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Lender tip-off led to £250k fine for broker

The FSA has banned a London mortgage broker and fined him £250,000 for repeated mortgage fraud and deliberately misleading the regulator.

The penalty is the second-biggest fine imposed on a mortgage intermediary.

Selvavinayakam Vigneswaran was the sole director of Futture Finance Limited, a mortgage brokerage based in Kingsbury, North-west London.
Authorised in October 2004, Vigneswaran was the only approved person at the firm and was responsible for the day-to-day running of the business and ensuring it complied with FSA standards.

In October 2007, the FSA received a tip-off from a lender that Vigneswaran had been removed from its panel of preferred intermediaries as it strongly suspected him of submitting applications to another lender that contained erroneous information.

During its investigation, the FSA uncovered a catalogue of misdemeanours. These showed Vigneswaran had submitted three mortgage applications in his parents’ names containing false information about their income and employment.

He had also commissioned the creation of and then submitted, false pay slips for his parents, submitted four applications in his own name that contained false information about his own earnings and regularly submitted falsified information to lenders on behalf of his clients.

Having been struck off the lender’s panel, Vigneswaran fraudulently used his father’s identity to set up a new firm, Cherry Finance Ltd.
The FSA spoke to Vigneswaran’s father, who is retired, does not speak English and whose experience of financial services extended to occasional administrative support at Futture. He was not aware that a company had been set up in his name.

Of the £250,000 fine, £100,000 specifically relates to Vigneswaran misleading the FSA.

FSA head of retail enforcement Tom Spender says: “Big or small, we will continue to take action against businesses that breach our rules to ensure the mortgage market is a safer place for anybody that engages with it.”

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. How, like so many other crooked mortgage brokers, did he ever get authorised by the FSA in the first place?

  2. Innocent till proven guilty Julian – if he had not been found to have done anything wrong prior to 2004, and he satisfied all the threshold conditions,why wouldn’t he have been authorised?

    This is one of the reasons why the mortgage arena became regulated – so dishonest brokers would get caught.

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