Broker banned and fined for repeated mortgage fraud

Broker banned and fined for repeated mortgage fraud




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A London mortgage broker has been banned and fined £70,000 by the FSA for knowingly submitting false and misleading mortgage applications.

Grace Nmadibechi Ada Ukala was an FSA approved person and the director of Goldsparkle Consulting Services Limited, a small mortgage broker firm based in South East London.
She submitted five mortgage applications for herself supported by false and misleading income and employment information and also failed to disclose accurately her earnings from Goldsparkle to Her Majesty's Revenue and Customs (HMRC).
In one of her own mortgage applications from May 2005, Ms Ukala stated her income from the last three years was £77,410 in 2002, £80,726 in 2003 and £84,359 in 2004. 
However, according to HMRC records, Ms Ukala declared earnings of £19,877.23 for the tax year ending 5 April 2003, no earnings for the tax year ending 5 April 2004 and earnings of £7,323.86 for the tax year ending 5 April 2005.
It was also found that Ms Ukala misused funds that belonged to Goldsparkle to meet her personal mortgage repayments.
Margaret Cole, FSA director of enforcement, said: “This fine, which would have been £100,000 had Ukala not settled early, is aimed at deterring approved persons from getting involved in mortgage fraud. Her earnings, as stated in the mortgage applications, were considerably higher than the income she declared to HMRC. By knowingly submitting false and misleading mortgage applications, Ukala acted in a totally unacceptable fashion.”
The FSA has said that its work on mortgage fraud remains a priority in its campaign against financial crime.
The regulator has banned more than 60 mortgage brokers over the last three years and has pledged to continue banning individuals who demonstrate a lack of integrity.

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