A 'ghost broker' who fleeced unsuspecting motorists and left them without valid car insurance has been convicted. Police said Hafiz Mohammad, 30, posed as a legitimate broker, but in reality was 'out to make a quick buck' at the expense of vulnerable Sudanese nationals living in the UK, many of whom didn't speak English as their first language.
Six each paid Mohammad, a fee of between £120 and £180 to arrange insurance. A seventh gave him £1,016 in the belief they were paying for a full years' insurance.
But police said they were unaware Mohammad, of Polygon Street, Ardwick, would set up the policies using false information to reduce the premiums, leaving them without valid insurance.
He pleaded guilty at Manchester Crown Court on December 14, 2023, to eight counts of fraud by false representation. At a sentencing hearing on Monday, he was jailed for 10 months, suspended for 12 months, and ordered to complete 150 hours of unpaid work. A judge also ordered him to pay compensation to the victims.
Detective Constable Deborah O'Loughlin-Whitby, from the City of London Police’' Insurance Fraud Enforcement Department (IFED), said: "Ghost broking can often be perceived as a victimless crime, but this case shows otherwise. Moving to a new country can be daunting, particularly when it comes to practicalities like setting up car insurance.
"Mohammad's victims thought that they had found a legitimate broker. In reality, he was out to make a quick buck at their expense and left them without legitimate insurance.
"This can end up costing victims more in the long run in the form of a fine, points on their license, their car being seized, and having to cover the cost of a new, valid policy.
"We urge people to be wary of cheap deals on social media and via messaging apps. If you’re unsure whether an insurance broker is legitimate, check the British Insurance Brokers’ Association or Financial Conduct Authority website for a list of all authorised brokers.”
The case was referred to the City of London Police in August 2019 by LV=General Insurance, whose fraud team identified six motor insurance policies that it suspected had been taken out using false information.
This included using an older named driver, changing the details of the insured vehicle and lowering the mileage, all unknown to the victims. Enquiries with the Insurance Fraud Bureau revealed that a second insurer, esure, had identified multiple policies that had been taken out from Mohammad’s residence.
IFED officers and the LV=General fraud team linked Mohammad to a total of 13 fraudulent policies.
Ben Fletcher, Director of Financial Crime at LV= General Insurance, said: "We’re working hard to proactively detect and disrupt the issue of ghost broking to help protect victims and innocent motorists. This crime is incredibly serious as it leaves motorists unknowingly uninsured and takes advantage of vulnerable people who think they’re doing the right thing.
"We welcome tougher regulations across social media platforms through the Online Safety Bill to protect vulnerable people and prevent the continued rise of ghost broking. Our referrals of these cases to the police have risen significantly over the last few years and we're determined to tackle it. This sentencing should send a warning to fraudsters that we will act and bring them to justice."
