Trial underway of team of fraudsters who sold bogus car insurance from a fake call centre

Prosecutor Ann Mulligan said, "It was a fraud factory. There were printers, faxes, telephones, bank cards, chequebooks, mobile phones, shredders.

Bukharee had realised the earlier websites were under investigation and had decided to set up a new campaign."

A total of £40,733 had been paid by 38 customers for car insurance in the three weeks the First Direct website was up and running, the court heard.

Miss Mulligan said: "The case involves a ghost brooking website fraud - a website created for the purposes of fraud.

"It is not in dispute that this was a sophisticated fraud and it was masterminded by Danyal Bukharee.

"He used the four ghost broking websites to carry out car insurance fraud. He was responsible for setting up the websites, each of them purporting to offer genuine motor insurance at around a 15 per cent discount below the average price offered by genuine companies.

"Unsuspecting members of the public were duped into buying this non-existent car insurance and paying money for it.

"What he identified was he could target innocent members of the public, in particular young first time drivers for whom insurance premiums are extremely high, often inhibitively so."

It is claimed Bukharee recruited Giovanni Recchia, 47, to run the First Car Direct fraud from the flat by answering phones and dealing with customer enquiries.

Recchia was with Bukharee when police arrived at the flat and acted as a witness to the tenancy agreement, the court heard.

Detectives found a whiteboard featuring the names of nine invented employees next to their roles in claims, admin and compliance, it is claimed.

One victim remembered being put through to David Wood in sales and offered a quote of £2,018 for insurance, jurors were told.

Miss Mulligan said: "You may think Bukharee has a sense of humor. Detective Chief Inspector David Wood is in fact head of the Insurance Fraud Enforcement Department."

Police also found an iPod connected to sound system with only one track uploaded titled 'Office Noise.'

Jurors heard Recchia is likely to claim he was an innocent dupe and was led to believe this was a genuine business.

"Recchia cannot have failed to be aware that something was amiss," said Miss Mulligan.
"Using a name that wasn't his has to have alerted him to the fact this was a fraudulent enterprise."

Andrew Goward, 38, Gary Heaven, 37, and Mohamed Saleh, 26, were recruited to open bank accounts to receive the money paid in by the victims, it is claimed.

"Once these were opened Bukharee would take over control of the accounts to enable him to access the money," said Miss Mulligan.

"These three men may not have known it was a car insurance fraud specifically but what the Crown say is that at the time they opened bank accounts they did so in circumstances such that it can safely have been inferred they must have known or at the very least suspected they were doing it for criminal purposes."

Goward is said to have received proceeds from the Astuto Insurance and Car Insurance Warehouse between May and August 2011.

Heaven and Saleh are said to have received the proceeds from the Aston Midshires Insurance fraud between August 2011 and January 2012.

Buckharee, from Putney, south London, has admitted two counts of fraud by false representation and three counts of money laundering.

Recchia, from Retford, Nottinghamshire, denies one count of fraud by false representation.

Heaven, from Tulse Hill, south London, Goward, from Nottingham, and Saleh, from Greenford, north west London, all deny money laundering.

Gocompare - cost (followed by quality of cover) are biggest reasons for drivers choosing a car insurer

Cost is the key driver for 75% of Brits when choosing a car insurance policy, while just over half are influenced by the quality of cover being offered.

The research into factors influencing motorists' choice of car insurance policies, commissioned by Gocompare.com, revealed that in addition to the price of the policy, drivers were concerned about the level of cover on offer and the insurer's reputation, particularly in the relation to paying out for claims.

Reason for choosing car insurance provider:

1 - 75% said cost

2 - 51% said quality of cover

3 - 33% said insurer's reputation

4 - 32% said "I trust the insurer to pay out if I need to claim"

5 - 28% said the ability to pay in monthly installments

6 - 21% said "if I get a good deal (e.g. 11 months cover for the price of 12, second vehicle discount, free gift)"

7 - 12% said recommended by friends and family

8 - 5% said specialist provider (older/younger/ women drivers, sports/classic cars)

9 - 4% said recommended by an insurance broker

10 - 2% said "I like their advertising!"

Scott Kelly, head of car insurance at Gocompare.com, commented:

"For many drivers insurance represents a significant part of the cost of running a car, so it is no surprise that cost is an important consideration in choosing an insurance policy.
"
However, we would suggest drivers not pick a policy based on price alone, but to also think about the level of cover they need.

