<
p>A broker who made tens of thousands of pounds from selling invalid insurance has been jailed.
Jeffrey Derek King, 30, High Road, Chadwell Heath, was jailed for two years at the Old Bailey yesterday after being found guilty of acting as a ‘ghost broker’.
King posed as an insurance broker promoting low cost interim car insurance by the name of ‘Richard Dean’ on Gumtree. He made £65,000.
It was heard that over the course of two years King had called insurer RSA over 50 times using different identities, withdrawing insurance providing seven days of free cover for a new vehicle.
King then went on to sell these polices on at a profit to his respondents on Gumtree, after altering details. The victims were even provided with fake policy documents.
However, these policies were instantaneously invalid due to incorrect information being provided to RSA at the point of sale.
“‘Ghost brokers’ cost the insurance industry millions each year, inflate motorists’ insurance premiums and put an untold number of drivers unknowingly into the role of law breakers as soon as they get behind the wheel with no insurance,” said DC Mohammed Darr, who led IFED’s investigation.
“King being put behind bars provides further proof that selling invalid car insurance is a crime with consequences and that IFED and insurers will not rest until the perpetrators are brought to justice.”
The investigation commenced in 2012 when the RSA uncovered 50 policies linked to the same mobile number.
Detectives at City of London Police’s Insurance Fraud Enforcement Department (IFED) found two bank accounts that victims were paying money into and cash was then swiftly withdrawn by King.
King was later arrested in June 2013, was charged and found guilty of three counts of fraud by false representation and one count of money laundering.
King was sentenced to two years in jail for money laundering: six months for the first count of fraud by false representation, six months for the second, and 15 months for the third. All are to run concurrently.
Adele Sumner, Head of Fraud Intelligence and Strategic Development at RSA, added: “The fraudulent scheme King set up was disgraceful and we are pleased with the sentence he has received. King was acting as a fraudulent insurance advisor which resulted in several people driving uninsured on UK roads, putting innocent victims in harm’s way.
“Protecting customers and ensuring they do not become victims of fraud is something we take extremely seriously and we will continue to tackle this issue and fight against fraud.”
The investigation team has also started financial confiscation proceedings in order to return funds to victims.
A broker who made tens of thousands of pounds from selling invalid insurance has been jailed….
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