The FSA says it expects to see "more prosecutions and confiscation of assets" as a result of mortgage fraud after it banned a North-London based broker.
Leo Kusi-Appiah - who traded as Oxford House Financial Services - was found by the FSA to have submitted fraudulent mortgage applications in his own name, in his wife's name, and in the name of a fictitious person called Kwadjo Amoteng.
Kusi-Appiah was jailed after pleading guilty at St Albans Crown Court for "obtaining property by deception" in connection with mortgage fraud.
The broker sent the FSA a handwritten letter from Ghana in which Kwadjo Amoteng confessed to committing mortgage fraud offences using Mr Kusi-Appiah's name. Handwriting analysis showed the letter was probably written by Mr Kusi-Appiah.
The regulator also revealed Kusi-Appiah made false and misleading statements about his business arrangements and failed to disclose in his application for authorisation he had been the subject of two County Court Judgments.
The FSA banned Kusi-Appiah nearly two years ago but publication of the Final Notice had, for legal reasons, to await the outcome of the court case. Margaret Cole, FSA director of enforcement, said this is one of the "more serious" mortgage fraud cases it had come across since mortgage regulation began four years ago.
"It was one of the first mortgage broker cases that we decided to investigate back in 2005," Cole says. "FSA staff worked closely with Hertfordshire Constabulary, to avoid tipping off Mr Kusi-Appiah, and the FSA and police investigations were conducted in parallel.
"We continue to work with police forces and other law enforcement agencies in the nationwide crackdown on mortgage fraud, and I expect to see more prosecutions of this kind and confiscation of assets in coming months and years."IFAonline
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