Mortgage Fraudster Loses Properties

In an attempt to widen the scope of items posted in this blog, I would like to draw your attention to the case of a mortgage broker operating in North London who was convicted of mortgage fraud. The reason for blogging this here is to offer a warning about introducers in particular but also to point out the kind of frauds that are taking place in the market.

This broker was accused and convicted of mortgage fraud. He helped several clients obtain mortgages  by providing false  employment details and the usual documents and he also created several different false identities  including bank accounts in order to acquire properties totalling about £4 million  in the North London area in his own right,

The article here provides the facts as published by the NCA, including the addresses of the properties seized by the authorities. There are a number of articles out there about it in the media.

What learning can we take from this?

There are two points really. Firstly, that there is fraud out there and it takes on many forms. If someone contacts your firm with a view to introduce business to you, you need to be  extra careful.  No longer is it just a case of getting an introducer agreement signed, you need to carry out significant due diligence on the individuals and firms involved. Obvious BUT NOT EXHAUSTIVE matters include whether they have ever  been FSA or FCA authorised and if so whether they have ever had any matters of disciplinary enforcement or have been struck off. Don't just take their word for it, check on the Financial Services Register. Are they really who they say they are? There is a focus on knowing your customer but it needs to be  translated to knowing where your business is coming from and who is involved in it along the way. Have they ever had or do they currently have any active any financial issues? Bankruptcy, IVA , Financial Servic es industry debts or  general credit issues tend to focus the mind and may give rise to opportunist views on business generation ( i.e. fraud). I have a standard form for due diligence on individuals  who want to be  introducers if you want to contact me.

The second point is to point out how committed fraudsters can be. This chap has a number of aliases including active bank accounts in the names of people who were not him. He must also have had fraudulent passports. There is big money in fraud and  this means that it is worth investing the time to make the fraud more plausible. Be vigilant!

Finally, if you suspect fraud, don't forget to SAR.