FSA bans six mortgage brokers in fraud crackdown

The Financial Services Authority (FSA) has banned six brokers, and fined one of them £130,000, as part of its mortgage fraud crackdown.  

The FSA banned Neale Morton, Syed Meah and Jonathan Smith of Gateshead-based Neale Morton IMS Limited for submitting false mortgage applications to lenders.  

Morton, the principal of the business, was also fined £130,000 for falsifying his income on a mortgage application and allowing his business to be used for fraud. Morton appealed to the Financial Services and Markets Tribunal but his case was struck out.  

Meah, one of Morton’s advisers, was banned for not informing the FSA that he had been arrested for money laundering while Smith submitted falsified mortgage applications on behalf of customers.  

A separate FSA investigation has resulted in mortgage broker Monika Tewari being banned for exaggerating her income when applying for a home loan. Another investigation found that Amanakwaa Abu of Leystone-based Distinct Financial Services had lied about his nationality and had applied for mortgages using fictitious names. 

A further investigation found that Tony Oliver of Barking-based Finesse Financial was involved in mortgage fraud and had provided false information to the FSA. 

Margaret Cole (pictured), director of enforcement and financial crime, said: ‘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.'

She added: ‘Our crackdown on mortgage fraud continues as a priority in our ongoing campaign against financial crime. We have banned more than 90 mortgage brokers over the last three years and the fine on Morton takes the total penalties levied for mortgage fraud to more than £1.7 million.'