Insurance #broker used stolen #IDs in #fraud #scheme: DA

A Huntington resident with a business in Hicksville is charged with using stolen identities to illegally obtain auto insurance policies. The scheme was design to obtain policies either for clients who couldn’t otherwise afford coverage, or to secure lower rates for drivers, authorities said Tuesday.

Sardar Nasarullah, a licensed insurance broker, and his company, Commercial Business Insurance Brokerage Corp., are charged with fraudulently obtaining corporate automobile insurance policies from a number of companies, which prompted at least a $40,000 loss for the insurers, according to Nassau County District Attorney Madeline Singas.

The seven known victims of the scheme did not realize their personal information had been compromised, authorities said.

“Sardar Nasarullah and his company are accused of stealing the identities of unsuspecting customers and racking up thousands of dollars of insurance policy charges in their name,” DA Singas said. “This case illustrates the importance of protecting sensitive personal information that could be used by thieves to commit identity theft and I encourage every Nassau resident to monitor their credit reports regularly to spot any suspicious activity.”

From June 2006 to March 2014, Nasarullah and his company allegedly took the stolen identities to secure corporate policies rather than personal policies, which are subject to higher rates and costs.  Toward this end, Nasarullah and his company allegedly filed fake policy applications to the auto insurance companies, naming identity theft victims as the vehicle operators, according to Singas.

Nasarullah and his company allegedly listed the identity theft victims as the president of corporations, which were created solely for fraudulent purposes, but were not fraudulent in and of themselves, according to the DA’s office.

Nasarullah and his company are charged with fraudulently obtaining corporate automobile insurance policies from various companies, including AutoOne Insurance, National Liability & Fire Insurance, Farm Family Casualty Insurance, Lincoln General Insurance, Progressive Northern Insurance and Merchants Mutual Insurance.

Nasarullah’s attrorney Frederick K. Brewington said his client has pleaded not guilty, according to published reports.

Nasarullah is due back in court Jan. 5. If convicted of the top count he faces a maximum of 2-1/3 years to seven years in prison. The business, which is also due back in court on Jan. 5,  faces a fine of up to $10,000 or double Nasarullah’s gain from the alleged crime.

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