Sunderland family made £2m through website tricking people into paying for European health cards

A family made more than £2million using misleading websites to trick people into paying for European Health Insurance Cards (EHIC), a court has heard.

The cards were freely available from the NHS website.

However, brothers Damien Sartip Zadeh, 32, and Dale Sartip Zadeh, 35, both from Sunderland, were involved in an elaborate scam using a computer programme to push their misleading websites to the top of internet search results to deceive consumers into needlessly paying for them.

The websites were, in fact, a front for a clever "cut and paste" job, with customers’ details simply being copied over into the NHS website form.

The brothers were jailed for nine and a half years and eight years respectively after being found guilty of fraudulent trading and laundering the proceeds, between February 2013 and October 2019.

It followed an investigation was led by the National Trading Standards eCrime Team, which is hosted by North Yorkshire Council and City of York Council.

Damien, of Angram Drive, Sunderland, and Dale, of Polperro Close, Ryhope, were directors of the companies behind the misleading websites - www.europeanhealthcard.org.uk and www.ehic-cards.org.uk.

Damien was also convicted of engaging in aggressive commercial practices after threatening consumers who complained to prevent them pursuing refunds.

They have both been disqualified from being directors for 10 years.

Their parents, Diane Sartip Zadeh (aged 60) and Mahmud Sartip Zadeh (aged 62) both of Angram Drive, Sunderland, were found guilty of money laundering and were sentenced to two years, suspended for two years.

Both are also required to attend 10 activity rehabilitation days.

Mahmud Sartip Zadeh was also ordered to carry out 200 hours of unpaid work and disqualified from being  a director for five years.

Test purchasing of an EHIC by National Trading Standards through www.ehic-cards.org.uk uncovered a range of misleading features on the site that undermined the NHS service and added no value for consumers.

The site claimed to provide a "check and send" service, as well as being able to fast-track applications and provide a 24/7 service.

The investigation found that the colour and background of the site was similar to the NHS and Government Digital Service websites, which could mislead consumers into thinking they were using official channels.

The defendants, who had previously been warned by both the Advertising Standards Authority (ASA) and Sunderland Trading Standards to stop, also relied on a disclaimer that was buried in the footer text, was the last paragraph on the page and was not prominent enough to be recognisable as a disclaimer.

Upon realising they had been duped into paying for a free service, many victims tried to complain but were met with hostility and aggression.

Requests from victims to cancel or receive a refund – which they were legally entitled to – were refused and often followed-up with the threat of legal action if they attempted to claim a chargeback from their bank or credit card company.

Lord Michael Bichard, Chair of National Trading Standards, said: “This was a case of serious and organised fraud, where large sums were taken from unsuspecting, ordinary, busy people and the sites were a scam from start to finish.

“National Trading Standards and local Trading Standards teams continue to remove misleading websites and the successful outcome of this case sends a clear message to criminals that deceiving consumers will not be tolerated."

Ruth Andrews, regional investigations and eCrime manager at City of York Council, added: “Despite multiple warning flags being raised with these defendants - including a previous arrest and warrants at their addresses and receiving written warnings about their future behaviour - they brazenly persisted with their fraud.

"They were determined to continue, believing they would never face justice. This case has shown we have equal measures of tenacity to protect consumers from such frauds and pursue cases to a conclusion.”

Advertising Standards Authority chief executive Guy Parker said: “It sends a clear signal to bogus operators behind misleading websites that fraudulent practices will be met with the force of law.

“The scale of and the aggressive practices behind this scam are a reminder to everyone about the need to be vigilant when making online purchases. These scams can affect anyone, from the vulnerable to the tech savvy.”

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