KUALA LUMPUR: A man used his position as chairman of a welfare body to file false Social Security Organisation (Socso) invalidity pension and insurance claims amounting to RM2.4 million using his sick and disabled members.
The dubious activities of the 34-year-old mastermind along with nine accomplices was unveiled after 24 police reports were made by Socso and four insurance companies last year.
The reports were made after an internal investigation in 2016 revealed suspicious claims made by the syndicate since 2016.
The syndicate was detected in manipulating medical reports to enable them to claim from Socso and insurance companies by swapping the "patient" during a medical examination and X-ray.
Federal police Commercial Crime Investigation Department director Datuk Seri Amar Singh Ishar Singh said individuals who wanted to claim would pretend to suffer from stroke or experienced a disability due to accident while registering at the hospital.
"But when undergoing a health test and X-ray, the ‘fake’ patient will be changed with someone who is experiencing stroke or disability.
"After the process is completed, the ‘fake’ patient will take back their place to collect the medical report," he told a press conference here today.
Amar Singh said the mastermind was using his position as chairman to relate himself to the sick and disabled group.
"Some of them are being used by the syndicate, but some are paid to abet them."
He said investigation found the syndicate had made a claim of RM1.2 million from Socso and RM1.2 million from two insurance companies using 24 names and a company address.
"The company was registered by the syndicate on a non-existent business to allow its ‘employees’ to make Socso contribution for 24 months before being eligible to make a claim.
"The syndicate was also detected trying to make another claim from two other insurance companies involving a claim of RM2.4 million," he said.
According to Amar Singh, the arrest saves RM30 million of Socso funds as invalidity pension was a lifetime pension.
"Among the detected individuals who made the fake claim were the mastermind, his parents, driver and his immediate family.
"All suspects including two women aged between 34 and 60 were detained in several raids in Sepang on March 13," he said.
He added some of the suspects were still under remand while some had been released on police bail.
The case was being investigated under Section 420 of the Penal Code for cheating.