A number of insurers include additional features, such as a courtesy car, breakdown cover or legal assistance as standard, but some insurers offer these as optional extras.
So before signing up to a policy you need to think about the level of cover you need and whether you could buy it cheaper elsewhere. For example, breakdown cover is frequently offered as an additional extra with car insurance, but may be cheaper bought as a separate, standalone policy.

"Our research found that for some people special offers or the ability to spread the cost of their insurance by paying in installments are important factors when buying insurance. But motorists should consider the full cost of what they are being offered, bearing in mind that many insurers charge a fee for paying monthly."

Which? - The surprising factors that are driving up car insurance premiums

New Which? research reveals that parking your car in a garage, having children and being divorced or unemployed can all increase the cost of car insurance.

We found:

.  Direct Line quoted up to 22% more if you're unemployed, compared to our default occupation of researcher.

.  LV was the most price-sensitive to occupation quoting brewery workers and private investigators up to 23% more, and a bar manager almost 28% more.

.  Oddly, More Than quoted 7% more if you keep your car in a garage than if you park the vehicle on your driveway – none of the other insurers did this.

.  Direct Line added an extra 7% (low risk) and 8% (high risk) if you don't own your home, and LV an extra 4% and 5%.

.  Direct Line also added an extra 8% and 9% if you have children, but More Than didn't change the quote at all in these situations and Aviva and The Co-operative didn't even ask.

.  LV quoted 1% and 3% more if you are single, divorced or separated, rather than married or widowed.
It's unsurprising that driving convictions can really make the cost of car insurance stack up, however, we found the premium hikes can vary widely between different insurers:

.  More Than charged up to 55% more for motorists who received a conviction for 'driving without due care and attention', but Aviva only increased quotations by up to 7%.

.  Premium hikes for 'exceeding the motorway speed limit' also ranged greatly, from 2% for the low-risk scenario with Aviva, to 19% for the high risk scenario with More Than.

Which? executive director, Richard Lloyd, said:

"The cost of your car insurance can vary dramatically across the market, with some surprising factors affecting the price, so it really does pay to shop around and not automatically accept the first renewal offer from your existing insurer."

To see what made rates go up and down, we got online quotes for five of the largest insurance companies – Aviva, The Co-operative Insurance, Direct Line, LV and More Than. We created a high and low risk scenario by changing the make and model of the car, the drivers age, and their location, and then tweaking other variables to see how the rates change.

The low-risk scenario is a 2012 Ford Focus 1.6 Zetec driven by someone in their mid-40s living in rural Cambridgeshire, and the high-risk scenario is a 2013 BMW 120d Sports Coupé driven by a mid-30s motorist living in Tooting, London

VBRA - Code of Practice passes Trading Standards audit

The Vehicle Builders and Repairers Association (VBRA) recently had the operation of its code approval and conciliation processes scrutinised by the Trading Standards Institute (TSI) under the TSI Consumer Code Approval Scheme (CCAS).

VBRA's is the first code to be formally audited in this way since TSI took over the mantle of code approval from the OFT earlier in 2013.

After a thorough review of VBRA's processes, and interviews with the operating staff, TSI's report on VBRA's dealings with customer complaints says;

"VBRA's conciliation process is excellent [demonstrating] that they will provide additional support to consumers... [they] seek out and pay for independent experts to examine vehicles in order to resolve disputes.

"The very low number of disputes that reach arbitration (none in the last two years) is a reflection of the quality of the in-house conciliation service.

"VBRA are fulfilling their obligations as a code sponsor and ensure their members comply with the CCAS core criteria and their own code.
The in-house conciliation process is excellent and an example of best practice."

Commenting, Malcolm Tagg, VBRA Director General said

"The audit process was painless and endorses that what we have always done, regardless of external Code Approval, is good for customers and adds an extra comfort factor to inform motorists decision to use a VBRA member for their repair.

"We are fortunate our members are very good at what they do and very few complaints need to cross our desks – testament to the high regard in which they hold their customers and their dedication to getting it right first time."

Leon Livermore, Chief Executive, Trading Standards Institute said

"It is essential that TSI ensure code sponsors are complying with the requirements of the consumer codes approval scheme and that consumers can be reassured that the high standards of the scheme are being adhered to.
I would like to congratulate VBRA on their commitment to raising consumer standards."

