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FSA bans mortgage broker who committed £3m mortgage fraud

The FSA has banned a mortgage broker after she was found guilty of 13 counts of financial crime, including fraud and obtaining money by deception.

In February 2010, Yasmin Choudhary, trading as Adams Financial Services, was found guilty of nine counts of obtaining a money transfer by deception, one count of attempting to dishonestly obtain money by deception and three counts of fraud.

In June 2010, she was sentenced to three years imprisonment.

In March, the FSA issued a warning notice to Choudhary which set out its intended prohibition order. In April, Choudhary wrote to the FSA disputing the total size of the fraud. She argued that she was only involved in fraud worth £1.8m, as opposed to the £3.1m stated in the FSA’s notice.

In May, the FSA issued a decision notice banning Choudhary from performing any function in relation to any regulated activity.

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Comments

There are 11 comments at the moment, we would love to hear your opinion too.

  1. She wants to quibble about £1.3m of criminality.Bye Bye….

  2. Got to love the repost to FSA: it was only £1.8 million of fraud! Another bad apple gone, but I guess there are always more. The issue here is that these fraudsters are getting thr the F&P tests…..

  3. So this person thought it was okay to commit fraud of £1.8 million, God help us, she deserves what she got.

    The only thing I want to know is why is it, that it is always a small mortgage broker or IFA practice that gets banned for life and a prison sentence, where are the Bank Directors, who have been caught managing firms that have been giving wrong advice and in some cases arguably fraud on a mass scale. PPI insurance mis-selling is going to cost the financial services industry an estimated 3 billion and that’s the people that actually claim.

    Isn’t it about time that the FSA starts to regulate financial services properly and treat all financial services firms in the same way and that includes prosecuting Bank Directors when their firms are found to be breaking rules or clearly found doing things wrong.

    At present all Bank Directors seem to have immunity from prosecution, as they always have the defence that they are too far away from the individual responsibility. If a firm is so big that those Senior Directors and Executives cannot take responsibility for what happens under their watch then surely that firm is too big and should be broken up.

    Massive bonuses comes with massive responsibility and if you can’t take responsibility for your organisation’s mistakes then you should not be in the job.

  4. So it’s only taken a year and 2 months to ban her…

    Good to see they are on the ball as usual

  5. What happened to the ‘ethics’ part of her training ? This industry does attract some characters.

  6. “FSA bans mortgage broker who committed £3m mortgage fraud”

    I should flaming well hope so!

  7. Peter,

    I suspect it is down to what constitutes “mis-selling” and what is deemed to be criminal fraud.

    I agree that it is difficult see much difference sometimes!

  8. John, I agree with Peter. There is a view that PPI was designed to be a product which a large percentage of policyholders could never claim on. Now, is that mis-selling, or is it fraud?

    If it was sold by intermediaries, then maybe ‘just’ mis-selling. However, these products were sold (using the hard sell) by tied agents who would be bullied and ultimately sacked if they did not hit targets.

    So, a product designed to mislead, sold by clueless salemen employed by the banks. If this is not institutionalised fraud then I don’t know what is?

    Shame FSA are so in awe of the big banks. Let’s hope the FCA will grow a set of balls and actually regulate?

  9. Well it gave the prisoner something new to read while serving at Her Majesty’s pleasure.
    Crackers!

  10. different name, same story!

  11. Rob Derry (Brunel Mortgages & Loans Ltd)) 5th September 2011 at 11:34 am

    To Peter Herd,

    I have taken this matter up with my MP in the past and the FSA take the approach that someone running a bank can’t be held personally responsible simply for something that went on “on their watch” (the FSA’s words). They would need to “prove a degree of involvement or some failure to carry out their responsibilities properly” (again their words).

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