Couple jailed for fraudulent broking

MCE Insurance

Elina Jaksone, 36 and Gagik Kyriacos Manucharyan, 40, have been jailed for setting up a fraudulent ghost broking business that made them almost 1m.

The couple were operating a fake motor insurance scheme offering cheap insurance and providing insurers with false and misleading information. HM Revenue and Customs (HMRC) discovered what the pair from Kent were up to when they realised £920,000 in earnings had not been declared and that £340,000 were owed in taxes.

The couple would contact insurers posing as their clients and giving limited information. This allowed the clients, who were mainly Eastern European, to buy cheaper policies but the lies meant often policies were void. They earned around £100 a policy and over time built this to the sum of £920,000.

Latvian Jaksone and Cypriot Manucharyan used their stolen earnings to buy a £365,000 property, fund private education and purchase two Mercedes. They also went on a number of expensive holidays to destinations including Jamaica, Mauritius, Mexico and Tokyo.

The pair once caught were arrested for five years each respectively.

HMRC assistance director David Margree said: "Jaksone and Manucharyan cheated honest, law-abiding people, spending their ill-gotten gains on a lifestyle that many of us can only dream of. They also cheated their customers by providing them with inadequate insurance policies."

Quotes and figures taken from Insurance Times

15.04.13 - MCE Insurance

Facebook Twitter LinkedIn