'crash for cash' - fraudsters admit £150,000 personal injury insurance con from coach crash

Liam Gray pleaded guilty to two counts of conspiracy to defraud at Southwark Crown Court, while his friends Ben Carberry and Kevin Hamilton each pleaded guilty to one count.

The case came to court after Service Underwriting referred suspicions about whiplash claims from 30 people who had been travelling by coach to Belle Vue dog track in Manchester, in December 2011, to the City of London Police's Insurance Fraud Enforcement Department (IFED), triggering a criminal investigation.

The driver of the coach had told the insurer he was made to pull over on a roundabout at a junction of the M57 by passengers who said the coach had been hit from behind by a Renault Megane, even though he had felt no impact.

He reported that there was only very superficial damage to both vehicles, but that the passengers decided to cancel their trip saying they felt unwell and asked to be taken back to The Mons pub in Bootle where they had been picked up.

He said that before leaving the coach the entire group stated that they had been injured and gave him their details. He then watched as they ran across a dual carriageway and into the pub.

The insurer later established through a social networking site that Gray, Carberry and Hamilton all knew each other and had been to Everton football matches together.

IFED detectives travelled to Liverpool twice in 2012, arresting Gray and Carberry in June and Hamilton and Joe Hindley a month later.
They had found Gray hiding in a bathroom in Carberry's flat and at Gray's flat they seized Hamilton's driving licence and documents relating to the Renault.

Their investigation established that prior to the collision Gray had bought the Renault, along with insurance for Hamilton, and that Carberry had arranged and paid for the coach, as well as the group booking for the dog track.

They also identified that Hamilton had driven the Renault at very low speed into the back of the coach and that Carberry was Gray's contacts on the coach.

In November Gray was charged with two counts of conspiracy to defraud, while Carberry, Hamilton and Hindley were each charged with one count.

Gray, aged 26, of First Avenue in Fazakerley, was yesterday (Monday 19 August 2013) remanded in custody to appear at Southwark Crown Court at a later date.

Carberry, aged 20, of Old Hall Street in Liverpool city centre, and Hamilton, aged 35, of Asser Road in West Derby, will also be sentenced at the court at a later date.

'Flash-for-cash' labelled as the new motor insurance scam

UK motorists are being warned about a new insurance scam, being labelled by anti-fraud experts as "flash-for-cash", whereby criminals flash their lights to let other drivers out of a junction, then crash into them on purpose, according to the BBC.

The gangs tend to target new, smarter vehicles or vulnerable road users, including older people and women with children in the car.

The scam is costing insurers hundreds of millions of pounds every year.

It is a new tactic for an already well established crime, called "crash for cash", where criminals slam on the brakes for no reason so that the victim drives into the back of their car.

Police investigators said the criminals will often remove the bulbs in their brake lights so other road users don't know they're stopping.

However, "flash-for-cash" is more crafty, because it is harder to prove in court, often coming down to the innocent driver's word against the criminal's that they flashed their lights to let them out.

Fake claims

Each "accident" can net the gangs tens of thousands of pounds in a variety of ways.

Firstly, they put in false personal injury claims for whiplash, sometimes including claims for people who were not even in the car. Added to that, they might charge the insurance company for loss of earnings, then they put in fake bills for vehicle storage, recovery, repairs, and replacement car hire.

Detective Inspector Dave Hindmarsh from the Metropolitan Police is an expert at catching them out. He says this kind of crime costs the industry a fortune and, as ever, it's the honest, insurance-paying motorist who is footing the bill.

"The problem is a growing problem. Financially it costs insurers £392m a year - that impacts on motorists as it's an extra £50 to £100 on every person's premium so that's a financial cost.

"[There are] emotional costs [as] if you're involved in a crash you could well lose your confidence, and if your passengers are children they may well become wary of being passengers in cars, and of course you may get injured or killed," he said.

This latest "flash-for-cash" warning has come from Asset Protection Unit (APU), a company which helps the police and the insurance industry investigate fraud. Neil Thomas at APU says the criminals pick on people who are not going to put up a fight,

"Perhaps single females in the car with children in the back, perhaps doing the school run. Where they know there's going to be no resistance, no real argument at the scene. The children are going to be upset".

Good intentions

Generally speaking, drivers are not meant to flash their lights to let people out onto busy roads. It is meant to be used as a warning.

