ao link
0 £0.00
This item was added to your basket
Credit Strategy homepage
LinkedIn
Twitter
Intelligence, Insight and community for responsible professionals in credit

FCA starts criminal action on mortgage fraud case

Following an investigation, the Financial Conduct Authority (FCA) has started criminal proceedings against two individuals over an alleged conspiracy around mortgage fraud.

The regulator explained that the proceedings relate to allegations of conspiracy to commit fraud by false representation involving both Larry Barreto and Tassib Hussain, plus a further two alleged offences by Barreto of carrying on regulated activities without authorisation.

 

Barreto traded as Barreto and Partners, an unauthorised financial services firm based in Nottingham. Tassib Hussain is an accountant who ran Keystone Chartered Accountants also based in Nottingham.

 

According to the FCA, the fraud charges relate to a series of mortgage applications made between January 2015 and March 2018. The alleged conspiracy involved mortgage clients of Barreto.

 

The FCA alleged that if Barreto concluded that the clients had insufficient income to justify the mortgage they required, he would charge the client a fee which he would then pay in cash to Hussain, to create the false self-employment and employment documentation to support mortgage applications for clients with insufficient income.

 

The total value of the mortgages applied for was about £3.8m.

 

The unauthorised business charges relate to advice provided and arrangements made regarding a series of regulated mortgage contracts between June 2014 and March 2018. The FCA said Barreto is an unauthorised and prohibited person and as such could not provide regulated financial services.

 

Fraud is punishable by a fine and/or up to 10 years’ imprisonment. Unauthorised business is punishable by a fine and/or up to two years’ imprisonment.

 

Please login to continue reading this article.

Not a member?

Become a member

FREE registration. No credit card required

Register now
  • Stay up-to-date with industry news and appointments
  • Hear about events first
  • Read 1 free Premium article per month

Become a premium member

From as little as £3.48 per week

Become Premium
  • All the perks of a standard member plus:
  • Access to the entire Credit Strategy website
  • 12 months subscription to Credit Strategy Magazine
  • 25% discount to all conferences
  • Exclusive access to Premium Member only roundtables
  • 50% off award entry fees

GET THE LATEST INDUSTRY NEWS STRAIGHT TO YOUR INBOX

READ NEXT

FCA to streamline its decision-making processes

FCA to streamline its decision-making processes

Language changes needed to support diversity, report finds

Language changes needed to support diversity, report finds

Tesco Bank to close all personal current accounts

Tesco Bank to close all personal current accounts

Upcoming events

Credit Strategy
LinkedIn page

Member of

Did you find our website useful?

Thank you for your input

Thank you for your feedback

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace. @ Copyright Shard Media Group