The FSA has banned a mortgage broker and his wife for submitting false income information on a personal loan application.
Ian James, approved person at Orchard House Mortgages Limited, made an application for a personal loan accompanied by a falsified payslip.
His wife, Nicola James, worked as company secretary and has also been banned for taking part in the joint loan application.
James had only been authorised for six month when he made the application in July 2007, and was able to obtain a loan of £9,000 including interest.
Jonathan Phelan, head of retail enforcement at the FSA, explains the reason for the strict action. “As the approved person at Orchard House Mortgages Limited (Orchard House), Mr James had overall responsibility for ensuring that Orchard House conducted its business with integrity.
“He showed a lack of honesty and integrity in relation to his own personal financial dealings. Given our concerns about brokers' use of false payslips on customers' mortgage applications, we applied the same standards to him and we concluded that he could not be trusted to occupy any position in relation to customers' mortgage applications.”
This latest move shows the regulator is operating a zero tolerance policy towards mortgage fraud, and is closely scrutinising the financial dealings of those suspected of involvement.
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