A man who was involved in selling fake car insurance policies and using forged documents to conceal his driving offences has been sentenced to two years imprisonment, suspended for two years. Mohamed Choudhary, 33, from Plashet Grove, Newham, was also ordered to wear an electronic tag and adhere to a six-month curfew, during which he must stay at home from 9pm to 6am. Additionally, he must complete 150 hours of unpaid work and pay £1,630 in costs.
Choudhary pleaded guilty at Inner London Crown Court on 1 July 2024 to two counts of fraud by false representation and carrying out a regulated activity without authorisation. The case was investigated by the City of London Police’s Insurance Fraud Enforcement Department (IFED) after Choudhary was found to be involved in “ghost broking”—a scam in which fraudsters sell fake or altered insurance policies to unsuspecting customers.
Choudhary’s illegal activities came to light when he tried to take out car insurance with Aviva using a fraudulent no-claims discount certificate. The certificate was intended to provide a discount on his insurance policy, but it was found to be fake during Aviva’s verification process. While investigating, the insurer uncovered that Choudhary was also operating as a “ghost broker,” offering fake insurance policies to customers.
Ghost brokers typically offer motor insurance at significantly lower prices, but the policies they sell are either fake or contain altered details. Victims of these scams often only discover the fraud when they attempt to make a claim or are stopped by the police and find that their coverage is invalid.
Choudhary’s criminal activities also included attempting to hide his driving offences. He had been banned from driving in March 2020 for driving while disqualified, but continued his efforts to fraudulently obtain insurance to drive while still banned.
Detective Constable Jim Allwood from IFED commented on the case, saying, “Choudhary thought he could get away with using a fake certificate to reduce his insurance costs, but his actions led to a broader investigation and his eventual arrest. Insurance companies, like Aviva, are vigilant and have the expertise to detect fraud, which is what helped bring this case to a close.”
Victoria Mulholland, Fraud Investigations Manager at Aviva, added, “This sentence should act as a deterrent to anyone thinking of profiting from fraudulently arranging low-cost motor insurance. Ghost brokers put motorists at risk by providing invalid insurance and, in many cases, those drivers are unaware they are driving without cover.”
The case highlights the growing issue of ghost broking, with Action Fraud reporting an average of two new cases per day in the past year. Victims of ghost brokers lose an average of £1,921 each. Jon Radford from the Insurance Fraud Bureau (IFB) commented, “Choudhary’s actions endangered the safety of other road users by allowing uninsured drivers to operate illegally on UK roads. We are committed to working with the police and insurers to eliminate fraud and protect genuine customers.”
The outcome of this case sends a strong message to fraudsters who exploit the insurance industry and highlight the importance of vigilance and due diligence by insurers to identify fraudulent activities before they can affect more people.
