Fraudulent five banned by FSA

Fraudulent five banned by FSA


The Financial Services Authority (FSA) has banned five brokers for mortgage fraud and fined one of them £104,000.

Mark Thorogood, who traded as Property Park Mortgages, has been banned and fined for submitting fraudulent mortgage applications. He inflated his and his wife’s incomes in a mortgage application, as well as providing fraudulent information about a family member in a separate application.

Darren Button, a former advisor at the firm, was also banned for entering false income and employment information. On top of this, Mr Button was aware of Mr Thorogood’s indiscretions but failed to report him as he thought “it didn’t seem to be a huge problem.”

Daniel Djaba, who traded as DPD Consultancy Services (DPD), has been banned for failing to have appropriate systems in place resulting in his firm being exploited in a mortgage fraud. He failed to gather evidence to support income declarations, which led to customers submitting applications that contained false information.

Adeolu Adeosun, a former advisor for DPD, was also banned for misleading the FSA in an interview, as well as inflating his income in a mortgage application by using gross instead of net.

Waheed Hanif, who traded as The Broker Group, has also been banned. His crime was failing to inform the FSA about a previous conviction for “obtaining a money transfer by deception” when he applied for FSA authorisation.

Margaret Cole, the FSA’s managing director of enforcement and financial crime, said: 'Mortgage intermediaries must adhere to our rules to ensure that consumers are treated fairly and protected from excessive risk, and reduce the possibility that lenders are exposed to fraud.

'For those that don’t follow the rules the consequences are very serious. Not only might they receive a fine and a ban, but - by no longer being able to work in regulated services - they also face losing their livelihood.'

This latest spate of prohibitions brings the total number of mortgage intermediaries banned since December 2006 to 101, 95 of which have been for failings in relation to mortgage fraud. Many have been fined as well as banned, which now total over £2.5 million. There are more trials scheduled for 2011.

Margaret Cole added: 'This is a significant milestone in our efforts to stop dishonest people from working in regulated financial services. By working closely with lenders and police forces, the FSA has successfully targeted numerous dishonest mortgage intermediaries and we have taken decisive action against them.

'We will continue to gather intelligence and work with other agencies to deal with dishonest intermediaries. We will use all the tools available, including unannounced visits and search warrants, where appropriate, and we will report criminal activity to the police.

'Looking ahead, changes proposed in the Mortgage Market Review will help our fight against mortgage fraud, including making it the lenders’ ultimate responsibility for assessing affordability and requiring income verification.'

 By Frank Burbage

Leave a comment