Four men have been arrested by the City of London Police over a £9m mortgage fraud against a major insurance company.
All four, aged 56, 46, 39 and 31, were arrested yesterday (Tues) morning on suspicion of conspiracy to defraud.
The operation covered North West London, Surrey, Hertfordshire, Milton Keynes and Northampton.
Steve Head, detective chief superintendent of the City of London Police, says there has been a sharp increase in reported cases of mortgage fraud in the past 18 months.
"Typically a criminal gang, often including surveyors and solicitors, use false valuations and tenancy agreements to persuade lenders to provide loans far exceeding the worth of their properties," he says.
Head anticipates more cases being referred to the police in the near future as lenders and borrowers scrutinise their finances.
"Individuals are losing millions and millions of pounds through a range of mortgage frauds, with much of this money being paid into the coffers of criminal networks," he adds. "We have a number of significant investigations ongoing."
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