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FSA bans second mortgage broker in one week for fraud

The FSA has banned a second mortgage broker this week for mortgage fraud.

Sofique Ullah, who traded as M A Financial Services and M A Mortgages in Bradford, has been banned for knowingly submitting mortgage applications supported by inaccurate and misleading employment details for himself and on behalf of his customers.

On Monday, the FSA also banned 1st Point director Gabriel Aramide and fined him £101,279 for submitting a fraudulent mortgage application.

The watchdog says Ullah, while acting in his capacity as principal, also did not put in place adequate arrangements to control M A Financial Services and to counter the risk that it might be used to further financial crime.

It also found that Ullah did not take reasonable steps to verify client information. He also did not implement adequate record keeping systems; and did not monitor mortgage business transacted. The FSA says he also did not understand the regulatory requirements associated with regulated mortgage business.

FSA head of retail enforcement Jonathan Phelan says: “Ullah lacks integrity and competence and his actions posed a serious risk to mortgage lenders.

“Our crackdown on mortgage fraud is gathering pace – we have banned more than 40 mortgage brokers for mortgage fraud over the last two years, and we will continue to ban people who become involved in mortgage fraud, in order to stamp out this behaviour.”

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  1. I have noticed the FSA since the start of the “credit crunch” has started to show some presence and are out showing who’s the boss. Where was the so called boss when the world economy was going in to the black hole?…I beleive everybody has asked that question and got no reply so, our boss “FSA” has now decided to counter balance the ear ache with a simple solution…go out and close small mortgage brokers (the ones with no voice). Lets face it, the only thing FSA is regulating these days is its own FAT pocket!

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