WIREDGOV

The Financial Services Authority (FSA) has banned a mortgage broker and fined her £129,000 after finding she had been involved in numerous fraudulent mortgage applications. This is the first time the FSA has both banned and fined a mortgage broker for mortgage fraud.

Sadia Nasir was an FSA approved person and the director of a firm based in Ilford called London Mortgage and Financial Services Limited. The firm traded as House of Finance. This six figure fine is aimed at deterring approved persons from getting involved in mortgage fraud and also aimed at taking back illicit profits that she made.

Margaret Cole, Director of Enforcement FSA, said:

"Ms Nasir's actions were particularly serious and blatant, and she poses an immediate risk to lenders.

"We have banned a number of mortgage brokers and others this year in connection with mortgage fraud but the problem persists. We made a commitment last year to increase fines in the retail sector to act as a deterrent and this case marks a step change in the way we are dealing with mortgage fraud, in line with that commitment.

"We will continue with this new policy and intensify our crackdown on mortgage fraud. Perpetrators will increasingly find themselves facing bans, heavier fines and having to disgorge illicit gains."

The FSA found that Ms Nasir:

• submitted seven mortgage applications containing false information about her own employment and earnings supported by falsified documents, including payslips, financial statements and accountant�s certificates;
• in four instances entered her own bank details on mortgage applications for clients; and
• deliberately withheld sections of an application form from FSA investigators, failed to disclose to the FSA information relating to a County Court Judgment made against her in September 2005 and failed to disclose the true extent of her assets in an authorisation application to the FSA.

Notes for editors

1. The Final Notice for Ms Nadir gives more information about the case and can be found on the FSA website. The £129,000 fine is made up of £100,000 penalty and £29,000 disgorgement of illicit profits.
2. Ms Nasir is a director of Sucasa (London) Limited, formerly named London Mortgages and Financial Services Limited, trading as House of Finance ("HoF"), which was a mortgage broker in the Ilford area. HoF was authorised by the FSA between 31 October 2004 and 25 May 2007 and, during this time, Ms Nasir performed the controlled function of CF1 (Director) and was the only mortgage adviser at the firm.
3. This year the FSA has banned 11 other mortgage brokers and one mortgage introducer for involvement in submitting false mortgage applications. Details of the cases are attached:
   Amjad Ali Malik
   Tahir Mahmood
   Isah Mohammed
   Rafiu Akanbi
   Erinma Didi Jordan
   Byron Brown
   Muhammad Adnan Ashraf
   Muhammad Asim Iqbal
   Mohammed Atif Mayo
   Andrew Talai Kiplimo
   Mr Keay
   Gerard McStravick
4. The FSA operates a system with mortgage lenders under which they can confidentially pass to a Mortgage Intelligence helpline at the FSA details of loan applications from brokers which they suspect may be fraudulent - this is described in FSA Press Notice 39/2006. So far lenders have alerted the FSA to more than 200 cases of suspected or proven mortgage fraud.
5. 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.
6. The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness.