Man sentenced for false insurance claims worth over £40,000


The man lied about details of items stolen following a burglary at his home, including Asian gold jewellery and an Apple Mac Pro computer

RSA undertook an internal investigation and discovered a number of inconsistencies with the man’s claims

The City of London Police arrested the man and found the jewellery following a search warrant, which the man had reported as stolen

On 22nd November 2017 a man was sentenced for making inflated insurance claims worth over £40,000, after he exaggerated details of items stolen from his home following a burglary, including Asian gold jewellery and an Apple Mac Pro computer.

After an investigation by the City of London Police’s Insurance Fraud Enforcement Department (IFED), Mahmood Khan, 44, of High Wycombe pleaded guilty to two counts of fraud by false representation and four counts of making articles for use in fraud, and was sentenced at Aylesbury Crown Court to nine months imprisonment, suspended for two years. He was also fined £9,000 for all six counts of fraud and ordered to pay £1,000 in compensation to insurance company RSA.

Burglary reported and insurance claims submitted

The burglary was first reported to Thames Valley Police on 1st April 2014, and on the same day it was also reported to Khan’s home insurance company, RSA. RSA then appointed LMG Jewellery and loss adjustor Crawford & Company to handle the claim on their behalf.

During a phone call made by LMG to verify the items that were being claimed for as stolen in the burglary, the phone handler made a mistake and added a loss list from a separate customer onto Khan’s list of stolen items. The extra items included various pieces of Asian gold jewellery, three Tresor bracelets, a Raymond Weil watch, an eternity ring and a diamond ring.

LMG got back in touch on 7th July 2014 to state that there had been an error on the claim regarding the loss list, but in response were told to keep the claim as it was. In a report prepared by LMG for RSA, they highlighted a number of issues with the description and value of the items being claimed.

Crawford’s also prepared a report outlining their findings - they detailed how an additional Mac Pro computer worth £5,699 was stated as stolen after being bought on 8 December 2013, but later discovered that it wasn’t actually available on sale to the public on that date.

Man questioned about claims

On 1st August 2014, an RSA investigator visited Khan to raise the issues around the amalgamation of the loss list with LMG. Khan provided a bank statement which matched the date he claimed he’d purchased the Mac Pro computer on and for the same price, however the retail store where the computer was allegedly purchased from confirmed that the order number on the invoice supplied did not relate to the alleged stolen computer.

Khan was then presented with the loss list of jewellery and he admitted that some of the items hadn’t been stolen. The investigator also visited the jewellers Khan had used and they confirmed that the valuation supplied in support of the claim would have been given after the burglary date, and that a valuation around the date of the burglary would have been different.

On 1st December 2014, the investigator acting on behalf of RSA wrote to Khan and voided the insurance policy. They received no challenge to the voiding of the policy. The case was then referred to IFED, and on 12th June 2015 Khan was arrested and a subsequent search warrant was carried out at his home address.

Police find fake bank statements and jewellery

A laptop was seized and following a download of all of the files on it, police found the suspected fraudulent bank statement and invoice for the allegedly stolen Mac Pro computer. These were found in PDF and word processor format, suggesting that they had been edited at some stage. Police also discovered that these documents were created on 16 June 2014, over a month after the reported burglary.

Police also uncovered a large amount of Asian gold jewellery in a suitcase underneath six other cases, which matched the description of the items allegedly stolen in the burglary.

City of London Police Detective Constable Aman Taylor, who led the Insurance Fraud Enforcement Department's investigation, said:

“While Khan was the victim of a genuine burglary, it was no excuse for what he went on to do, which is to try and deceive his insurance company by making grossly exaggerated claims about the details of what was stolen.

“No matter what the situation people find themselves in, they should never turn to crime to try and better their situation. Thanks to the helpful information supplied by RSA, Crawford’s and LMG, and the hard work of our Insurance Fraud Enforcement Department, Khan has been dealt the punishment he deserves and taught the valuable lesson that crime never pays.”

John Beadle, UK Head of Financial Crime and Counter Fraud at RSA, said:

“This is an example of a policyholder grossly exaggerating the loss that arose from a genuine claim – hoping to get thousands of pounds from RSA to which they were not entitled. We had no hesitation in reporting this case to IFED and the arrest and prosecution of this gentleman should serve as a reminder of the potential consequences to those who might be tempted to commit insurance fraud by exaggerating their claim in this way.”