A Hicksville-based insurance broker bilked insurance companies out of more than $40,000 using stolen identities to submit false claims during a 10-year period starting in 2006, prosecutors said Tuesday in announcing his arrest.
At least seven people were victimized in the scheme by Sardar Nasarullah, 62, of Huntington, said Nassau County District Attorney Madeline Singas in a statement.
Nasarullah appeared Monday for his arraignment before Nassau Judge Paul Meli. Nasarullah faces two counts of third-degree grand larceny, two counts of third-degree insurance fraud, five counts of first-degree identity theft, three counts of second-degree identity theft, four counts of first-degree falsifying business records and first-degree scheme to defraud.
He was released on his own recognizance and is scheduled to be back in court on Jan. 5, Singas said.
Nasarullah is facing up to 2 1⁄3-to-7 years in prison if convicted.
“At this point Mr. Nasarullah has pleaded not guilty and will be fully engaged in addressing all of his rights,” said Hempstead attorney, Frederick K. Brewington, who represents the broker and his company, Commercial Business Insurance Brokerage Corp.
Charges were also filed against Nasarullah’s company, Singas said. Those charges include third-degree grand larceny, third-degree insurance fraud, five counts of first-degree identity theft, fourth-degree grand larceny, fourth-degree insurance fraud, first-degree scheme to defraud and four counts of first-degree falsifying of business records.
The business faces fines if found guilty.
“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,” 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.”
Singas said that from June 22, 2006, to March 4, 2016, Nasarullah, a licensed insurance broker, and his business, used stolen identities to defraud auto insurance companies “by obtaining corporate policies instead of personal policies which carry higher rates and costs.”
To accomplish this, Singas said, Nasarullah and his company “allegedly submitted fake policy applications to the auto insurance companies, naming identity theft victims as the vehicle operators.”
The defendants also “allegedly listed the identity theft victims as the president of the corporations they had created.”
Those corporations were created “solely for fraudulent purposes,” but were not fraudulent themselves, Singas said.
She said the “seven known victims” were “unaware that their personal information was being used.”
Nasarullah “allegedly perpetrated this scheme to obtain insurance” for customers who could afford it — or, in some cases, to obtain “lower rates for drivers,” Singas said.
The result was a loss of “at least $40,000” to insurers, she said.
The case was referred to the Nassau district attorney’s office in August 2016 after an investigation by New York Automobile Insurance Plan’s special investigations unit, Singas said. During prosecutors’ investigation, Singas said, they discovered many of the identity theft victims “may have provided personal information to the defendant at an insurance reduction course” offered in Hicksville.