Financial Conduct Authority
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FSA bans and fines mortgage broker £70,000 for mortgage fraud
The Financial Services Authority (FSA) has banned a London mortgage broker, Grace Nmadibechi Ada Ukala, and fined her £70,000 for knowingly submitting false and misleading mortgage applications.
Ukala was an FSA approved person and the director of Goldsparkle Consulting Services Limited (Goldsparkle), a small mortgage broker firm based in South East London. She submitted five mortgage applications for herself supported by false and misleading income and employment information. She also failed to disclose accurately her earnings from Goldsparkle to Her Majesty's Revenue and Customs (HMRC) and misused funds that belonged to Goldsparkle to meet her personal mortgage repayments.
Margaret Cole, FSA director of enforcement, said:
"This fine, which would have been £100,000 had Ukala not settled early, is aimed at deterring approved persons from getting involved in mortgage fraud. Her earnings, as stated in the mortgage applications, were considerably higher than the income she declared to HMRC. By knowingly submitting false and misleading mortgage applications, Ukala acted in a totally unacceptable fashion.
"Our work on mortgage fraud continues as a priority in our campaign against financial crime. We have banned more than 60 mortgage brokers over the last three years and we will continue to ban such people to reinforce the message that knowingly giving false and misleading information is dishonest and poses a serious risk to prospective lenders. We will continue to ban individuals who demonstrate a lack of integrity."
Notes for editors
- The Final Notice for Ukala, includes the background to the case.
- Goldsparkle's authorisation was cancelled on 6 February 2009.
- The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.
- The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness.
