FCA has started criminal proceedings against 2 individuals for unauthorised activities relating to mortgages.
Larry Bareto traded as an unauthorised firm and Tassib Hussain is an accountant. Over a 3 year period Mr Bareto would charge a fee to clients who he thought did not have sufficient income to justify their requested mortgage and then pay that fee in cash to Mr Hussain to create false employment and self-employment documentation that could support the mortgage applications. Mr Bareto was not only unauthorised but was also already a banned person.
FCA has brought prosecutions for both fraud (punishable with a maximum 10 years’ imprisonment) and breach of the regulated activities prohibition (punishable with up to 2 years’ imprisonment).