Inside the World’s Longest Running Fraudulent Flag Registry Scheme

An investigation by the Center for Advanced Defense Studies (C4ADS), in partnership with the Financial Times, has uncovered what is believed to be the most expansive and longest-running network of fraudulent ship flag registries in modern history.

At the center of this scheme is Indian national Suniel Kumar Sharma, who, along with a group of associates, has allegedly overseen fraudulent flagging operations for at least a decade. Evidence suggests that this network is responsible for more than half of all fraudulent ship flags currently identified worldwide.

How the Scheme Worked

Legitimate flagging requires ships to obtain official permission from a recognized state, binding them to that nation’s laws and oversight. Fraudulent registries bypass this process by falsely claiming state authorization to issue flag certificates. Ships flying such flags are legally “stateless” and in direct violation of international treaties.

C4ADS reports that Sharma’s network issued hundreds of counterfeit certificates across as many as 12 nations and territories — including the uninhabited South Pacific island of Matthew Island. These false documents allowed vessels, including dozens under international sanctions, to operate under the appearance of legitimacy, shielding them from scrutiny.

Industry Reaction

The revelations have shocked the maritime community. For years, the network evaded detection, exploiting gaps in regulatory oversight. Its exposure underscores the risks posed when private individuals manipulate international shipping norms to enable illicit activity.

Horizons: A New Investigative Tool

The investigation also coincides with the launch of Horizons, a new C4ADS-built platform designed to assist investigators in uncovering hidden links in complex networks. Horizons combines vast datasets — from corporate records and property ownership to sanctions lists — into one of the largest searchable repositories of public information available.

By structuring and modeling this data, Horizons enables investigators, journalists, and researchers to identify patterns and connections that may otherwise remain hidden. C4ADS hopes that both this investigation and the launch of Horizons highlight the value of collaborative, data-driven approaches to tackling systemic vulnerabilities in global industries.