Delivery Workers Mobilized in Staged Accidents... Insurance Fraud Ring Caught After Setting Restaurant on Fire
The head of a delivery agency and its affiliated delivery workers have been arrested by the police en masse on charges of conspiring to stage intentional traffic accidents over several years and even setting fire to a restaurant, defrauding insurance companies out of hundreds of millions of won.
The Jeonnam Provincial Police Agency has detained Mr. A (43), the operator of the delivery agency, and Mr. B (46), a manager, on charges of violating the Special Act on Prevention of Insurance Fraud, among other offenses, and apprehended a total of 17 people including accomplices.
Mr. A and others are accused of planning and staging a total of 21 intentional accidents between motorcycles and passenger cars in the Gwangju area from October 2019 to September 2024, prearranging roles as perpetrator and victim for each incident.
They are reported to have fabricated the circumstances of the accidents and exaggerated the extent of the damage, thereby illegally obtaining approximately 60 million won in insurance payouts.
In particular, it was revealed that Mr. A, the ringleader, personally set fire to a restaurant he operated and made a claim on the fire insurance, fraudulently obtaining an additional 100 million won.
The police have considered this a combined case of traffic accident insurance fraud and arson insurance fraud and have expanded their investigation. During the process, it was found that Mr. A exploited his position as the head of the delivery agency to involve affiliated workers in the crimes, systematically orchestrating the accidents and even managing the distribution of the insurance proceeds.
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An official from the Jeonnam Provincial Police Agency stated, "Insurance fraud is a representative crime that undermines trust in the insurance system and increases the burden of premiums for honest policyholders," adding, "We plan to strengthen cooperation with related organizations such as the Financial Supervisory Service and the National Health Insurance Service, and to continue rigorous investigations into organized and habitual insurance fraud."
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