The regulator has banned North London broker Akin Johnson, of Lifestyle Mortgages Islington, for systems and controls failings which led to at least eight mortgage applications being submitted to lenders containing false and misleading information.
Johnson also failed to disclose to the FSA that he had been removed from the panels of two mortgage lenders, information of which the FSA would reasonably expect notice. When questioned, he told the FSA that he did not think it was necessary to inform them of past misdemeanours.
The FSA found that Johnson employed “casual labour” to assist him in operating his brokerage. Johnson could not recall to the FSA how many employees he had used, and could only name one of these employees.
The watchdog’s investigation into Johnson also found that in November 2007 a residential mortgage application for his home address was submitted in the name of Jospeh Akin Adewumi Dada, an alias he admitted to having used in the past. Also, in January and February 2008 a further seven mortgage applications were submitted in his name for his home address. These mortgage applications all contained different statements of income and employment.
The FSA says that Lifestyle Islington’s client files were of such a poor quality that in many cases it was not possible to determine which mortgage had been applied for, or if a mortgage had been applied for at all. Of the 16 client files reviewed by the FSA, eight of the files there were either no copies of the mortgage applications submitted, or only partial copies.
FSA head of retail enforcement Jonathan Phelan says: “Johnson’s failings posed a serious risk to lenders and consumers. As part of our crackdown on financial crime in the mortgage market we have banned more than 40 mortgage brokers and others in the last two years and we will continue to ban people who either commit mortgage fraud or fail to prevent their firm from being used to further financial crime.”