Anonymous call that led to first conviction of a ‘ghost broker’ in history of State
Man is facing eight months in prison for selling forged insurance
A ‘GHOST broker’ who sold fraudulent insurance policies to innocent motorists is the first person to be convicted for such an offence in the history of the State.
Martin Hanudel (27) will spend eight months in jail after the Garda Special Investigations Unit (SIU) uncovered how he was selling forged and invalid discounted insurance to people on Facebook.
An anonymous call to the Garda Confidential Line in October 2016 sparked an investigation which has resulted in more than a dozen files being prepared for the Director of Public Prosecutions.
Hanudel is considered by gardaí to be a “small cog in a big wheel”, but they hope his conviction will act as a deterrent for the other ghost brokers currently operating across the country.
Garda George Thurlow said there were currently thousands of policies under investigation by the Special Investigations Unit for being fraudulent. Ghost brokers could end up costing insurers up to €23m and be the reason motorists are slapped with another unjust premium hike.
Operation
Ghost brokers claim to have a commercial relationship with insurance companies and falsely assert they can procure insurance at a discount.
Hanudel was described in court as “the face of the operation”, not because he was the head honcho, but because he didn’t even bother to use an alias on Facebook when advertising the dodgy policies.
“There was no attempt whatsoever to disguise himself,” Garda Thurlow told the Irish Independent.
“He was advertising them in Slovakian Facebook groups and used his actual phone number and name, so we were able to identify him easily enough.
“I think he believed that as this type of fraud or scam had never been properly investigated in this jurisdiction before, he thought he wouldn’t be caught. This type of insurance fraud is on the rise in the UK and Ireland.”
Hanudel, of Tubberclaire Meadows, Athlumney, Co Meath, pleaded guilty to 12 charges of fraud under Section 6 of the Criminal Justice Act in relation to the sale of the fraudulent motor insurance policies, worth about €11,000.
He charged each person a fee of €500 and then obtained policies through underwriters after giving false information.
He gave incorrect details regarding no claims bonuses and then sold the policies to foreign nationals from Romania and Slovakia.
The person who tipped off gardaí was concerned he was “ripping off ” fellow Slovaks.
His family moved to Ireland from Slovakia in the early 1990s and he has spent most of his life in Navan.
Trim Circuit Court heard how he worked as a translator for people in hospitals, garda stations and court for a brief period of time. He also had aspirations to join the army when he was younger.
Garda Thurlow revealed how Hanudel has since paid €15,000 in compensation to the National Rehabilitation Hospital in Dún Laoghaire, Dublin, which provides s pecialist services to people who have acquired disabilities through accident or injury. Judge Martina Baxter sentenced Hanudel to four years’ jail, with 40 months of that suspended.
In her view, the offence went “to the integrity of the insurance process” and she described the operation as “premeditated”.
The fact he had taken out an insurance policy through a ghost broker and supplied false details about his date of birth while on bail for other offences was an aggravating factor, she said.
He previously pleaded guilty to the possession of four stun guns which were delivered to his home in February 2016.
During a search of his home, gardaí found six gas canisters, knuckle dusters and cannabis worth €150.
“I suppose it demonstrates the seriousness that the courts have taken in relation to these ghost broking offences,” Gda Thurlow added.
“I’m happy that the Special Investigations Unit was able
He charged each person €500, then obtained policies after giving false information
to investigate this crime, bring the person before the courts and he was dealt with appropriately.
“It is the first prosecution and sentence of its type in this State, and hopefully going forward more will follow.”
In the UK, a number of people have been jailed for ghost-broking offences.
Insurance brokers also fear the Covid pandemic is providing the perfect opportunity for fraudsters. AA Insurance services warned: “With financial pressures being felt by households across the country, many are trying to find ways of saving money.
“Insurance premiums are one area that people regularly try to make savings on, and the AA fears that more drivers could unintentionally fall foul of fraudsters.”
David Coughlan, managing director of the AA, said: “Fraudsters like to pounce when people are at their most vulnerable.
“Unfortunately, a global pandemic mixed with economic pressures creates the perfect storm. It’s the sort of scam that can give you nightmares and we don’t want people to fall into that trap.”