Daejeon Metropolitan Police Bureau has recently filed charges against a sophisticated insurance fraud ring that orchestrated staged road accidents to claim high-value vehicle insurance payouts. According to official reports, the syndicate deliberately targeted imported luxury cars, manipulating circumstances to maximise insurance compensation.
Investigations revealed that a total of eight suspects, including the alleged ringleader, have been formally handed over to the prosecution. All face charges under the Special Act on Insurance Fraud Prevention. Police confirmed that the ringleader is a former insurance company employee, who also operated a car repair shop functioning unofficially as an insurance agency.
The scheme reportedly spanned from September 2019 to May 2024, during which the group staged five major accidents. Three insurance companies suffered a combined financial loss of approximately ₩3 billion (around USD 204,400).
According to investigators, the ringleader would acquire damaged high-value vehicles at auctions, often after declaring them total losses. The vehicles were then partially repaired externally before his associates staged collisions on public roads. The entire operation was spread across multiple regions, including Daejeon, South Chungcheong, and Gyeonggi provinces. All proceeds from the fraud were reportedly used for the suspects’ personal expenses. Notably, none of the members had prior convictions related to traffic or insurance fraud.
Vehicles implicated in the scheme included prestigious imported models such as BMW, Maserati, Tesla, as well as recently popular camper vans.
| Category | Details |
|---|---|
| Number of suspects | 8 |
| Ringleader | Former insurance company employee |
| Number of staged accidents | 5 (2019–2024) |
| Affected insurance companies | 3 |
| Total insurance claims | ₩3 billion (~USD 204,400) |
| Vehicles used | BMW, Maserati, Tesla, Camper van |
| Notable incident | Sept 2024: BMW & Camper van collision; ₩120 million insurance claim; serious injuries |
One particularly severe incident occurred in September 2024, when a BMW and a camper van collided in a staged accident. Both vehicles were extensively damaged, and the occupants suffered serious injuries, requiring hospitalisation.
A spokesperson for Daejeon Police stated, “This case represents a meticulously planned example of traffic accident insurance fraud executed by a former insurance employee. We are committed to enforcing the law rigorously to shield the public from the financial and social burden of such fraudulent schemes.”
Police investigations were initiated after a suspicious activity report from an insurance company. All suspects have now been formally charged and either detained or sent to the prosecution for further legal proceedings.