A fraudster hid behind multiple fake identities so he could set himself up as the “chief executive” of a £600,000 insurance fraud.

Carlisle Crown Court heard that 48-year-old Mark McCracken – who has a long criminal record – operated his “cash for crash” insurance scam on an industrial scale, helped by 34 criminal associates.

It is the biggest insurance fraud ever prosecuted in Cumbria.

As those convicted of being involved arrived at the city's Earl Street Crown Court to be sentenced, they were so numerous they had to be accommodated in two courts.

Many defendants and lawyers had to watch the main hearing – due to last three days - over a live video link from the second court. The convicted include four Carlisle car dealers and garage owners, convicted of fraud after a trial.

Opening the case, prosecuting barrister Tim Evans said McCracken, from Sandsfield Park, Carlisle, ran the scam over four years.It was based on numerous imaginary car crashes.

These allowed McCracken and his co-defendants to lodge bogus claims for made-up personal injuries, fabricated car hire-charges, and written-off off cars, with payouts bumped up because mileages were vastly reduced.

Mr Evans outlined how McCracken worked with four Carlisle car dealers and garage – Peter Farish, 44, Duncan Pape, 53, and Wigton man Stuart Bell, 36, and 43-year-old Richard Miller, whose business is in Blencogo.

Their offences – which they all denied – were to do with fake car hire and storage charges.

Describing McCracken's role, Mr Evans said: "This was truly an industrial level of fraud. It was organised and run like a business by Mark McCracken, with all of these defendants as dishonest workers in that business.

“McCracken sat at the top, as chief executive officer."McCracken created false identities, each with relevant paperwork - including security question answers scribbled on post-it notes, all of it stored safely in a "hidey hole" at his family's home in Brindlefield, Wigton.The court heard some of those involved would manufacture crash damage to the vehicles, most of them old and with high mileage. Cars were smashed with hammers, or deliberately reversed into bollards.Yet for none of the crashes, said Mr Evans, were the emergency services called. Cheques would be issued to the false claimants, and then paid into bank accounts that McCracken had opened in their name.

The barrister spelled out the sums of money generated.For the 13 false crashes investigated, insurance firms paid out £239,599 - more than £87,000 to imaginary drivers and passengers; and nearly £54,000 of “profit” for cars whose mileages had been dramatically reduced.

After one crash, in 2010, the BMW McCracken was in, bought for £4,525, had 102,000 miles wiped off its clock, significantly boosting its write-off value. “He was fully hands on,” said Mr Evans, describing how McCracken refused to delegate.

“He did the work of running the operation himself, kept the false ID documents himself, and made phone calls to insurance companies himself, on one occasion putting on a woman's voice, pretending to be the non-existent wife of a non-existent claimant.”

The insurance firms involved lost just onder £307,000, while the total value of the fraud was £602,438, said Mr Evans.

McCracken's criminal record includes 61 offences, including convictions for theft and fraud - one worth £94,000.

Simon Gurney, for McCracken, who admitted 14 offences, said his client had provided a “service” to willing people, some of who wanted rid of their cars. “The defendant didn't put people under pressure,” said the barrister.

A father of eight children – three with his current partner – McCracken wanted to put his offending behind him and put his talents to a legitimate use. “He's thoroughly ashamed of his criminal past,” added Mr Gurney.

Mark Styles, for Stuart Bell, of Deer Park, Wigton, who still denies wrongdoing, said his client was a hard-working man and pivotal in his family garage business, S&A Bell.

Referring to a possible jail sentence, Mr Styles added: “He fears very much that without him the company will fold.”

Greg Hoare, for Duncan Pape, of Wigton Road, who runs Tekno Painting on the city's Willowholme Industrial Estate, said he also maintains his innocence. He fears his business would not survive if he goes to jail.

His business having bounced back from the two Carlisle floods, Mr Pape was now waiting for a lung transplant, said Mr Hoare.

Amos Waldman, for Richard Miller, of Springfields, Wigton, who has the R Miller Bodyworks at Blencogo, said he too still denies any offending; and he also fears losing his business if he is jailed.

Roy Headlam, for 27-year-old Stuart Wise, of Friars Garth, Abbeytown, said he got involved because he was “strapped for cash.” A man of hitherto good character, he had worked ever since leaving school at 15.

John Smith, for Dominic Scott, 32, of Edward Street, Carlisle, said his client had not even followed up his bogus insurance claim.

Serving soldier Charmaine Cochrane, 30, from Colchester, was told she will be given a community sentence with 60 hours of unpaid work – a sentence that will not end her Army career. Peter Farish, owner of Castleway Motors, in Church Street, Carlisle was unable to be in court yesterday.

Barristers will resume mitigating for the remaining 27 defendants today.

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