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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