Hong Kong police arrest 17 more over HK$137 million ‘crash-for-cash’ scam

Hong Kong police have arrested an additional 17 individuals connected to a suspected "crash-for-cash" scam syndicate, following an investigation into 669 suspicious insurance claims worth over HK$137 million (US$17.4 million). Among the newly arrested suspects, one person is accused of filing 12 compensation claims totaling nearly HK$3.64 million. The 17 individuals, ranging in age from 27 to 49, were detained between September 9 and October 7 on suspicion of fraud, raising the total number of arrests to 55.

These new arrests are linked to 63 civil compensation claims arising from traffic accidents, amounting to HK$25 million. During the operation, officers seized various documents and mobile phones. The Hong Kong police initiated their investigation into what they believe to be a new form of "crash-for-cash" scheme after receiving reports from insurance companies, related organizations, and the public since January regarding fraudulent behavior in traffic accident compensation claims. Preliminary investigations have revealed that 461 of the cases are connected to a single law firm.

Drivers involved in traffic accidents reported being approached for substantial compensation demands long after collisions. Some claimed that multiple cases involved the same law firm and doctor, suggesting an organized operation. Between February and the present, police have conducted four enforcement operations, resulting in the arrest of a total of 55 people.

Three of those arrested have been charged with offenses including fraud, attempted fraud, and perverting the course of justice, while the remaining 52 suspects have been released on bail, required to report back to police between mid-month and mid-November.

It is expected that police will continue to pursue action against suspected "crash-for-cash" fraud syndicates. Among those previously arrested, a 37-year-old driver and his 38-year-old wife, a registered nurse, were charged with 20 offenses, including fraud and perverting the course of justice. The couple failed to appear in court when mentioned on June 25, leading the court to issue arrest warrants.