Former mortgage broker Michael Lewis has been sentenced to two years in prison for two counts of mortgage fraud and 10 counts of continuing to give mortgage advice despite being banned by the FSA.
Lewis submitted false employment and income details on mortgage applications in a bid to trigger substantial arrangement fees. In one case Lewis sought fees of £12,000.
He was banned and fined £106,499 by the FSA in August 2011.
The Financial Conduct Authority found Lewis ignored the ban against him and had been providing mortgage advice to clients up until his arrest on 24 October 2012.
Lewis pleaded guilty to the counts against him at a hearing on 14 June.
During the sentencing at Maidstone Crown Court last week, judge Byers said Lewis had advised vulnerable clients and his actions may have left borrowers with mortgages they could not afford.
FCA director of enforcement and financial crime Tracey McDermott says: “Lewis thought he could ignore our prohibition order, but he thought wrong. This fully deserved two year jail sentence shows just how much his arrogance has cost him.”
Lewis was made bankrupt in April 2012 and as a result none of the £106,499 FSA fine has been paid.
Chartwell Funding managing director Robert Winfield says: “It is good to see jail time being used as a punishment for this kind of case.”