FAKE BURGLARIES.

Auckland Star, Volume LXVI, Issue 158, 6 July 1935, Page 18

FAKE BURGLARIES.

RACKET IN ENGLAND.

INSURANCE COMPANIES VICTIMISED. LONDON, May 27. Big insurance companies throughout Britain arc co-operating with Scotland Yard in an effort to trap the ringleaders of a widespread fake burglary racket which is costing them over £1,000,000 a yetir. The intelligence branch of Lloyd's ha;? been after this gang for some time, but they have now discovered instead of a single organisation, as in the case of the famous Harris (ire conspiracy, there is at least a dozen gangs that specialise in arranging fake robberies. Last -week a confei-encc was held at which Scotland Yard ofiicials and prominent insurance brokers were present, and while for obvious reasons the result of the conference was not made public, it has been learned that 150 private detectives employed by insurance companies, and who have a widespread knowledge of the fake insurance claims, .were placed at the disposal of Scotland Yard. This little known group of insurance sleuths can make inquiries, and adopt methods of obtaining evidence, which are barred to the police. When this lias been done, the police will step in and do the cleaning up. The fake burglary racket is being carried on by gangs who are experts at judging the value of funs, silk, cloth, cigars and cigarettes. They know the vintage of a bottle of wine, and the value of a diamond. The very boldness and simplicity of their methods make detection almost impossible. They open a shop with a perfectly legitimate stock of goods—say, furs or expensive gowns. Other members of the gang, established in similar shops in other towns, "buy" goods from the first shop. These are debited to them in the books. They even pay by cheque, so that the passbooks and counterfoils can be produced to show that such sales have really taken place. Thus money for these purchases is actually paid over. But it also remains within the control of the gang to be used later for a similar purpose. All these "sales," therefore, appealvto be perfectly genuine. Moreover, the books are kept in such •scrupulous order that it is impossible for the cleverest auditor to discover anything amiss with them. A large insurance policy is taken out on the stock. After a few months, when confidence has been established with the company, there is a "burglary." The insurance inspector finds that the premises have definitely been entered forcibly and that all the stock has gone. There is no clue to indicate that a burglary has been arranged. Thus he can only return to the insurance company and report the obvious . facts of the case. The company may be quite certain that the affair is a fraud, but it is powerless to act. It is a costly matter to bring a charge of fraud against a business man. Moreover, unices a complete chain of evidence can be established, the action is more than likely to fail, leaving the company to face not only heavy damages, but also the effects of adverse publicity upon its future business. To all appearances, the goods have been removed from the premises during the night. Actually, however, the gaii? would laugh at a procedure as breaking into its own premises by night and taking away a van load of stock. Instead, the goods are loaded into a van outside the shop and driven away in broad daylight. The carrying of goods into a van outside a shop is a common enough sight, and is hardly likely to arouse suspicion. If watching police or an insurance spy feels that something wrong-is- going on, lie can do nothing about it. The gang can produce there and, thep correct bills showing that the goods have been ordered, and that they are. merely, on their way for delivery. But the gang takes every precaution to ensure that such a challenge shall not be made. They nearly alwpys rent premises wTiich have their own yard at .the back, in which goods can be loaded and unloaded without attracting even the casual attention of the passer-by. The goods are driven to another town to a shop that is also in the "ring." Then, a day or two later, a mysterious "burglary" is found to have occurred at the shop from which the goods have been removed. These goods may be sold quits openly and honestly in some other part of England, or they may he insured again, with another company, and the fraud repeated exactly as before.