This is the first time the FSA has taken bankruptcy proceedings for an unpaid fine.
Former East London mortgage broker Sadia Nasir had a financial penalty of £129,000 levied on her by the FSA in July 2008 for mortgage fraud.
She made no serious attempt to pay the penalty before the FSA began bankruptcy proceedings.
FSA director of enforcement Margaret Cole says: “In the last three years we have banned 60 brokers and levied fines totalling more than £900,000 in relation to mortgage fraud.
“Nasir was the first mortgage broker to receive a six figure penalty for using her position in an authorised firm to commit mortgage fraud. This bankruptcy action shows our determination to achieve credible deterrence in this area. We are determined to pursue recovery of our penalties by all means available to us.”