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Bogus accidents earn repair shop big cash

THE owner of an auto repair shop was sentenced to three years in prison with a three-year probation for defrauding more than 200,000 yuan (US$30,030) from insurance companies by making false claims for his clients, judges said today.

The Changning District People's Court also imposed a 60,000 yuan fine on his shop.

The man surnamed Liu hit the idea of "making fortunes" in July 2008. One of his friends, a traffic police, offered him some blank confirmation forms for traffic accidents. His police friend will be dealt with in a separate case.

Liu filled those forms with false accidents to help clients who were not qualified for insurance paybacks to get cash compensation. The clients then paid him commissions, the court heard.

The illegal practice brought many clients to Liu's repair shop.

Between July 2008 and June 2009, Liu helped clients make 90 false claims to 11 insurance companies for compensations totaling about 240,000 yuan. The insurance companies had paid more than 200,000 yuan for 71 accidents before Liu was caught.

All the defrauded money has been returned to the victim companies, the court said.


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