Brian Sims
Editor
Brian Sims
Editor
INNER LONDON Crown Court has granted Confiscation Orders against two males – namely Ikram Rafique and Mohammad Hamad – who were sentenced for their roles in a fake car insurance scheme.
Rafique (aged 38 of South Road in Romford) operated as a ‘ghost broker’, a term used to describe fraudsters who pretend to be legitimate insurance brokers. Rafique charged over 900 motorists a fee of up to £300 each to set up low-cost insurance policies. He provided false information to lower the cost of the premiums, in turn meaning that the policies were invalid.
Rafique’s cousin Mohammad Hamad (aged 32 of Ashley Avenue in Ilford) laundered the funds obtained by Rafique.
Following proceedings brought by the City of London Police’s Insurance Fraud Enforcement Department (IFED), the Confiscation Orders were granted on 7 March as follows:
*a Confiscation Order worth £250,000 was granted against Rafique. He was ordered to hand over his available assets, worth a total of £39,048, within three months or face 12 months’ imprisonment
*a Confiscation Order worth £126,608 was granted against Hamad. He was ordered to hand over his available assets, worth a total of £15,699, within three months or face nine months’ imprisonment
The Confiscation Orders handed to Rafique and Hamad remain payable until they are settled in full.
Suite of options
Detective Sergeant Alan Yau from the City of London Police’s IFED said: “The IFED will use its full suite of options to make sure that fraudsters don’t benefit from their dishonest actions. Should Rafique and Hamad have available assets in the future, we will make every effort to recover the outstanding amounts, thereby showing that selling fake insurance doesn’t pay.”
Yau continued: “We know that the rising cost of insurance premiums means people are always looking for a cheap deal, but it’s always important to check you’re buying from a legitimate source and that your policy is valid. While the offer of a cheap deal may be enticing, a fraudulent policy will end up costing you more in the form of a fine, points on your licence and having to cover the cost of a new and valid policy.”
Rafique sold fraudulent motor insurance policies from January 2016 to December 2018. He used a bank account opened under the name Qiuhong Chen to receive broker fees associated with arranging the fraudulent policies.
An investigation conducted by the IFED found that Rafique manipulated customer details to obtain cheaper quotes and then used his customers’ bank card details to pay for the policies, telling them that a ‘broker fee’ needed to be paid into the Qiuhong Chen bank account. The broker fee was usually between £200 to £300 per policy.
The IFED’s analysis of the Qiuhong Chen account found that it received payments worth a total of £302,036 over a period of 24 months.
Number of bank accounts
Rafique laundered the money through a number of bank accounts, as well as transferring funds to a Money Service Bureau and laundering the proceeds out of the UK. The victims’ money was also transferred into accounts held by Hamad.
Rafique was found guilty of acting as an unlicensed broker and money laundering following a trial at the Inner London Crown Court. He was sentenced on 31 July 2023 to two years’ imprisonment, suspended for two years, and ordered to carry out 220 hours of unpaid work.
Hamad was found guilty of money laundering during the same trial. He was sentenced to 15 months’ imprisonment, suspended for two years, and ordered to complete 180 hours of unpaid work.
