Operation Contract, Victoria Police - 2019 AB Investigation of the Year - Daniel Burke (middle), from award sponsor AdjusterCorp, presents the trophy to Det. Senior Constable Daniel Beard from Victoria Police

Operation Contract - Victoria Police, Vehicle Crime Squad
Team Members: Det. Sgt Michael Welsh, Det. Sgt. Matthew Graefe, Senior Sgt. Belinda Jones, Det Senior Const. Daniel Beard, Det Leading Senior Constable Brendan O'Mahoney

Operation Contract was an investigation undertaken by the Vehicle Crime Squad involving systematic organised crime relating to staged vehicle collisions, vehicle theft and finance fraud involving two co accused and many more in the automotive repair industry and Tow truck industry.

The initial two targets were a tow truck driver operator of panel beating business and the tow truck business owner who were believed to be involved in:

• Finance fraud
• Insurance fraud
• Theft of Motor Vehicle
• Extortion

In June 2017, 14 Search warrants were executed simultaneously across the Melbourne area utilising over 100 Victorian Police members including investigators, uniform and specialist units.

Warrants were executed at the following:
3 x Panel beating businesses
1 x rental car business
1 x Recovery agent business
9 x residential addresses

As a result of the search warrants over 5,000 items were seized including but not limited to;

• 14 luxury vehicles including Mercedes Benz C63's, Audi RS and a Maserati
• Stolen identities
• Documentation involved in major fraud

Further evidence indicated the involvement of Target 1 and Target 2 in fraudulent insurance claims. (Staged vehicle collisions)

From the evidence gained during the initial search warrants an extra 26 search warrants were executed including but not limited to;

• Banks
• Law Firms
• Recovery agents
• Panel beaters
• Auction houses

In total 65 offenders were arrested and interviewed and aver 150 statements were taken. Statements were taken from a variety of people including witnesses, offenders, panel beaters, loss assessors and business owners.

Extensive evidence was obtained supporting finance and insurance fraud including but notlimited to the following;

• Targets committing finance fraud on luxury vehicles using stolen identities and sophisticated fraudulent documents.
• Fraudulent obtained vehicles are on sold, re-registered to multiple fake businesses or used as third party vehicles in multiple insurance claims.
• Targets actively recruiting members of the community with no criminal history to use their vehicles in staged collisions. Members of the community were being recruited from car yards and panel beating businesses. Targets were also heavily recruiting people from the security industry.
• Targets were being supplied stolen identities including drivers licence, Medicare cards and passports which they then use as third parties involved insurance collisions. Targets paying co-offenders to recruit members of the community and provide stolen identifications.
• Third party vehicles are often used in multiple collisions with recycled damage.
• Targets have dummy vehicles which are bought from auctions in a damaged state. The dummy vehicle's damage is photographed and sent to the assessor with the actual vehicle not being damaged at all.
• Collusion prior to the alleged collision between targets, third parties and insured parties.
• Evidence provided by forensic examination experts revealing vehicle damage not consistent with collision descriptions and in some cases were able to download vehicle data to show the vehicle was actually in revers at the time of the collision.

As a result of Operation Contract 21 vehicles were seized with a combined total value of 1.8 million dollars, the most expensive being a 2011 Aston Martin Vera 11.

30 offenders were charged with fraud related offences and summonsed to the Magistrates Court. A further 7 offenders were charged with fraud, Perjury and theft offences and were summoned to
the Melbourne County Court. Their court matters are still outstanding. The two targets were charged with a combined total of 80 charges with fraud related charges valued at $444,927.15 and
attempted fraud related charges valued at $1,319,712.20. Their court matters are still outstanding.

To this date over $100,000 has been repaid to insurance companies by insured drivers involved in the fraud with more to come with court cases still outstanding. This Operation was made possible by close liaison between Vehicle Crime squad, the Insurance Fraud Bureau and numerous insurance companies and insurance company investigators. As a result of this investigation a sophisticated highly organised criminal network was dismantled, deterring other potential criminal syndicates attempting to gain illicit wealth in the same manner. The investigation also discovers a distinctive Modus Operandi for this type of offending. The investigation identified a lack of regulation in the industry and presented its findings to the Insurance Fraud Bureau and it's stakeholders. The findings of this investigation will assist law enforcement and insurance agencies in identifying fraud and prosecuting further offending.