The boss of a Bolton based legal claims firm who worked with a team of conmen to fraudulently make thousands of pounds in staged “crash for cash” accidents has appeared in court. Asif Mallu pleaded guilty to conspiracy to defraud and was told by the judge he faces jail.
Mr Mallu admitted conspiring with more than ten bogus claimants and was responsible for over ninety staged car crashes throughout the North West. Mr Mallu ran the Bolton based company 24/7 Direct Claims, which earned large fees for referring people who were involved in accidents to solicitors. The court heard that he created false invoices to support the bogus claim for vehicle recovery, storage and repair after a number of crashes. He also represented fraudulent claimants who were making personal injury claims. If he had not been caught he would have conned tens of thousands of pounds from insurance companies. He has just started a two-week trial, but changed his plea to guilty just before the hearing started.
Judge Bernard Lever told Mallu: “You have pleaded guilty to this charge, and people who plead guilty always get dealt with more leniently than people who try to lie their way to get out of things. But the fact you have been granted bail gives no indication as to the sentence you will receive.”
The sentencing of Mallu will mark the end of four years complex work by a specialist team of Greater Manchester Police road crime investigators. The court will also hear how much money was made from the fraud. Bolton has been named in reports by numerous organisations as one of the worst places in the United Kingdom for “crash for cash” fraud. It is estimated that motoring insurance fraud adds £44 to every driver’s motor insurance quote and costs £350 million a year nationally.