The Financial Conduct Authority has banned two former directors of a Glasgow-based mortgage brokerage for submitting fraudulent mortgage applications.
Douglas Jones and his son Derek Jones, of Which Mortgage, have been banned after the regulator found they failed to ensure the firm had appropriate controls when submitting mortgage applications.
Douglas Jones has also been fined £13,300 after the FCA found he acted dishonestly by altering client files after a lender raised concerns.
Douglas Jones has received a full ban while Derek Jones has been banned from performing any senior role in regulated financial services. Derek Jones would have been fined but provided evidence of serious financial hardship.
The FCA says the lack of controls meant the brokerage was used by clients to facilitate financial crime by submitting fake payslips to high street lenders.
FCA acting head of retail enforcement Bill Sillett says: “Mortgage fraud poses a serious threat to the FCA’s integrity objective of protecting and enhancing the integrity of the financial system.
“This includes ensuring a firm is not being used for a purpose connected with financial crime.”
Chartwell Funding managing director Robert Winfield says: “Covering up your tracks is almost twice as bad doing the crime in the first place. Mortgage brokers do not want people like this in our industry, so it is good to see they are being caught and being thrown out by the FCA.”