FSA bans broker for mortgage fraud
FSA/PN/027/2009
16 February 2009
The Financial Services Authority (FSA) has today published a Final Notice banning mortgage broker Leo Kusi-Appiah, who was recently jailed after pleading guilty at St Albans Crown Court to obtaining property by deception in connection with mortgage fraud.
The FSA found that Mr Kusi-Appiah, who traded as Oxford House Financial Services in North London, submitted fraudulent mortgage applications in his own name, in his wife’s name, and in the name of a fictitious person called Kwadjo Amoteng, whose identity Mr Kusi-Appiah created.
Mr Kusi-Appiah also made false and misleading statements to the FSA about his business arrangements, and he failed to disclose in his application for authorisation that he had been the subject of two County Court Judgments.
The FSA banned Mr Kusi-Appiah nearly two years ago but publication of the Final Notice had, for legal reasons, to await the outcome of the court case.
Margaret Cole, FSA director of enforcement, said:
"This is one of the more serious mortgage fraud cases we have come across since mortgage regulation began four years ago. It was one of the first mortgage broker cases that we decided to investigate back in 2005. FSA staff worked closely with Hertfordshire Constabulary, to avoid tipping off Mr Kusi-Appiah, and the FSA and police investigations were conducted in parallel.
"We continue to work with police forces and other law enforcement agencies in the nationwide crackdown on mortgage fraud, and I expect to see more prosecutions of this kind and confiscation of assets in coming months and years.”
Notes for editors
- The Final Notices for Mr Kusi-Appiah and Oxford House Financial Services give more information about the case and can be found on the FSA website.
- A Press Notice issued by Hertfordshire Police gives more information about the conviction and sentencing of Mr Kusi-Appiah. He received two years for obtaining property by deception plus two years nine months for other offences to be served consecutively, making a total of four years and nine months.
- Over the past year the FSA has banned more than 20 mortgage brokers and others involved in submitting false mortgage applications.
- 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.