A fraudster has been jailed for selling invalid car insurance to motorists in restaurants, internet cafes and by the roadside in a practice known as ‘ghost broking’. Posing as a car insurance broker and, between August and December 2011, Atique Khan convinced almost fifty drivers that he could get them cheaper insurance premiums. In reality he was conning them out of thousands of pounds.
By acquiring real insurance policies from an insurance company, he then provided the insurer with false personal details and forged no-claim bonus documents in order to get the premiums at a cheaper price. He then charged drivers more than the premium actually cost to buy originally plus an additional handling fee. The insurance was immediately invalid to the driver sold the policy because misinformation had been given to the insurer at the point of sale.
The scam was uncovered in January 2012 when the insurance company discovered all of the policies used identical email addresses. The insurer referred the case to the City of London Police’s Insurance Fraud Enforcement Department (IFED), which then launched a criminal investigation. IFED then identified that some of the policies were paid for with bank cards belonging to Khan, who was subsequently arrested at his house. Here they seized numerous insurance documents, £1,000 cash, a computer, laptop, two iPads and several mobile phones. Forensics then revealed forged no-claim documents stored on the electronic devices.
Khan appeared at the Old Bailey and pleaded guilty to five counts of fraud by false representation, 14 counts of using a forged article and one count of possession of criminal property. He was subsequently jailed for 12 months.
DS Mark Foster, who led IFED’s investigation, said “Khan devised a car insurance scam that saw him ruthlessly target members of his community to make thousands of pounds. He left his victims unknowingly out on the road with no insurance, exposing them and other drivers to risk and financial loss, but now the court has ensured he will pay the price for his fraud.”
Perhaps the moral of the story is “if it is too good to be true, it is probably too good to be true”: at Westhill Insurance Services we offer an honest and open service to all our clients. Vehicle insurance is one of our speciality areas, so if you are seeking to find the best possible deal at a price you can afford, speak with us. We don’t cut corners, but we won’t sell you insurance you don’t need either! We have a large client base who come back to us year after year and who are taking advantage of our Westhill Referral Voucher Scheme and saving huge amounts on their own renewal premiums. Word of mouth is the best recommendation, so why not take advantage and give us a call to quote for all your insurance needs. With us you will have complete peace of mind – and the chance to save money on all your renewals!