The Financial Services Authority has today banned three mortgage brokers from working in the Financial Services Industry for fraud and fined two of the brokers £294,500 and £120,000.
After Investigating into each individual, the FSA revealed serious mortgage fraud and all three individuals failed to act with integrity and honesty.
These actions bring the total number of mortgage brokers banned to 91 and serve as a warning to individuals who are involved in mortgage fraud, try to mislead the FSA or who fail to comply with its rules.
John Charalambous, a director of The Financial Associates, an authorised mortgage and general insurance intermediary in Sidcup, Kent, has been fined £294,500, for taking part of a customer’s mortgage advance, and for attempting to defraud life insurance companies.
Richard Granville Greenland, of Beckenham in Kent, and an approved person of Guardian, a small mortgage broker, has been banned and fined £120,000 for knowing involvement in mortgage fraud and failing to ensure Guardian had appropriate systems and controls.
And Michael Adam Goldman, of Goldman Group, Manchester, acted as a mortgage and insurance intermediary and was an approved person and an authorised person. The FSA has banned Goldman for submitting a fraudulent application for himself in 2007, and for submitting fraudulent mortgages for three closely related clients, and concluded he is not a fit and proper person to continue trading.
Margaret Cole, the FSA’s director of enforcement and financial crime, says: “We take mortgage fraud very seriously, particularly when customers suffer or are financially at risk. All three individuals have demonstrated a serious lack of integrity and we regard it as even more serious when those in senior roles and who are trusted by the customers abuse their positions.
“The FSA continues to identify threats to consumers through intrusive supervision and removes these where possible by banning rogue individuals. We expect this tough action to deter others from conducting themselves in this way.”
