"he also helped facilitate wider criminality."
Suhail Hussain, aged 29, of Luton, was jailed for two years at Inner London Crown Court on Monday, February 11, 2019, for setting up fake car insurance companies.
He also stole the details of real companies to buy 10 fraudulent fleet insurance policies.
The policies covered approximately 70 different vehicles, some of which had been involved in criminal activity including drug dealing and burglary.
Hussain acted as a ‘ghost broker’ between December 2013 and February 2016 when he registered seven fraudulent companies with Companies House.
He also used the stolen details of five legitimate companies, both with the aim of buying fake fleet insurance policies.
The City of London Police’s Insurance Fraud Enforcement Department (IFED) investigated Hussain’s fraudulent activities.
By taking out fleet policies, Hussain could add numerous vehicles onto them for a fraction of the price of real cover.
Some of the vehicles covered had been involved in criminal activity. It is believed they were added to the policies to make them harder to trace.
The IFED found that Hussain bought 10 insurance fleet policies with a value of approximately £60,000.
They also found over 70 different vehicles had been added to them.
In addition, it was revealed Hussain had used the details of two real companies to make fraudulent insurance claims for two car accidents, worth £6,990.
Leading the investigation was Detective Constable Andrew Porcher, he said:
“Not only did Hussain act deceitfully to take out numerous false fleet insurance policies, he also helped facilitate wider criminality.”
They discovered Hussain lied about being a solicitor when setting up some of the fake companies.
The Solicitors Regulation Authority (SRA) proved he was lying.
A statement from the Financial Conduct Authority (FCA) also confirmed Hussain was not authorised to act as an insurance broker.
Suhail Hussain was found guilty of fraud and was jailed for two years.
DC Porcher added:
“This should act as a warning to anyone who is thinking of setting up fake companies or exploiting the details of real ones to commit insurance fraud, you will be caught and you will be punished.”
In a similar case, three men from India were arrested for operating a fake insurance company.
They sold bogus insurance policies to over 800 motorists in Mumbai. Police estimate the number may be higher as it is likely they sold the policies in other Indian cities.
The men duplicated the policies of real companies and then sold them to motorists at cheaper prices.