A former employee in the marine insurance sector diverted millions in insurance payments into his own accounts over a period of several years. As a result, he has now been sentenced to seven and a half years in prison.
The 44-year-old, who previously worked for the company V Scope Risk Management, was recently convicted by Southwark Crown Court of fraud by abuse of a professional position, according to the City of London Police. Between April 2013 and November 2020, he had diverted a total of 34 insurance payments relating to 15 different claims. The losses amounted to around £481,000 and just under $4 million.
The convicted fraudster had been employed in the marine insurance sector since 2011 and was responsible, amongst other things, for handling claims relating to ships. He exploited his position to persuade insurers to transfer compensation payments to accounts under his control.
Shell companies and forged payment orders
To this end, he set up several companies whose names closely resembled those of real firms in the shipping and insurance sectors. He also set up email addresses and internet domains modelled on the websites of legitimate companies. In this way, he was able to create forged payment instructions that appeared authentic to the insurers involved.
The fraud was uncovered in 2020 after an underwriter noticed suspicious bank details whilst processing a claim. A subsequent review of previous transactions revealed further irregularities. Sharma was suspended in November 2020 and later dismissed without notice.
“This was a targeted fraud carried out over a number of years by an individual who exploited his position of trust within a specialised industry,” explained investigator Andrea Bakewell of the City of London Police.
Porsche and luxury holidays financed with insurance payouts
The investigation revealed that the manager used the misappropriated funds to purchase, amongst other things, a Porsche 911 Carrera 4S worth more than £115,000, an Audi RS5 and a Cartier diamond ring worth £15,700. He also used the money to fund holidays, hotel stays and other personal expenses. Part of the funds was also used to repay a mortgage on a property in London.
Investigators had already obtained a court-ordered freezing order in February 2021. At that time, more than $1.89 million had been identified in the convicted man’s accounts. Further assets were also identified.
According to the police, proceedings are now underway to confiscate the assets derived from the fraud. The aim is to recover as much money as possible and return it to the companies that suffered losses.
