mortgage fraud / fraud by false representation

ROBBIN_HOOD

my sister has been charged with fraud by false representation because she inflated her income on her mortgage application (self cert). she has had the mortgage for over 3 years and hasn't missed a payment or secured any loans on the house.

i was wondering what the courts mite sentence her to?

thanks in advance

dimbo61

1st post and name Robbin Hood !!!
Why is your sister being charged with Mortgage fraud now ?
If she has paid the mortgage every month for the last 3 years whats the problem now ?

Littlebutterfly_2

Erm...fraud is fraud. It doesn't matter if she kept up payments or not.

I suspect that as she's self cert, she claimed one income with the taxman and another to the bs to get the mortgage...and maybe now she's being audited by tax? So the figures don't match...And she falsified accounts to shoe bs. Very nawty..

Her Sol will tell her an idea of any sentence or fine. She should ask him or her.

gizmo111

So how did the mortgage co find out about this?

ROBBIN_HOOD

hi,

thanks for the speedy reply!

she was investigated by police for an alleged money laundering offense which never went anywhere after a year of the police investigation. but they did come up with this charge, the solicitor thinks its stupid and may get thrown out at crown court.

I'm just worried what the out come may be for her.

thanks!

Littlebutterfly_2

It's not 'stupid' and I can't believe that a solicitor would say that. This kind of prosecution has happened before where a tax audit has been done and uncovered falsifying accounts...which is an offence. As is misrepresentation on a mortgage application.

Littlebutterfly_2

Suggest your sol look at website Cps.gov.uk mortgage fraud on their with sentences given. Eg
R v WEINBERG [1993] 14 Cr.App.R.(S.) 381
Pleaded guilty to procuring the execution of a valuable security by deception. The defendant, a financial services consultant, concealed his debts and applied for a mortgage advance of £292K to enable him to purchase a flat for resale. 12 months.

dunstonh

she was investigated by police for an alleged money laundering offense which never went anywhere after a year of the police investigation. but they did come up with this charge, the solicitor thinks its stupid and may get thrown out at crown court.

I'm just worried what the out come may be for her.

Depends on the level of wrongdoing and if there was an attempt to cover it up.

The most recent court cases in august gave a sentence of 5 years and 4 months for mortgage fraud. Another got 1 year and another was given a suspended sentence of 150 weeks and 200 hours of unpaid labour. They were given out for manipulation of the purchase price.

In this case it is manipulation of income.

For that, a recent court case gave a 36-year-old man from Sevenoaks an 18-month suspended sentence for mortgage fraud. Robert Fuller of Upper Spring Lane, Ightham, obtained a money transfer of £266,000 by deception and £80,000 by false representation. He was also given 250 hours community service and has been ordered to pay £700 court costs. That was for exaggerating income.

gizmo111

There must be 000's of self cert mortgages where the income was exaggerated, are the mortgage co's investigating them all? I have a freind who completely exagerrated income from about £32,000 to £65,000 but went IO and hasn't missed a payment, I think made some overpayments as well since the rate drop. Are the mortgage cos calling these mortgage in's and making people sell thier houses?

dunstonh

gizmo111 wrote: »

There must be 000's of self cert mortgages where the income was exaggerated, are the mortgage co's investigating them all? I have a freind who completely exagerrated income from about £32,000 to £65,000 but went IO and hasn't missed a payment, I think made some overpayments as well since the rate drop. Are the mortgage cos calling these mortgage in's and making people sell thier houses?

Typically, you only get found out if you fall into arrears/late payments or its a money laundering ID report (which doesnt have to mean money laundering but can be any suspicion of any crime or potential crime, including benefit fraud or tax evasion).

A lender isnt likely to look at it unless you give them reason to. Although some do have a random sample check. Also, if the person you bought the mortgage through (bank clerk or mortgage adviser) has had a case of inflated income and that has been found then they may also look into other cases put through that person to see if there was a trend.

gizmo111

Ok well fingers crossed he doesn't get investigated - dont think I could him, wife and all his children in the spare room!