Ministers pledge to end compensation scandal of handouts to fake victims
FANTASISTS who allege they were sex abuse victims are being allowed to keep taxpayer-funded compensation even after their claims have been exposed as false, a Daily Telegraph investigation can reveal.
Last night, ministers launched an investigation into why thousands of pounds paid out to fake victims has not been clawed back.
Critics fear the system could have helped to encourage an industry of false claimants.
The Telegraph can disclose that the man who falsely accused Field Marshal Lord Bramall and Lord Brittan, the former home secretary, of involvement in a VIP paedophile ring has kept £50,000 paid to him by the Criminal Injuries Compensation Authority (CICA). The man, who can be identified only as “Nick”, has been under investigation for almost a year for perverting the course of justice.
A second man, whose false rape allegation led to a fire brigade chief being wrongly jailed, has not been required to pay back £11,000 awarded to him. Jemma Beale, who was convicted of perverting the course of justice last month over a string of false rape claims, also received £11,000 from CICA.
According to victims of false allegations, the problem has been compounded by a compensation culture that has included lawyers touting for business for sex abuse victims. Some firms have even advertised in prison publications for clients.
CICA insisted a team was employed to investigate fraudulent claims that could then be passed on to police. But opponents complain there is no easy mechanism for recovering money that has already been paid out.
Alleged victims of crime can receive money even where no perpetrator has been found or convicted. The CICA scheme consists of a sliding scale for compensation depending on the seriousness of the injury. Some law firms even publish a “sexual abuse compensation calculator” on their websites that allows people to work out how much money they are entitled to.
Dr Phillip Lee, the justice minister, said: “[CICA] is in place to allow victims of crime to receive the compensation they are entitled to. While fraudulent claims are rare, it is crucial that any accusation of abuse of the system is fully investigated. Where it is clear a claim is false, [CICA] works closely with the police to prosecute perpetrators and recover any funds paid out. It is vital that the public can have absolute confidence in the system. We will investigate these claims fully and will not hesitate
to take action if evidence of wrongdoing is uncovered.”
Bob Neill, the Conservative chairman of the all-party Commons justice committee, said he would raise the issue when the committee reconvenes this month. He added: “It is quite wrong that it should be so easy for people to be paid compensation on the basis of something that has not been tested and proved, and even worse that nothing is done to get that money back if the allegations prove to be false.
“Nick” has been under police investigation for almost a year for making false abuse claims and also for receiving compensation for his alleged ordeal. Police officers assigned to investigate his lurid claims of murder and abuse even helped him with his CICA claim. He received the compensation even though nobody was ever charged over his false allegations.
A friend of Lord Bramall, the 93-yearold D-day veteran and former head of the Army, said it was deeply worrying that “Nick” still had the money and that there was no guarantee it can be reclaimed. The friend said: “Nick has been exposed as a complete fantasist. It is outrageous that the compensation has not been clawed back. The whole thing is completely mad.”
Harvey Proctor, the former Tory MP, who lost his home, job and reputation after being falsely accused of rape and murder by “Nick”, said: “There ought to be some mechanism whereby the money can be automatically recovered if the person is found to have lied. It is completely at odds with justice to be handing out public money to people who are making up claims.”
Another serial liar who received £11,000 from CICA is Danny Day, who falsely accused David Bryant, a Dorset fire chief, of rape. Mr Bryant, 66, spent two and a half years in jail before the Court of Appeal exonerated him. He was freed from jail only after it emerged that Mr Day, from Bromley in Kent, had previously sought medical treatment for being a “chronic liar”.
CICA defended its actions and insisted it did all it could to recover money wrongly paid out. The organisation refused to comment on specific cases and was unable to disclose the extent of the problem.