FSA bans five mortgage intermediaries

27 January 2011

The Financial Services Authority has banned five mortgage intermediaries and fined one for a range of fraudulent activities.

The Financial Services Authority (FSA) has banned five mortgage intermediaries and fined one of them £104,000.

This brings the total number of mortgage intermediaries banned since December 2006 to 101 since the sector came under FSA regulation in 2005.

Most of the individuals have been banned because they are not fit and proper to work in regulated financial services through failings that led to mortgage fraud.

Mark Thorogood, trading as Property Park Mortgages, Colwyn Bay, North Wales, has been fined £104,294 and banned from working in regulated financial services.

The FSA found that Thorogood had knowingly submitted fraudulent mortgage applications for himself and his wife, inflating his income from £22,950 to £120,000 and her income from £8,832 to £95,000.

He also submitted two mortgage applications containing fraudulent information on behalf of a family member. Documentation and supervision of other advisers was also inadequate.

The FSA has also prohibited Darren Button, a former advisor at the same firm, for deliberately entering false income and employment information in mortgage applications which he then submitted to lenders. Button also attempted to conceal a customer's true income on a payslip with correction fluid because he knew the lender would reject the application if they saw the genuine income.

Button was also aware of other fraudulent applications but took no action to prevent this as he thought "it didn't seem to be a huge problem".

Daniel Djaba, trading as DPD Consultancy Services, London has been banned from performing a significant influence function in regulated financial services. He failed to have appropriate systems and controls in place and therefore failed to prevent the firm being used to commit mortgage fraud.

The FSA has also prohibited Adeolu Adeosun, a former advisor at DPD, for knowingly submitting fraudulent mortgage applications for himself and intentionally misleading the FSA during an interview. Adeosun was a self-employed advisor who provided mortgage advice to DPD's customers. However, he was not qualified to give advice, nor had he been assessed to be a competent advisor by DPD.

Waheed Hanif, a sole trader at The Broker Group, Burton upon Trent, has been banned for acting dishonestly and lacking integrity.

In November 2009, Hanif was convicted by Stafford Crown Court of one count of obtaining a pecuniary advantage for another by deception and one count of obtaining a money transfer by deception. Hanif had submitted false information in his application for FSA authorisation and a false mortgage application to a lender in his own name.

Margaret Cole, the FSA's managing director of enforcement and financial crime, said: "For those that don't follow the rules the consequences are very serious. Not only might they receive a fine and a ban, but - by no longer being able to work in regulated services - they also face losing their livelihood."

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