Teacher arrested for R6?million death fraud

2013-02-25 00:00

A 44-YEAR-OLD teacher from Madadeni in Newcastle has been arrested by the Durban Commercial Crime Unit for insurance fraud totalling R6 million.

Police spokesperson Captain Thulani Zwane said police pounced on the teacher while he was on duty at a school in section four, Madadeni, on Thursday.

He will stand trial with four other accused who were arrested at the beginning of the month in connection with the fraud.

After the arrest of the four suspects, the owner of a funeral parlour (suspected of colluding with the suspects) was found dead with gunshot wounds in the Besters area near Ladysmith.

“The suspect was linked to a case of insurance fraud where R6 million was claimed from a major insurance company. Police investigations revealed that he took a funeral policy for the already deceased Themba Nene and claimed R15 000, eight months after paying the premiums,” said Zwane.

He said they have been investigating a fraudulent claim worth R3 million which was lodged and paid out in October 2012 and an additional claim of R3 million which has not yet paid out. He said claims were made against the insured life of Nene from the Mazizini area in Bergville.

Nene had died in 2011 and not in October 2012 as stated in the claim form submitted to the insurance company. “During the investigations, it transpired that the family had used the services of Mthumeni Funeral Service for the burial of their son and they could not register his death at the Department of Home Affairs because his identity document was missing.”

Police allege that in January this year, an employee from the funeral parlour visited the family and brought R15 000 and Nene’s ID book, saying that it had been misplaced but had been found. He said the money was compensation to them for the funeral parlour having misplaced the ID.

The employee will appear at the Durban commercial crime court today.

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