FSA bans Doncaster mortgage broker for involvement in fraud
FSA/PN/091/2008
12 August 2008
The Financial Services Authority (FSA) has banned Doncaster mortgage broker Ian James for applying for a personal loan supported by a falsified payslip and for making a false claim to the bank overstating his income. His wife, Nicola James, has also been banned.
Jonathan Phelan, Head of Retail Enforcement at the FSA, said:
"As the approved person at Orchard House Mortgages Limited (Orchard House), Mr James had overall responsibility for ensuring that Orchard House conducted its business with integrity. He showed a lack of honesty and integrity in relation to his own personal financial dealings. Given our concerns about brokers' use of false payslips on customers' mortgage applications, we applied the same standards to him and we concluded that he could not be trusted to occupy any position in relation to customers' mortgage applications.
"A prohibition order is therefore necessary in line with the FSA's tough stance against people lacking honesty and integrity who wish to work in authorised financial services firms."
Mr James was the sole Director and Approved Person of Orchard House. The FSA has also cancelled the permission of the firm. Nicola James, who acted as the company secretary was also banned for jointly submitting the application for a personal loan.
The FSA found that Mr and Mrs James obtained a bank loan of just over £9,000, including interest, by submitting two false payslips with fake salaries and employment histories.
- The Final Notices for Ian Stuart James, Nicola Jane James and the Final Notice cancelling the permission of Orchard House include the background to the case, the relevant statutory provisions and the regulatory requirements contravened.
- 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.