Main Perpetrator of Insurance Fraud Gang Arrested for Embezzling 630 Million Won through Intentional Traffic Accidents

Civil Remedies for Affected Drivers

The prosecution has arrested and indicted the ringleader of an insurance fraud gang that deliberately caused traffic accidents and embezzled insurance money in Seoul, Hanam, Yongin, Wonju, and other areas.

On the 7th, the Criminal Division 5 of the Seoul Eastern District Prosecutors' Office (Chief Prosecutor Kim Haekyung) announced that on the 28th of last month, they arrested and indicted one ringleader and indicted nine major accomplices without detention.

From May to December of last year, they intentionally rear-ended vehicles that were changing lanes, causing traffic accidents, and deceived insurance companies to embezzle a total of 630 million won in insurance money over 80 instances. They recruited accomplices to play roles such as drivers and passengers through job advertisement sites and practiced the crimes while staying at motels.

During the supplementary investigation after receiving the case from the police, the prosecution informed all innocent drivers who were mistakenly accused as perpetrators of the traffic accidents that it was an insurance fraud case. It was confirmed that the drivers suffered up to five weeks of injury and about 10 million won worth of vehicle damage, but instead of compensation, they experienced economic damages such as increased insurance premiums.

The prosecution notified not only the insurance companies but also the innocent drivers who suffered traffic accident damages of the case disposition details and took measures to enable them to receive civil remedies such as claims for medical expenses, repair costs, and refunds of increased insurance premiums.