Fraudfather found guilty of £250,000 mortgage scam

Fraudfather found guilty of £250,000 mortgage scam




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A Glasgow man, dubbed the Fraudfather, has admitted mortgage fraud worth £250,000.  

The patriarch of a notorious Glasgow family, Edward Lyons, 52, is purported to be in feuds with other dangerous families and has a history of crime.

 

The latest involved him buying property in East Kilbride and Cumbernauld by self-certifying on mortgage applications.

 

Lyons claimed he was self-employed with an income of up to £48,000 a year when in reality he worked at a community initiative earning £20,000.

 

The criminal worked at the controversial Chirnsyde Community Initiative until 2006 when the centre was closed after a series of shootings nearby led to the death of his nephew, Michael, 21 and serious injuries to his son.

 

In Glasgow Sheriff Court Lyons pleaded guilty to defrauding Preferred Mortgages out of £119,000 between May 2003 and August 2005 to buy a house in East Kilbride.

 

Having sold the property on, the Fraudfather went on to give his daughter £30,000 out of the £74,000 profits for her to buy a tanning salon in Dundee.

 

However, mortgage providers didn’t lose out as Lyons had paid the mortgage on the East Kilbride house in full when he sold it and has kept up-to-date with payments on his current home.

 

Lyons also pled guilty to defrauding £140,000 from HBOS between June 2004 and January 2005 to buy his current home in Cumbernauld.

 

This isn’t Lyons first brush with the law, as well as being having family connections to the shootings, he was cleared of attempted murder in 2001 and had £63,000 seized from his home in 2004 for alleged drug dealing.

 

However, a Glasgow City Council spokesperson defended the centre this week saying: "There was never evidence of criminal activity at the Chirnsyde Centre."

It was only after Lyons applied for a car loan and admitted to working at the Chirnsyde Community Initiative instead of being self-employed that suspicion was raised.

 

Prosecuting, Selena Brown said: "The mortgage did not require proof of income. If they had known he was on a lower income the application would not have been granted."

 

She added: "The accused stated on the application that he was self-employed, earning £48,000."


Sheriff Robert Anthony deferred sentence until next month for background reports and Lyons was released on bail.

 

Director of Operations, Scott Pattison, said: "Edward Lyons failed to disclose accurate information to mortgage companies in a deliberate ploy to defraud them of money. This involved a gross abuse of trust.

 

"The Crown Office specialist National Casework Division is committed to working with other agencies to ensure that financial crime is investigated robustly and where there is sufficient evidence, that perpetrators of these crimes are prosecuted.

 

"We aim to ensure that crime does not pay."

 

The Crown will be issuing a confiscation order to recover the proceeds of Lyons’ crimes.

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