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Six found guilty of mortgage mis-selling

FSA continues crackdown on fraudulent mortgage applications

By Luke Whitmore, 6th July 2010

The Financial Services Authority has banned six mortgage brokers from the industry for mortage mis-selling.

The majority of them were found to have submitted mortgage applications containing misleading or incorrect information about potential borrowers, with three of the perpetrators working for the same firm.

The Financial Services Authority have banned a total of 91 mortgage brokers over the past three years for this kind of fraudulent activity, which often results in borrowers ending up with mis-sold mortgages which are not suited to their financial circumstances. This can lead to customers struggling with the burden of a mortgage that they have no hope of paying off, usually ending in bankruptcy and repossession.

The FSA's crackdown on mortgage mis-selling has so far resulted in over £1.7m in fines for those involved in this kind of illicit activity.

Neale Morton, Syed Meah and Jonathan Smith - all of Neal Morton IMS Ltd - were three of those who had action taken against them.

Neale Morton was fined £130,192 for allowing customers and employees to commit mortgage fraud through his business, submitting fraudulent mortgage claims for himself and failure to disclose information during the FSA investigation. His two advisers were also banned for providing falsified documents to the FSA.

The other brokers to be banned were Monika Tewari, found to have supplied falsified income information on two mortgage applications, Amanakwaa Adu, who lied about his income and nationality on mortgage applications, and Tony Oliver, who was charged with submitting forms which included false details.

Margaret Cole, the FSA's director of enforcement, commented "These individuals put lenders at risk of financial crime and threatened to undermine confidence in the mortgage market, so this action makes the market a safer place."

For more about mis-sold mortgages, read our free guide.

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