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A fraudster has been jailed for selling invalid car insurance to motorists, Atique Khan provided false details to 1st Central Insurance and left 50 drivers without insurance.
Comments on the insurance scam
Glen Marr, director of fraud at 1st Central Insurance, commented, “1st Central is pleased that this ghost broker has been brought before the court, as yet another example of the excellent and successful collaborative work of IFED and the insurance industry, in rooting out and pursuing insurance fraudsters. At 1st Central we will continue to adopt an uncompromising stance with fraudsters, underlining our commitment to protecting genuine customers from the impact of fraud. This commitment extends to working closely with IFED, to ensure fraudsters face the repercussions of their dishonest actions.”
DS Mark Forster, who led the investigation, commented, “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.”
The insurance scam details
Atique Khan posed as a car insurance broker and, between Augusta and December 2011, convinced almost 50 drivers he could get them cheaper premiums. In reality he was conning them out of thousands of pounds.
Khan obtained real insurance policies from 1st Central Insurance, but provided the insurer with false personal details and forged no claims bonus documents in order to get the premiums at a cheaper price. The man charged drivers more than the premium actually cost and a handling fee. The insurance was immediately invalid to the driver he sold it to as misinformation had been given to the insurer at point of sale.
The scam was exposed in January 2012, when 1st Central discovered all of the policies included identical email addresses. The insurer referred the case to the City of London Police’s Insurance Fraud Enforcement Department (IFED), which launched a criminal investigation. IFED subsequently identified that some of the policies were paid for with bank cards belonging to Khan.
Detectives arrested Khan at his house in Bradford in May. While there, they seized numerous insurance documents, £1,000 in cash, a computer, laptop, two iPads and several mobile phones. A forensic examination of the electronic devices revealed forged no claims bonus documents.
During an appearance at the Old Bailey last month, Khan 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.
This morning Khan was jailed for 12 months, for his car insurance scam.