Family's car claim scam is pot-holed by Town Hall

27 September 2008

Mike Brooke

INVESTIGATORS have uncovered a ‘pot hole’ scam in London’s East End which could have cost council taxpayers thousands of pounds.

The claims were not only massively inflated—all were from the same family, Town Hall officials have revealed.

Evidence of fake insurance claims were made to Tower Hamlets council from several ‘car owners’ for damage to vehicles caused by pot holes in the roads, all submitted under different names, before it was realised they were from one family.

“A small number of people try to exploit the system,” said council cabinet member Josh Peck.

“We always check insurance applications for any suggestion of fraud. If it’s there, we’ll find it.”

The family has been given a caution for attempted fraud, the Town Hall revealed.

“We are dealing with public money—so we need to be particularly rigorous in making sure that it’s well spent,” added Cllr Peck.

“This should be a warning for anyone trying to abuse the system that we’ll be doing everything we can to catch them out!”

The scam was uncovered by suspicious Town Hall fraud officers working with police and the authority’s own financial investigation unit.