FSA bans and fines broker GBP101,106 for mortgage fraud - also bans second broker
19th January 2009The Financial Services Authority (FSA) has banned a mortgage broker and fined him GBP101,106 for submitting false mortgage applications.
Richard Kennedy was an FSA approved person and a director of Dynamic Mortgage Brokers of East London. The six figure fine, made up of GBP100,000 financial penalty and giving up GBP1,106 illicit profit made on false applications, is aimed at deterring approved persons from becoming involved in mortgage fraud.
In a separate case the FSA has also banned North London broker Moses Luzinda trading as Remos and Co for submitting false mortgage applications.
FSA director of enforcement Margaret Cole said:
"The actions of Mr Kennedy and Mr Luzinda were serious and blatant and posed an immediate risk to lenders. As part of our crackdown on mortgage fraud we have banned a number of mortgage brokers and others in the last year and we will continue to make examples of people who commit mortgage fraud until behaviour changes.
"Perpetrators of fraud will increasingly find themselves facing bans, significant fines, and being required to disgorge illicit gains made through their fraudulent activities."
The FSA found that Mr Kennedy:
- obtained a mortgage for himself using false and misleading information about his earnings and employment;
- was knowingly involved in the submission of mortgage applications for at least four customers that were based on false and misleading information about them.
The FSA found that Mr Luzinda:
- was knowingly involved in the submission of mortgage applications to lenders for himself and customers of Remos and Co based on false and misleading information;
- gave contradictory excuses for failing to comply with FSA requests for mortgage client files - saying both that the files were stored at another location and also that they had been converted into electronic format and subsequently lost during a computer crash.
The FSA has also cancelled the permission of Dynamic Mortgages.
