Italy mafia gang made millions from car crash insurance scam
ROME (REUTERS) - A mafia clan in southern Italy staged hundreds of fake car crashes every year to get millions of euros in insurance payouts to buy drugs and weapons, police said on Friday.
The insurance fraud was just one of the charges against 70 people sought for arrest in dawn raids by police on Friday in the Calabrian city of Lamezia Terme, near the "toe" of Italy.
"The insurance scam permitted the boss to manage his clan, to buy guns and drugs, and to pay his men," Mr Rodolfo Ruperti, the head of the police squad that carried out the investigation, told Reuters.
The mob had local insurers, doctors, lawyers and automotive body repairers on the payroll to pull off the fraud which earned the gang well over a million euros (US$1.7 million) a year, Mr Ruperti said. Police seized assets worth 1.2 million euros.