for the arrest and looks forward to seeing all those involved being brought before court.
