Pair spent scam cash on house in US, court told
The prosecution claimed Exeter couple Linda and Alan Drake, of Arena Park, Beacon Heath, Exeter, treated themselves to holidays in the United States, including buying a house and car in Florida, with funds from fraud.
Alan Drake, 41, his wife, 45, her 23-year-old daughter Claire Williams, also of Arena Park, and Mark Addison, of Chawleigh, near Chulmleigh, are on trial.
It is claimed they plotted together in an insurance scam with more than £400,000 being paid into bank accounts.
The prosecution say Linda Drake and Nicola Pughe, then known by the surname Curry, from Hamlin Gardens, Whipton, helped run the fraud from a Norwich Union call centre in Pynes Hill, Exeter. The jury has been told that Pughe, 42, has already admitted conspiracy to defraud.
The alleged scam involved exaggerating insurance claims for building repairs done by Alan Drake, or making up false ones in 2007.
The losers included Norwich Union, now known as Aviva, and other insurance firms. The total amount paid into bank accounts was £434,319, although some of this was for genuine building work done by Mr Drake.
Prosecutor Jonathan Barnes continued telling the jury about his case, on the second day of the trial.
"Mr and Mrs Drake were the ringleaders and by far the most substantial beneficiaries," he said, adding their bank accounts showed "good living" during 2007 and 2008, before their arrest.
More than £382,000 was paid into their accounts from February to August 2007, the time period of the charges. They spent money on cars, including a £12,000 Land Rover Discovery, travel to the United States, a caravan and motorbike.
"Large sums were transferred to (banks in) the United States," he said, adding they put down a £46,000 deposit on a house in Florida and bought £6,600 car there.
Mr Barnes claimed that Pughe also played a "central role," although she did not benefit as much as the Drakes.
In her role as an insurance claims handler, she paid large amounts of money into her teenage daughter Rebecca Curry's bank account, allegedly for her own benefit.
The prosecution have dropped charges against the teenager, who is now 18.
Mr Barnes also explained the alleged roles of Williams and Addison.
He said Mrs Drake and Pughe made insurance payments of £19,280 into the bank account of Williams, for fictional building work.
"Claire Williams was not out there with a pick and shovel," said Mr Barnes. "The only explanation is she was made a beneficiary of the fraud."
He said Addison is Rebecca Curry's boyfriend and was a labourer for Alan Drake. Pughe made insurance payments totalling £14,018 into Addison's account.
"A man who originally had twelve pence in his bank account suddenly received substantial sums," said the prosecutor. "He knew perfectly well what was going on."
Linda and Alan Drake have pleaded not guilty to two charges of conspiracy to defraud. Williams has denied one similar offence. Addison has denied the same offence and one of concealing the proceeds of crime. The trial, which is expected to last three weeks, continues.
Alan Drake
