BOGUS FIRE CLAIMS.

Ashburton Guardian, Volume 53, Issue 273, 30 August 1933, Page 5

BOGUS FIRE CLAIMS.

SECRET INVESTIGATION.

ANOTHER CASE LIKELY

(United Press Association—Copyright) LONDON, August 29.

In consequence of the recent fire conspiracy case, the London insurance companies -have appointed a secret investigation committee from their senior officials to form an unofficial criminal investigation department of the insurance woirld for the purpose of stopping bogus claims. 'Tile "Daily Herald" learns that clue's discovered during the recent case led detectives to suspect the existence of several more fire-raising organisations. If the inquiry results in a prosecution the charge sheet will he one of the most sensational seen in an English court, hut the next step is likely to he the launching of a case against a group of defendants outside London. Meanwhile the fire-raisers are frightened and it is practically certain that deliberate burning of premises has ceased for the time being.

In the conspiracy referred to, fourteen persons were convicted and sentenced to an aggregate of 40 years' imprisonment alter a 34 days' trial, the longest in the history of the Old Bailey. The capture of the fire-raising gang was the result of several years ox investigation by Mr William Crocker, a solicitor and specialist in insurance law, employed by Lloyd's, underwriters and leading fire insurance companies. He discovered that the sys tern of the gang was as follows: — A dummy" business was created in the name of one of the gang. It was stocked with , inflammable material and then a grossly excessive insurance policy was negotiated. The premises were subsequently set on fire by another member of the gang and an inflated claim, supported, if necessary, by forced invoices, was then presented. It is estimated that the case cost £IOO 000, which the insurance companies and Lloyd's paid, because they believe that they have been systematically deprived of £500,000 yeany by the fraudulent claims which the prosecution aimed to stamp out, The prosecution, when outlining trie several cases, alleged that Leopold Louis Harris, an assessor headed the organisation. He, with the other accused, started companies and financed businesses in London and other places He filled the premises with junk and effected insurances for grotesque sums and when fires occurred, presented inflated claims. In one instance the invoices were fabricated. , ~ The prosecution said that an Ita.ian named Capsoni, and his wife claimed to have started live fires. They weic not accused, but would be witnesses. Capsoni claimed to be deep m the organisation's plans and the prosecution was using him as "an instrument of iustice." They had paid him £o f week for six months, but relied on him only when his evidence was corroborated bv discoveries during the two years during which the investigations had been going on, : Mr Justice Humphreys, in his sum ming up, declared that Capsoni was the most despicable type of criminal carrying the name of blackmailer. 1 shall not be able to pass Oil him the sentence he richly deserves," he said, "while the lowest depths of infamy perhaps were reached when Capsoni s wretched wife was sent to do th" actual burning."