Allianz secures factory fire fraud conviction

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A company director has admitted starting a fire at his printer supply factory in Dundee, in an attempt to gain £2 million compensation from its insurer, Allianz.

The fire occurred on 11 February 2018 in a room storing ink cartridges. Two companies located in the building, Fazteck and Chohan, which were managed by the same family, filed claims for losses totalling just over £2 million. However, investigations established the cause of the damage as arson.

A director at both Fazteck and Chohan pleaded guilty to willful fire raising and attempted fraud as his case was heard recently at the Dundee Sheriff Court.

Besides establishing naked flames had started the blaze, investigations found CCTV footage from the time of the fire showing the director emerging from smoke coming out of the building

A search of the Fazteck premises also recovered policy documents where information on claims payouts had been highlighted.

Allianz says sentencing in the case has been deferred.

James Burge, head of counter fraud at Allianz Commercial, commented: “Thankfully no one was hurt in this case but I cannot stress enough how dangerous fire can be.”

We are also grateful that the investigations into this arson quickly established the facts, thanks to efficient collaboration between all involved, including loss adjusters and forensic engineers, to assist the police. We hope this case works as a deterrent for other would-be fraudsters.”

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Mark Dugdale is the editor of Claims Media. Mark welcomes articles, letters or feedback from readers and can be reached via mark.dugdale@barkerbrooks.co.uk