£650,000 confiscated from jailed mastermind of UK’s biggest fake car insurance scam
26 June 2015
The Old Bailey has ordered for £658,460.84 to be confiscated from a ‘ghost broker’ currently imprisoned for masterminding what is believed to be the UK’s biggest fake car insurance scam.
Danyal Buckharee must repay the confiscated amount as compensation to his victims within six months or face more five more years behind bars.
The action came yesterday (25 June 2015) after City of London Police’s Insurance Fraud Enforcement Department (IFED) applied to the court to recover the profits of his crimes in 2013 after its investigation saw him jailed for three years. This was on top of four-and-a-half years given for a separate fraud investigated by the Metropolitan Police Service.
Buckharee duped 600 drivers into buying worthless car insurance between May 2011 and April 2012, pocketing £658,460.84. He created four websites offering ‘cheap’ car insurance – Aston Midshires Insurance, Astuto Insurance, Car Insurance Warehouse and First Car Direct Insurance.
Aston Midshires Insurance first came to the attention of the Motor Insurers’ Bureau (MIB) in late 2011 when the bureau began receiving complaints from drivers who had been stopped by police for driving without insurance. The MIB passed the complaints onto the Insurance Fraud Bureau (IFB) for further examination and when IFED launched in January 2012, the complaints were handed to the new unit.
Ben Fletcher, Director of the IFB, said: “This was a calculated crime which left hundreds of people severely out of pocket and unwittingly exposed to the dangers of driving without insurance. Unfortunately, the activities of Danyal Buckharee are not an isolated incident as the IFB is now managing 24 cross-industry ‘ghost broking’ investigations and is working with insurers and 10 police forces, including the Insurance Fraud Enforcement Department, to help bring these fraudsters to justice.”