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When your food-delivery company’s business has been a little slow, you could try launching a brand awareness campaign. Or you could think outside the box and have your employees crash into more than 100 cars in order to collect insurance money.
The CEO of a South Korea food-delivery company decided to try the second tactic, according to a report by The Korea Herald. He and 10 of his employees have been arrested on charges of deliberately causing more than 100 accidents since 2016 in the city of Busan in order to collect on fraudulent insurance claims.
Dashcam videos showed deliverymen for the unnamed company deliberately crashing their motorcycles into other vehicles, The Korea Herald reported. Thirty-seven of the company’s deliverymen have been booked without physical detention for suspected involvement in the scheme.
Employees told authorities that the 28-year-old CEO of the company had instructed them to “cause accidents (on purpose) to bring in some cash flow” after the company saw a severe drop in sales.
One employee has been accused of causing about 40 accidents. When the insurance company paid the employee’s claim, the CEO allegedly took 30% of the money, The Korea Herald reported.
The scam allegedly raked in about US$428,000 from six different insurers.
