Police arrest firm's director over 'crash-for-cash' scam

Police today held a company director who allegedly raked in £200 million a year in a "crash-for-cash" scam involving top-of-the-range cars.

Detectives arrested the 23-year-old at a flat in Paddington today. Officers were searching for his partner at addresses in Leyton, Stratford and Ilford.

Police also seized 13 cars including eight Mercedes, a Lexus and a Range Rover, from a warehouse in Tottenham.

The men ran a car leasing firm and a number of accident management firms, which they allegedly used to submit claims for bogus "accidents" involving their expensive cars. The costs even included a courtesy car - from their own stock of vehicles.

Detectives believe the pair netted up to £50,000 per claim.

Police have arrested 25 people who gave their own details to substantiate the bogus claims.