A man has been sentenced for selling invalid insurance policies and attempting to take out motor insurance by concealing his driving offences and using a fake no-claims discount certificate.
Mohamed Choudhary, 33, of Plashet Grove, Newham, was handed a two-year suspended sentence at Inner London Crown Court on 13 September 2024. His sentence includes a six-month curfew, running daily from 9pm to 6am, enforced by an electronic tag. Additionally, Choudhary must complete 150 hours of unpaid work and pay £1,630 in costs.
The case was investigated by the City of London Police’s Insurance Fraud Enforcement Department (IFED) following a referral. Choudhary pleaded guilty to two counts of fraud by false representation and carrying on a regulated activity without authorisation or exemption at Inner London Crown Court on 1 July 2024.
Detective Constable Jim Allwood from IFED commented that Choudhary attempted to secure a discount on his own insurance policy by using a fake certificate, but his plan exposed further fraudulent activity.
"What Choudhary didn’t realise is that insurance companies will pick up on red flags like fake documents and false details on insurance applications,” he said. Allwood credited Aviva’s diligence in uncovering the fraud, which led to Choudhary’s broader actions coming to light.
Choudhary had been banned from driving for 11 months in March 2020 after being caught driving while disqualified. Toward the end of this ban, he tried to secure motor insurance with Aviva using a fraudulent no-claims discount certificate.
During the investigation, Aviva discovered that Choudhary was involved in "ghost broking," a term used for individuals who sell fake insurance policies.
Ghost brokers often claim they can provide legitimate car insurance at a lower cost. They may forge documents, falsify details to reduce premiums, or take out genuine policies and cancel them shortly after. Victims frequently become aware of the fraud only when making a claim or being stopped by the police.
Victoria Mulholland, fraud investigations manager at Aviva, said the case should serve as a warning to those attempting to profit from fraudulent motor insurance schemes.
“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,” Mulholland said.
Action Fraud, the national reporting service for fraud and cybercrime, received an average of two reports of ghost broking daily over the past year. Each victim lost an average of £1,921.
Jon Radford, head of intelligence, investigations & data services at the IFB, remarked on the broader risks of application fraud. He noted that Choudhary’s false details not only enabled him to drive while disqualified but also put others at risk by selling invalid insurance through ghost broking.
"We’re pleased to see justice be served. We’re collaborating closely with the police and insurers to stop more fraudsters in their tracks," Radford added, urging the public to report insurance scams to the IFB’s confidential CheatLine service.
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