Police say that old-fashioned detective work allowed them to smash Cumbria’s biggest ever insurance fraud.

The key criminals implicated in the “cash for crash” scam – which operated across the county over four years – were initially able to operate undetected because the scam’s 48-year-old mastermind, career criminal Mark McCracken, hid behind fake identities.

The fraud was worth a staggering £600,000.

Suspicions were first raised as police investigated drugs and money laundering offences linked to 25-year-old Mark McCracken junior.

That prompted police to begin investigating a series of 27 suspicious car crashes – and so began the process of building the case against Mark McCracken senior, a 48-year-old career criminal whose record already included a substantial fraud.

The father-of-eight had constructed and operated an elaborate, multi-layered fraud that was ultimately to land him and 34 of his criminal associates in the dock.

As McCracken began his seven-year jail sentence, the senior detective who oversaw the investigation spoke of how “good old fashioned” police work led to a complex investigation that left the fraudster with no option but to admit his guilt.

McCracken was to plead guilty to 13 insurance frauds and one offence of possessing fake identity documents with improper intent.

Detective Chief Inspector Dave Stalker said: “Detectives became suspicious about the activities of McCracken junior’s father and decided to take a closer look. It was good detective work.

“There were concerns around a number of insurance claims and as a consequence of that a significant amount of resources was put in to investigating what can only be described as a wholesale and industrial scale insurance fraud.

hidey hole

“As a result of a detailed financial investigation it became apparent that McCracken [senior] was at the centre of this.”

A key moment in the investigation came when police raided McCracken’s childhood home at Brindlefield, Wigton, and found a “hidey hole” containing documents for 10 sets of fake identities – complete with photos.

All 10 characters – each complete with bank accounts and id documents – were, in fact, Mark McCracken, and all were linked to his fraud.

The scale of the investigation – involving 27 suspicious crashes, dozens of bogus insurance claims, and a paper trail that led back to an auction company where McCracken bought cars under a false identity – meant it took years to complete.

Officers uncovered how McCracken would buy cars with high mileages at low prices, but by the time they were crashed, that mileage would be dramatically reduced – in some cases by as much as 200,000 miles. Thus when the insurance claim went in, McCracken was able to claim thousands of pounds more than he paid for the cars.

As well as following a complex paper trail – and confirming that many of the individuals involved in crashes were fictitious – police conducted covert surveillance, watching McCracken with his associates.

A specialist vehicle examiner also showed conclusively that the alleged crashes could not have happened as the claimants suggested.

In reality most were damaged with hammers, or deliberately driven into bollards.

But the killer blow to any defence McCracken might have mounted came when police discovered his stash of bogus identity papers.

At the sentencing hearing, Judge Peter Davies told McCracken – who claimed to be providing “a service” to people who wanted rid of old cars – that he had both recruited others and exploited them for his own gain.

DCI Stalker added: “Let’s not forget that McCracken is a career criminal, who has a criminal history going back years. He’s a manipulator of people, who drew a lot of people into his web of deceit.”

The investigation was a joint operation operation between Cumbria Police, the Crown Prosecution Service (CPS) and the Insurance Fraud Bureau. Its success means that all but one of the 35 people involved have now been brought to justice.

The officer added: “Not only has McCracken gone to great lengths to launder money and commit serial fraud, his confidence in his own criminality grew to the extent he was claiming collisions occurred on the same day he opened insurance contracts.

“I’d like to thank the detectives that have spent a great number of hours in order to bring these people to justice. I would also like to thank the CPS and the IFB for their assistance and support during the investigation.

“This should serve as a warning to others thinking of doing similar that there are serious consequences to making false insurance claims. Crash-for-cash scams will be investigated and those involved could end up with a criminal conviction. In addition, we will seek to remove assets from those we identify as having profited.”

Ben Fletcher, director of the Insurance Fraud Bureau (IFB), added: “The fraudsters, driven by greed, used extreme methods such as manipulating a vehicle’s mileage in an attempt to exploit the industry, and ultimately honest premium-paying motorists.

“At the IFB we are committed to working with law enforcement agencies, such as Cumbria Police, to take the fight to the fraudster and we urge the public to also fight back by reporting what they know to the IFB’s Cheatline.”

Nine people were jailed for nearly 16 years at the conclusion of the sentencing hearing, while a further 22 were given suspended jail terms. Four defendants – including a serving soldier – were given community sentences.

CRAMMED

Experts point out that honest motorists pay the price for insurance fraud. Last year, the industry lost £835m as a result of 67,000 fraudulent claims that were detected. Undetected fraudulent claims are thought to have cost the industry £2 billion.

There were so many defendants crammed into Carlisle Crown Court for the sentencing hearing last week that they and their lawyers had to be accommodated in two courts.

Judge Peter Davies praised police, lawyers and court staff for their efficient handling of the case, which took three days to complete. He handed down nine immediate jail terms, 22 suspended jail sentences, and three community sentences.

The only person yet to be sentenced for his part in the fraud is Peter Farish, 44, of Cumwhinton Drive, Parkland Village, who owns used car company Castleway Motors, in Church Street, Carlisle. He was unable to be in court last Friday when his 34 co-defendants were sentenced.

McCracken’s 25-year-old son, also called Mark, was jailed for six years in 2014 for leading the Carlisle end of the money laundering operation.