Laundrette fraudsters sentenced
Two fraudsters involved in an ‘elaborate’ ghost broking operation have received custodial sentences for conspiracy to defraud insurance companies following a joint investigation between the Insurance Fraud Bureau (IFB), the City of London Police’s Major Proactive Crime Team and IFB’s insurer members.
The two men were arrested at their Tottenham launderette in February 2017 after providing unregulated insurance to the local community, which included a local Albanian drug gang. Visitors would leave the launderette with fraudulent insurance cover obtained using fake names and addresses. It also emerged the fraudsters were forging no claims discount letters in order to obtain cheaper insurance.
IFB worked closely with the Crime Team throughout the investigation, linking over 100 policies to the scam which eventually led to the arrests. IFB also revealed thousands of insurance quotes that they were able to connect directly to both men.
When the Crime Team carried out their search warrant, they were able to seize 263 no claims discount (NCD) letters. IFB and its insurer members were able to prove that at least 172 of the documents were fraudulent.
Discussing the case, Jason Potter, IFB’s head of investigations commented, ‘This case goes to demonstrate that organised insurance fraud can often be linked to other criminal activity and this behaviour must be stopped. We remain committed to stamping out insurance fraud and hope that today’s sentencing serves as a stark warning to would-be criminals that fraud doesn’t wash with us, that they will get caught and they will get punished.’