The Highway Code says: "Flashing headlights. Only flash your headlights to let other road users know that you are there. Do not flash your headlights to convey any other message or intimidate other road users. Never assume that flashing headlights is a signal inviting you to proceed. Use your own judgement and proceed carefully."

However, the reality is that most people do use it as a friendly gesture, and law-abiding motorists feel it's a shame that something that is meant to be so positive, a rare show of good manners on the road, is now being abused by criminals.

The police and fraud experts believe that by raising awareness, and making people more wary, there is a good chance many drivers won't take the bait when the criminals lay a trap.

Direct Line - Half of drivers ignore basic advice to prevent deadly tiredness at the wheel

Drivers are being advised to take simple steps to avoid falling asleep at the wheel as the holiday season starts and many families prepare for long distance travel to destinations across the UK and Europe.

Road safety charity Brake and Direct Line today reveal more than half of drivers (55%) are ignoring basic advice to take rest breaks at least every two hours on long journeys, while one in ten (9%) don't stop at all on long journeys unless they absolutely have to.

Many also admit failing to get enough sleep the night before a long journey, as less than half (45%) make sure they get at least seven hours' sleep.

Brake and Direct Line are warning families gearing up for long holiday journeys that too little sleep and too few breaks radically affects your ability to drive safely.

After five hours' sleep you only have a one in ten chance of staying fully awake on a lengthy journey.

The survey of 1,000 drivers from across the UK by Brake and Direct Line showed widespread complacency about the risks of tired drivers on long journeys.
It found:

- Male drivers are far more likely to drive for longer periods without stopping

- 14% of male drivers have driven for six hours or more without stopping, compared with 3% of female drivers.

- Half of male drivers (50%) have driven for four hours or more without stopping, compared with a third (31%) of females.

- A third of drivers (35%) admit sometimes or always trying to push on if they feel sleepy at the wheel. 38% of males do this compared to 31% of females.

Julie Townsend, deputy chief executive, Brake, the road safety charity, said:

"A large proportion of the driving public are scarily confident they can push on through on long drives without stopping.
In reality, regular breaks – at least every two hours – are essential for staying alert and awake, as is getting plenty of sleep the night before.

"Sleepiness can catch you unawares at the wheel and it only takes a couple of seconds on a motorway to cause absolute carnage.
The summer means long journeys for many families hoping to catch some sun at the coast or abroad. Brake is warning that to make sure you and your loved ones get there safely you need to allow plenty of time to take it easy, take regular rest breaks, and ensure you get a full night's sleep beforehand."

Rob Miles, head of Motor at Direct Line, commented:

"Tiredness and driving are a deadly combination. Not only is there a risk of falling asleep at the wheel, but when we are tired our reactions and awareness of our surroundings are not as sharp as they would normally be.
Whilst tired drivers may think that stopping for a break will increase their journey time, it's not worth the risk to themselves, their passengers or other road users. It is better to get there late than not to arrive at all."

The facts

Driver tiredness is one of the biggest killers on our roads. In the UK driver tiredness is estimated to cause one in five deaths on trunk roads. In 2011 in Great Britain it was reported 84 people were killed and 420 suffered serious injuries in tiredness related crashes, although the real figure could be higher, because it can be difficult to prove when a crash is caused by a driver falling asleep. They tend to be high-speed crashes, because drivers do not brake before crashing, so the risk of death or serious injury is greater.

Calls to government

Brake supports recent government proposals to allow drivers who oversleep at motorway service stations to pay for their parking retrospectively to avoid a fine.

But it calls for more to be done to help drivers by creating more stopping places for drivers to take a break and more government advertising on the risks of driving tired, raising awareness about the importance of not embarking on a journey while tired, and steps to take if you start to feel drowsy at the wheel. We also need greater crash protection on trunk roads, such as longer crash barriers over bridges, to reduce the severity of crashes if they do happen.

Action to tackle tired driving among fleet drivers is also needed because an estimated four in ten tired driver crashes involves a commercial vehicle driver. Brake recommends regular testing of people who drive for work for sleep apnoea, a treatable condition that makes falling asleep at the wheel much more likely, thought to be particularly widespread among HGV drivers. Brake also believes the rules controlling hours that can be driven by truck and bus drivers should be extended to cover fleet drivers in vans and cars.