View more on these topics

FSA bans and fines mortgage broker over £1.3m fraud

The FSA has banned and fined a mortgage broker for failing to act with integrity.

Gareth Flanagan, of GMF Marketing Services, based in Londonderry, Northern Ireland has been fined £95,200 and banned from today.

He has received a 30 per cent reduction in his fine, which would havce been £136,000, for settling early.

The FSA concluded that Flanagan has failed to act with integrity in carrying out his controlled functions by knowingly submitting mortgage applications through GMF in his own name which contained false information.

The effect was to mislead lenders regarding his income, residence, employment status and proposed use of funds.

The FSA states Flanagan also failed to take reasonable steps to ensure the business of GMF for which he was responsible in his controlled functions complied with the relevant requirements and standards of the regulatory system.

Flanagan submitted nine mortgage applications to lenders in his own name for five properties between December 2005 and November 2007.

Five of the mortgage applications were completed and the mortgage funds obtained amounted to £1,325,722. The other four applications did not proceed to completion.

The FSA identified that eight of the applications submitted by Flanagan in his own name contained false information; eight applications contained false or misleading information regarding his income.

In particular, in five of the applications Flanagan declared a personal income which was substantially higher than the income he had declared to HMRC.

Three of Flanagan’s applications contained false information in respect of his place of residence; three of Flanagan’s applications contained false information regarding his employment status and one of Mr Flanagan’s applications contained false information about the purpose of the mortgage.

Recommended

£5M limit applies to all VCT fund-raising

Baker Tilly has warned that all funds raised by venture capital trusts will be subject to the new £5m annual investment limit, which caps the amount that VCTs can invest in qualifying companies. In last year’s Budget, Chancellor George Osborne announced the Government would raise the annual investment limit for VCTs in qualifying companies from […]

George
1

A tax on aspiration

Gregor Watt reports that Budget measures have brought dismay across the housing industry

1

Treasury on the defensive over “granny tax”

The Government has hit back in the row over the “granny tax” with a Treasury minister insisting the move is fair. In this week’s Budget, the tax-free allowance for pensioners will be frozen at £10,500 until the personal allowance for all other income tax payers reaches the same level. The normal personal allowance is set […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment