FSA bans East London mortgage broker for fraud
3rd July 2009The Financial Services Authority (FSA) has banned Hornchurch-based mortgage broker Abdul Karim for submitting a mortgage application for himself that was based on false information about his income.
Margaret Cole, FSA enforcement director, said:
"Mortgage fraud poses a serious risk to the financial system, so we are continuing to take action against mortgage brokers who abuse their position in this way. We have banned over 50 brokers in the last three years, and 2009 will see more prohibitions for those involved in mortgage fraud."
Karim applied for a mortgage of GBP480,000 telling the lender that his annual income was more than GBP100,000 - while at the same time declaring an annual income to HM Revenue and Customs of GBP30,000. As the GBP480,000 loan applied for was 16 times his declared income the FSA found he must have known that the application would not meet any lending criteria. It therefore seemed highly likely that he knowingly declared a false income of more than GBP100,000 as the only way to obtain a loan of that scale.
The FSA has also cancelled the permission of Karim's firm Monopoly@States Limited.
