Kent based mortgage and general insurance intermediary director John Charalambous was fined £294,500 for taking part of a customer’s mortgage advance and for attempting to defraud life insurance companies.
He advised a customer to remortgage their property to raise additional money for a new property, increasing the amount of the loan on the mortgage application without the customer’s knowledge or approval, and arranging to receive the excess amount into his own bank account. He then wrote the customer cheques which he was fully aware would bounce and continues to owe the customer £44,500.
He also set up life insurance policies in the name of customers without their knowledge to obtain commission and applied for other false life insurance policies in an attempt to obtain commission payments.
In March 2009 the FSA released a statement warning consumers about Charalambous. It told anyone who had taken out a mortgage with him to check that the advance he had applied for was the same amount they had requested in their initial application.
Richard Granville Greenland of Kent mortgage broker Guardian was banned and fined £120,000 for knowing involvement in mortgage fraud and failing to ensure the firm had appropriate systems and controls.
The FSA also banned Michael Adam Goldman of Manchester based mortgage and insurance intermediary Goldman Group for submitting a fraudulent application for himself in 2007 and submitting fraudulent mortgages for three closely related clients.
Goldman substantially inflated both his own and his clients’ income in order to obtain fraudulent mortgages. He would have also been fined £102,158 had he not been declared bankrupt in November 2009.
The FSA’s latest actions bring the total number of mortgage brokers banned to 91.
FSA director of enforcement and financial crime Margaret Cole says: “We take mortgage fraud very seriously, particularly when customers suffer or are financially at risk. All three individuals have demonstrated a serious lack of integrity and we regard it as even more serious when those in senior roles and who are trusted by the customers abuse their positions.
“We expect this tough action to deter others from conducting themselves in this way.”