By: 18 April 2018
Ghost broker given prison sentence

A ghost broker who sold fake car insurance policies and made fraudulent motor insurance claims worth £321,000 for fictional car accidents has been sentenced to almost four years in prison.

Abdul Hakim sold 21 fake car insurance policies and made 18 fraudulent motor insurance claims for fictional car accidents. He pleaded guilty to all charges of fraud by false representation and was sentenced at Bradford Crown Court to three years and eight months in prison.

In total, Hakim’s 18 false insurance claims amounted to around £321,000, while the estimated loss incurred by the 21 fake policies from his ghost broking fraud is more than £21,000.

An investigation by the City of London Police’s Insurance Fraud Enforcement Department (IFED), with support from the Insurance Fraud Bureau (IFB) and multiple insurance companies, discovered that Hakim enticed several victims with offers of cheap car insurance, but the policies he sold were fake.

He also lied about fake car accidents and used his victim’s details to make false insurance claims, and provided fake engineer reports, medical reports and credit hire charges to inflate his claims.

City of London Police Detective Constable Jamie Kirk, who led the IFED’s investigation, commented: “By selling fake car insurance, Hakim put these drivers at risk as they were completely unaware that they were driving illegally. As well as the personal harm experienced by victims, ghost brokers like Hakim cause financial harm to the insurance industry, driving up the cost of insurance premiums for all motorists.”

“Thanks to the information provided by the IFB and a number of insurance companies, the Insurance Fraud Enforcement Department’s investigation has led to Hakim being sentenced to several years in prison. This should act as a firm warning to fraudsters that IFED will catch you and you will face the consequences.”

Jason Potter, head of investigations at the IFB, added: “This investigation between IFB, IFED and our insurer members was a complex one, and it took the hard-work and dedication of everyone involved to see Hakim brought to justice. This case highlights the length fraudsters will go to in order to make money, but we are determined to clamp down and prosecute anyone involved in this type of crime.”

“We’re pleased with the outcome of the sentencing, and the message that this sends to potential fraudsters—fraud is not acceptable, you will be caught and you will be prosecuted to the full extent of the law.”

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