Bradford 'ghost broker' jailed for fraud by false representation and forgery

Atique Khan, a ghost broker, based from Bradford, has been jailed for promoting invalid car insurance to motorists across the city.

Khan, 33, posed as motor broker and for 5 months to December 2011, when he defrauded both First Central and his clientele - selling false policies to over fifty drivers.

He obtained true policies from First Central, by delivering the insurer with false information and forged no claims paperwork to get premiums at a cheaper price tag.

He then charged drivers more than the premium, plus a managing fee, for insurance that was immediately invalid due to the misinformation.

The scam was exposed in January 2012 when Initial Central discovered all of the policies incorporated identical email addresses, and referred the situation to the City of London Police Insurance Fraud Enforcement Department (IFED), which launched a criminal investigation.

Khan was arrested at his home in the Queensbury district of Bradford, in which officers seized numerous insurance documents, £1,000 in cash, a computer, laptop, 2 iPads and many mobile phones, on which forged no claims documents were found.

In court in March, Khan pleaded guilty to 5 counts of fraud by false representation, 14 counts of utilizing a forged article and one particular count of possession of criminal residence, and he was this morning jailed for 12 months.

DS Mark Forster, who led the IFED investigation, stated: "Khan devised a car insurance scam that saw him ruthlessly target members of his neighbourhood to make thousands of pounds.

"He left his victims unknowingly out on the street with no insurance, exposing them and other drivers to risk and economic loss, but now the court has ensured he will pay out the cost for his fraud."

http://www.motorworldarc.co.uk/news.asp

Insurance Fraud Enforcement Department (IFED) - 17 arrested in nationwide raids by police tackling 'credit hire fraud

17 people have been arrested in raids across England by detectives investigating criminal gangs making false insurance claims for courtesy cars provided to motorists while their own vehicle is being fixed.

20 warrants were executed at business and residential addresses in Essex, Hertfordshire, Lancashire, London, Northamptonshire, Nottinghamshire, Surrey and West Yorkshire, yesterday morning (Wednesday 26 March 2014) in a police day of action that marks the culmination of months of investigation by the Insurance Fraud Enforcement Department (IFED).

One hundred officers took part in the operation that saw the City of London Police unit supported by colleagues from the force's Economic Crime Directorate and officers from local forces.

Criminal gangs typically set up phoney, or use corrupt, claims management and hire companies to commit this type of insurance fraud, known by industry as 'credit hire fraud'.

Through these businesses the fraudsters will invoice insurers for a courtesy car they have not actually provided, commonly called 'phantom hire'.

In other instances they will 'lease' the same courtesy car to different motorists at the same time and put in a separate claim for each fictional hire, often known as 'cross hire'.

Sometimes they may also bill an insurer for providing a top spec courtesy car when only a basic model was given. Hire periods are also often exaggerated.

DCI Dave Wood, Head of IFED, said:

"This operation reveals credit hire fraud as a nationwide problem which IFED is tackling through a co-ordinated law enforcement response.

"While insurers are the criminals' intended victims, innocent motorists ultimately pay the price in terms of the impact of insurance fraud on the cost of premiums.

"Insurer diligence, coupled with enforcement action being taken by IFED and supported by local police forces, is paramount to confront this threat now and in the future."

Arrest breakdown across the police force areas as follows:

· Lancashire = 3

· London = 9

· Northamptonshire = 1

· Nottinghamshire = 2

· West Yorkshire = 2

The 17 people were arrested on suspicion of a variety of offences including fraud by false representation, conspiracy to defraud, money laundering and forgery.

http://www.motorworldarc.co.uk/news.asp

IFB welcomes jail term for fraudsters

The Insurance Fraud Bureau (IFB) has welcomed the further sentencing of three convicted insurance fraudsters, for failing to repay their ill-gotten gains.

Originally sentenced to jail in 2010 for submitting over 100 fraudulent insurance claims, brothers Nadeem and Amer Dad and their father, Munsif Dad, were also required to repay almost £280,000.

As Nadeem and Amer haven't repaid a penny, and Munsif has only funded a third of what was expected of him, all three have been sentenced to a total of almost four and a half more years in prison.

Investigators had previously secured a £51,800 confiscation order against Nadeem Dad over a scam which saw false claims made for storm damage, car crashes and even lost pedigree bulldogs.

Ben Fletcher, Director of the Insurance Fraud Bureau said: "This decision sends an important message to insurance fraudsters everywhere; if you expect your illegal profits to be waiting for you when you get out of jail you'll be back there quicker than you expect. We wholeheartedly support the actions of the Crown Prosecution Service and their pursuit of fraudsters who somehow think that they are entitled to keep their illegal nest-egg."

The IFB was formed in 2006 to spearhead the collective fight against organised insurance fraud. Since its inception, the IFB has assisted police with over 915 arrests and helped secure total jail terms of more than 235 years for organised fraudsters."

Det Insp Dave Groombridge, of Pennine CID, who investigated the case had previously said: "Fraudulent claims hit the pockets of the decent law-abiding public with every resident, motorist and trader facing increased premiums to compensate for the greed of these criminals.

"Nadeem Dad not only received a custodial prison sentence, but he has also had to face the consequences of his actions by repaying a significant amount of his ill-gotten gains.

"I hope this sends out a warning that if we find you with cash that you cannot account for, you will be targeted."