FSA bans and fines mortgage broker £100,000 for mortgage fraud
Margaret Cole
...we will continue to make examples of people who commit mortgage fraud until behaviour changes.
FSA/PN/090/2008
11 August 2008
The Financial Services Authority (FSA) has banned a mortgage broker and fined him £100,000 for submitting false mortgage applications.
Omotayo Fawole was an FSA approved person and sole controller of Oasis Mortgage and Financial Services Limited (Oasis) based in Woolwich, south east London. The six figure fine is aimed at deterring approved persons from becoming involved in mortgage fraud.
FSA Director of Enforcement Margaret Cole said:
"Mr Fawole's actions were serious and blatant, and he poses an immediate risk to lenders. We have banned a number of mortgage brokers and others this year in connection with mortgage fraud and we will continue to make examples of people who commit mortgage fraud until behaviour changes.
"Perpetrators of fraud will increasingly find themselves facing bans and significant fines, as well as action by the police or other agencies aimed at confiscation of assets."
The FSA found that Mr Fawole:
- obtained a mortgage after submitting an application which significantly overstated the profits of Oasis and his own income; and
- submitted a mortgage application for an Oasis employee which significantly overstated their earnings.
The FSA has also cancelled the permission of Oasis.
Notes for editors
- The Final Notice for Mr Fawole and the Final Notice for Oasis give more information about the case and can be found on the FSA website.
- This year the FSA has banned 17 mortgage brokers and others involvement in submitting false mortgage applications. Details of the cases are attached:
Amjad Ali Malik
Tahir Mahmood
Isah Mohammed
Rafiu Akanbi
Erinma Didi Jordan
Byron Brown,
Muhammad Adnan Ashraf,
Muhammad Asim Iqbal
Mohammed Atif Mayo
Andrew Talai Kiplimo
Gerard McStravick
Jack Keay
Sadia Nasir plus £100,000 fine and disgorgement of £29,000 illicit profit
Derick Whewall
Alan Hewitt
Ian Sanderson
John Akinduro - The FSA operates a system with mortgage lenders under which they can confidentially pass to a Mortgage Intelligence helpline at the FSA details of loan applications from brokers which they suspect may be fraudulent - this is described in FSA Press Notice 39/2006. So far lenders have alerted the FSA to more than 300 cases of suspected or proven mortgage fraud.
- The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.
- The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness.