FSA bans and fines mortgage broker GBP129,000 for involvement in mortgage fraud
7th July 2008The Financial Services Authority (FSA) has banned a mortgage broker and fined her GBP129,000 after finding she had been involved in numerous fraudulent mortgage applications. This is the first time the FSA has both banned and fined a mortgage broker for mortgage fraud.
Sadia Nasir was an FSA approved person and the director of a firm based in Ilford called London Mortgage and Financial Services Limited. The firm traded as House of Finance. This six figure fine is aimed at deterring approved persons from getting involved in mortgage fraud and also aimed at taking back illicit profits that she made.
Margaret Cole, Director of Enforcement FSA, said:
"Ms Nasir's actions were particularly serious and blatant, and she poses an immediate risk to lenders.
"We have banned a number of mortgage brokers and others this year in connection with mortgage fraud but the problem persists. We made a commitment last year to increase fines in the retail sector to act as a deterrent and this case marks a step change in the way we are dealing with mortgage fraud, in line with that commitment.
"We will continue with this new policy and intensify our crackdown on mortgage fraud. Perpetrators will increasingly find themselves facing bans, heavier fines and having to disgorge illicit gains."
The FSA found that Ms Nasir:
- submitted seven mortgage applications containing false information about her own employment and earnings supported by falsified documents, including payslips, financial statements and accountant's certificates;
- in four instances entered her own bank details on mortgage applications for clients; and
- deliberately withheld sections of an application form from FSA investigators, failed to disclose to the FSA information relating to a County Court Judgment made against her in September 2005 and failed to disclose the true extent of her assets in an authorisation application to the FSA.
