FCA bans another two individuals over mortgage fraud

Robyn Hall

April 29, 2013

The directors of the Bearsden firm acted without due skill and care by failing to ensure that Which Mortgage had appropriate controls. Controls are needed in a firm to verify information submitted by clients to support mortgage applications. This led to the firm being used by its clients to facilitate financial crime through the submission of false payslips to high street lenders.

Derek Jones has been banned from performing any significant influence function (such as chief executive, director or partner of a firm). He would have received a financial penalty for his misconduct but for his accepted evidence of serious financial hardship.

Douglas Jones also acted dishonestly by altering certain historic client files after concerns had been raised by a high street lender. He did this in an attempt to mislead the FCA as to the controls within Which Mortgage when the applications were submitted. He has received a full ban and a financial penalty of £19,000 (reduced to £13,300 after a discount for early settlement discount).

Bill Sillett, acting head of department for retail enforcement, said:“This is another example of a case involving the submission of false and misleading information for mortgages to lenders to try and obtain mortgages fraudulently. Mortgage fraud poses a serious threat to the FCA’s integrity objective of protecting and enhancing the integrity of the financial system. This includes ensuring that that a firm is not being used for a purpose connected with financial crime.”

Which Mortgage is currently under the management of new directors, who were not involved in the misconduct.

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