Suspects in €200,000 insurance scam released by gardaí

Five people suspected of being part of a gang involved in a lucrative insurance fraud have been released without charge by gardaí.

But they face the likelihood of having a file forwarded to the DPP on their activities when gardaí finally wrap up the investigation.

The five are among 17 people arrested since early February when Operation Nascar commenced.

The three men and two women were arrested at locations in Mallow and East Cork by detectives.

Gardaí believe up to €200,000 has been fraudulently claimed from insurance companies after the gang staged accidents and then sought personal injury compensation.

Detectives believe the gang operated from Cork.

Payments ranging from €10,000 to €15,000 have been secured by people who gardaí say have substantial knowledge of the insurance claims process.

It is believed the gang members deliberately contact gardaí after the crashes so they have a record of the incident. However, they don’t report any injuries at the time which means gardaí are not obliged to follow up the incidents.

Senior garda sources explained so-called victims later visit doctors complaining of delayed stiffness or soreness. They then approach solicitors who file a claim on their behalf and, in most cases, insurance companies settle swiftly to avoid extra court cases.