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Business Director sentenced to 12 months imprisonment for multiple fraud offences

16 October 2017

A seemingly legitimate businessman has been sentenced to 12 months imprisonment after being found guilty of playing a role in a large-scale crash for cash scam.

This sentencing marks the end of the second phase of a significant crash for cash investigation between the Insurance Fraud Bureau (IFB), its insurer members and Metropolitan Police.

The conviction forms part of a ‘spin-off’ investigation by the Metropolitan Police which focused on the activities of KHA Hire Ltd and its director, Shafakat Ali Khan. KHA Hire Ltd is a hire company formerly based in Watford which rents and leases vehicles to the public and has been abusing the services they offer by submitting multiple fraudulent insurance claims for financial gain.

The fraud was exposed when intelligence provided to the IFB by the Metropolitan Police led to the Police officially establishing a dedicated standalone investigation into the suspicious activities of Khan and KHA Hire Ltd. It was found that Khan was ‘cross-hiring’ his vehicles, meaning the company was claiming that a car has been hired out to a number of different individuals for the same period of time or that two different hire agreements were issued for the same vehicle, which is not possible. Metropolitan Police found evidence that KHA Hire Ltd was ‘cross-hiring’ their vehicles in order to make multiple claims to insurance companies, from separate claimants, for the same hire vehicle at the same time.

This investigation into Khan and KHA Hire Ltd follows the original investigation which concluded in December 2016 after 19 fraudsters were found guilty for their part in the crash for cash scam, estimated to be worth £1million. The gang were found to be deliberately crashing into innocent members of the public between 2009 and 2014. The organisation at the heart of this scam, SAS Accident Management Limited, had then been making fraudulent claims to insurers, inflating their value through storage and hire costs.

Jason Potter, Head of Investigations at the Insurance Fraud Bureau (IFB), said: “The complexity of this case highlights that fraud is a complicated issue that the industry and the police are committed to combatting. Fuelled by greed, fraudsters will try everything imaginable to make some extra money for themselves, irrespective of the impact on others, because ultimately it is the honest premium paying motorist who foots the bill.

“This sentence is another great outcome for the industry, as we continue to gain traction following our milestone 500th conviction in June. This result further serves to highlight the very real message that committing fraud can, and will, result in prosecution.”

Members of the public can play their role in fighting back against ‘crash for cash’ scams and other types of insurance fraud by reporting what they know to the Cheatline. The Cheatline is a free service that enables members of the public to anonymously report information or suspicions about insurance fraud by calling 0800 422 0421 or reporting online at www.insurancefraudbureau.org/cheatline. All information provided to the Cheatline is treated in the strictest confidence.

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