Fake car insurance fraudster sentenced

A man has been sentenced, after he sold invalid insurance policies and tried to take out car insurance for himself by covering up his driving offences and using a fake no-claims discount certificate.

Mohamed Choudhary, 33, of Plashet Grove, Newham, was sentenced to two years imprisonment, suspended for two years, at Inner London Crown Court on 13 September 2024. He is also subject to a six month curfew, which runs daily from 9pm to 6am and is monitored by an electronic tag, and must also complete 150 hours of unpaid work and pay £1,630 in costs.

The case was referred to the City of London Police’s Insurance Fraud Enforcement Department (IFED) for investigation and Choudhary pleaded guilty at Inner London Crown Court on 1 July 2024 to two counts of fraud by false representation and carrying on a regulated activity when not authorised or exempt.

Detective Constable Jim Allwood, from the City of London Police’s Insurance Fraud Enforcement Department (IFED), said:

“Choudhary thought he was being clever by using a fake certificate to get a discount on his insurance policy, but his plan backfired when it resulted in more of his fraudulent activity coming to light.

“What Choudhary didn’t realise is that insurance companies will pick up on red flags like fake documents and false details on insurance applications. Thanks to the due diligence from Aviva, we were able to secure this result and put a stop to his actions before he could target more victims with fake car insurance policies.”

Choudhary was banned from driving for 11 months in March 2020, after he was caught driving whilst already disqualified.

Towards the end of his second driving ban, Choudhary tried to take out a motor insurance policy with Aviva using a fake no-claims discount certificate. While investigating the policy, Aviva uncovered that Choudhary was also a ‘ghost broker’, a term used to describe fraudsters who sell fake insurance policies.

Ghost brokers claim that they can offer legitimate car insurance at a significantly cheaper price. They will forge insurance documents, falsify customer details to bring the cost of the premium down, or take out a genuine policy and cancel it soon after. Victims often only realise that they do not have genuine cover when they try to make a claim on insurance or are stopped by police.

Victoria Mulholland, Fraud Investigations Manager at Aviva, commented:

“The outcome of this hearing should act as a deterrent to those seeking to financially profit from fraudulently arranging low-cost motor insurance. Aviva works tirelessly with industry partners including the Insurance Fraud Bureau and IFED to identify and disrupt ghost brokers. Their clients may be innocent victims who believe they are fully covered, or drivers who know the premium they have paid undervalues their risk.

“However, in both cases vehicles are being driven on UK roads without insurance and the only person who benefits is the ghost broker. Aviva is determined to take positive action to protect all motorists and mitigate the impact of fraud on premiums paid by our honest customers.”

Action Fraud, the national fraud and cyber crime reporting service, received an average of two reports of ghost broking each day in the last year. Each victim lost an average total of £1,921.

Jon Radford, Head of Intelligence, Investigations & Data Services at the Insurance Fraud Bureau (IFB), said:

"Application fraud has devastating impact on the safety of our roads and this was exemplified by Choudhary's reckless actions. By providing false details to his insurer, not only was he trying to get away with driving while disqualified, but he also tried to make money by providing 'ghost broking' services which left others driving illegally and without valid insurance.

"We're pleased to see justice be served. We're collaborating closely with the police and insurers to stop more fraudsters in their tracks. We urge anyone with evidence of an insurance scam to report it to our confidential CheatLine service."

If you think you have been a victim of ghost broking, you can report it to Action Fraud at actionfraud.police.uk or on 0300 123 2040. You can also contact the Insurance Fraud Bureau’s CheatLine via insurancefraudbureau.org/cheatline or on 0800 422 0421.