“Catalogue of misdemeanours” sees broker banned

“Catalogue of misdemeanours” sees broker banned




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A North West London mortgage broker has been banned and fined by the FSA after the authority found that he had deliberately misled them.

Selvavinayakam Vigneswaran, the sole director of Futture Finance Limited (Futture), was banned from working in financial services after committing repeated mortgage fraud. The regulator also imposed the second highest fine ever recorded on a mortgage intermediary - £250,000.

Vigneswaran’s mortgage brokerage was investigated after the FSA received a tip-off from a lender in October 2007. The unnamed lender revealed to the authority that Vigneswaran had been removed from its panel of preferred intermediaries because it strongly suspected he had submitted applications to another lender that contained erroneous information.

As a result of this information, the FSA spoke to the second lender and became aware that there was ‘cause for serious concerns’.

The regulator’s investigation into the company revealed that Vigneswaran, the only approved person at the firm who was responsible for ensuring it complied with FSA standards, had “submitted three mortgage applications in his parents’ names containing false information about their income and employment.”

Furthermore, he was found to have “commissioned the creation of, then submitted, false payslips for his parents, submitted four applicants in his own name that contained false information about his own earnings and regularly submitted falsified information to lenders on behalf of his clients.”

The FSA has also revealed that after being struck off the lenders panel Vigneswaran fraudulently used the identity of his father to set up a new firm, Cherry Finance Ltd.

Tom Spender, the FSA’s head of retail enforcement, said: “Big or small, we will continue to take action against businesses that breach our rules to ensure the mortgage market is a safer place for anybody that engages with it.”

The regulator highlighted that £100,000 of the £250,000 fine relates specifically to Vigneswaran misleading the FSA.
 

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