The FSA Fines 3 Mortgage Brokers
Found guilty of committing serious mortgage fraud by the Financial Services Authority (FSA), 3 mortgage brokers have now been permanently banned from working in the financial services industry as well as fined a substantial amount.
Continuing in their revelation, the FSA divulged the following:
John Charalambous, director of TFA – an approved mortgage and insurance intermediary, Charalambous was fined £294,500 after he was found to be stealing part of property owners mortgage advances as well as committing fraud against life insurance companies.
Advising homeowners to remortgage their properties to raise finance for further property investments, Charalambous secretly increased the size of their mortgage applications whilst transferring this extra finance into their own bank account. But this is not all. On top of this, he also:
- Wrote customer cheques that he knew would bounce
- Set up life insurance policies in the name of customers without their permission as well as false ones (in order to obtain commissions)
Richard Greenland, of Guardian – banned and fined £120,000 for his involvement in mortgage fraud as well as failing to meet the FSA’s appropriate controls and systems, Greenland was initially fined £100,000 after he submitted false information to lenders on the behalf of customers. The remaining £20,000 was issued to him after he was found to not be complying with FSA standards, such as maintaining customer records and recording client advice.
Michael A. Goldman, of Goldman Group – a mortgage and insurance intermediary, Goldman was banned for the financial services industry after he attempted to send in a fraudulent application for himself in 2007. Later found to have submitted a further 3 applications for closely related clients, Goldman got away with not having to pay a £102,158 fine after he was declared bankrupt in 2009.
Related posts:
Leave a Reply