Watchdog cracks down on brokers

The Financial Services Authority has been cracking down on mortgage fraud

Three brokers have been banned in a week by the Financial Services Authority as it continues a crackdown.

Sadia Nasir, a director at London Mortgage and Financial Services, was the first broker to be banned and fined for submitting fraudulent applications.

Robin Knox, director at Darlington firm Mortgage and Property Services Limited, was banned and fined over the way the company recommended sub-prime loans.

A former shares broker has also banned in the past week.

Thirteen mortgage brokers have now been banned by the FSA this year which is conducting a high-profile clampdown.

'Serious and blatant'

Ms Nasir's firm traded as House of Finance.

Perpetrators will increasingly find themselves facing bans, heavier fines and having to disgorge illicit fines Margaret Cole, FSA

The FSA said that she submitted seven mortgage applications containing false information about her employment and earnings which were supported by falsified documents.

In four cases she entered her own bank account details on clients' mortgage applications and the FSA said she withheld information from its investigators.

"Ms Nasir's actions were particularly serious and blatant, and she poses an immediate risk to lenders," said Margaret Cole, director of enforcement at the FSA.

As well as banning Ms Nasir, the watchdog fined her �129,000 - which it hoped would act as a deterrent and claw back any illicit profits.

Ms Cole said the case was an example of how the FSA would "intensify" its crackdown on mortgage fraud.

"Perpetrators will increasingly find themselves facing bans, heavier fines and having to disgorge illicit fines," she said.

'Unsuitable advice'

In an unrelated case, mortgage broker Robin Knox, who is based in the North East of England, was banned after the FSA found he had exposed 500 customers to the risk of receiving unsuitable advice.

Mr Knox, managing director of Mortgage and Property Services Limited, was also fined �17,500.

The FSA said the firm's advisers recommended unsuitable mortgage contracts to customers, such as sub-prime deals when mainstream mortgages were available.

Mr Knox also failed to ensure that the levels of fees were made clear to customers.

"We are continuing to find instances where mortgage brokers are unwilling or unable to maintain the standards we require," said Jonathan Phelan, of the FSA.

The watchdog has also taken action against a former shares broker for selling high-risk shares to customers without their consent and using "unacceptable" sales tactics.

Baljit Somal, who was employed by Square Mile Securities Limited from October 2002 to September 2007, was banned and fined �16,000.

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