Lie-to-Buy Mortgage Brokers & the FSA.

poppy10_2

Semi-related:

BBC: Apprentice contestant Christopher Farrell admits fraud

A former contestant on BBC's The Apprentice altered mortgage applications to boost his monthly earnings, a court has heard.

Mortgage broker Christopher Farrell, 29, inflated clients' incomes to help them secure home loans - and earn himself commission.

Farrell, who admitted four charges of fraud, would either alter P60 forms or payslips to show his clients in a more favourable light to a mortgage lender or create fake documents, magistrates were told. In one instance, he made an application for a client with a £40,000 salary which showed he earned £120,000 a year.

He pleaded guilty at Plymouth Magistrates' Court to fraud and will be sentenced on 28 January.

FraudBuster

http://www.bbc.co.uk/apprentice/series6/christopher-farrell.shtml

And one was selling properties in Cyprus and Bulgaria!

geoffky

keep up the good work m8...all the scum should be in jail...and anyone who has bought in the last few years has paid more for their house due to these scum causing prices to rise with inflated figures,,

dunstonh

geoffky wrote: »

keep up the good work m8...all the scum should be in jail...and anyone who has bought in the last few years has paid more for their house due to these scum causing prices to rise with inflated figures,,

Despite their wrong doing, it doesnt take away from the fact that they were only giving people what they wanted. So, in that respect, your comment applies equally to the buyers as well as the brokers.

poppy10_2

FSA bans five mortgage brokers

The Financial Services Authority has banned five mortgage intermediaries and fined one of them £104,000.

The FSA found that Mark Thorogood had knowingly submitted fraudulent mortgage applications for himself and his wife, inflating his income from £22,950 to £120,000 and her income from £8,832 to £95,000.

In addition, Thorogood submitted two mortgage applications containing fraudulent information on behalf of a family member. He stated the family member’s income was £130,000; the actual income was £17,610.


The FSA has also prohibited Darren Button, a former advisor at the firm, for deliberately entering false income and employment information in mortgage applications which he then submitted to lenders.


Button also attempted to conceal a customer’s true income on a payslip with correction fluid because he knew the lender would reject the application if they saw the genuine income.

Tippex fraud - very sophisticated.

brit1234

dunstonh wrote: »

Despite their wrong doing, it doesnt take away from the fact that they were only giving people what they wanted. So, in that respect, your comment applies equally to the buyers as well as the brokers.

You mean encouraging deperate people to commit fraud. No the buyers shouldn't do it but what is worse? The mortgage broker who commits fraud time and time again as part of his daily routine in a position of power or the young couple who inflate their income once ever.

These mortgage brokers are scum and making comision on getting people to lie.

FraudBuster

And another link:

http://www.fsa.gov.uk/pages/Library/Communication/PR/2011/012.shtml

poppy10_2

MBM wrote: »

Fraudbuster, you seem to have missed this one. Or is it only mortgage brokers you have a problem with?

"Six individuals have been charged with offences in connection with a series of high value commercial mortgage frauds.

The investigation was referred to the Serious Fraud Office in March 2006 by West Midlands Police following a complaint from the Cheshire Building Society.

Five individuals, Ian McGarry, Hardeep Sodhi, Fatema Patwa, Saghir Afzal and Laurence Ferrigan have been charged with offences of conspiracy to obtain a money transfer by deception and dishonestly obtaining a money transfer.

An update on this one. It's been a year, nice to see the wheels of justice turning quickly:

Ian McGarry, a senior chartered surveyor, and Birmingham property developer Saghir Afzal have pleaded guilty to their part in a £50m mortgage fraud.

The court heard it was likely “one of the largest mortgage frauds ever perpetrated in the UK”. McGarry and Afzal admitted charges of conspiracy to obtain a money transfer by deception and dishonestly obtaining a money transfer.

The court heard that two brothers, Saghir and Nisar Afzal, borrowed £49.3m against property that was worth less than £6m, in what was “most likely one of the largest mortgage frauds ever perpetrated in the UK”.

The prosecution told the court that Afzal and his brother Nisar had orchestrated a series of property transactions with the “sole aim of inflating the value of the properties and deceiving the banks as to the value”.

They had recruited a “dishonest valuer”, named in court as Ian McGarry, to provide “grossly inflated” valuation reports that included false leases.

Andrew Baillie, prosecuting, said the solicitors had sold the properties to each other, ramping up the prices before applying for the mortgages. Mr Baillie said: “This is not an 80% mortgage or a 90% mortgage but, taking all of these loans together, it was the equivalent of an 866% mortgage.”

MissMoneypenny

poppy10 wrote: »

Semi-related:

BBC: Apprentice contestant Christopher Farrell admits fraud

A former contestant on BBC's The Apprentice altered mortgage applications to boost his monthly earnings, a court has heard.

Mortgage broker Christopher Farrell, 29, inflated clients' incomes to help them secure home loans - and earn himself commission.

Farrell, who admitted four charges of fraud, would either alter P60 forms or payslips to show his clients in a more favourable light to a mortgage lender or create fake documents, magistrates were told. In one instance, he made an application for a client with a £40,000 salary which showed he earned £120,000 a year.

He pleaded guilty at Plymouth Magistrates' Court to fraud and will be sentenced on 28 January.

UPDATE

Farrell, of Upton, Wirral, was given a nine-month prison sentence, suspended for two years, at Plymouth Crown Court.

The former Royal Marine, who was fired in week eight of the last series of the BBC programme, was also sentenced to 200 hours of community service.

Farrell was arrested last August after a bank discovered the fraud.

He tried to blame his colleagues for forging documents, but quickly admitted his guilt before magistrates in Plymouth.


After his admission, magistrates decided their powers of sentencing were insufficient and committed Farrell to Crown Court to be sentenced.

http://www.bbc.co.uk/news/uk-england-devon-12305205

silvercar

Farrell, of Upton, Wirral, was given a nine-month prison sentence, suspended for two years, at Plymouth Crown Court.

The former Royal Marine, who was fired in week eight of the last series of the BBC programme, was also sentenced to 200 hours of community service.

So he gets to keep the money and doesn't go to prison. Hmm and crime doesn't pay???