Mortgage broker banned over false applicationsFSA says applicants hadn't given consent

18 July 2008

A mortgage file holder

Fees to exit your mortgage should be proportionate to the real admin costs.

A mortgage broker has been banned for submitting false mortgage applications without the knowledge of the individuals involved, the City watchdog has announced.

The Financial Services Authority said John Akinduro, of Highflyer Business Services, submitted applications in the names of two people without their knowledge or consent, and used false documents to support the applications.

When contacted by the FSA, the people involved said they had never heard of or met Mr Akinduro, although they did know someone who had worked for him on a casual basis.

Bankruptcy

Mr Akinduro also failed to tell the FSA that he had been the subject of bankruptcy proceedings before he was authorised by them, and had subsequently been the subject of two bankruptcy orders in July 2006 and May 2007.

He also failed to disclose to the regulator that he had five unsatisfied County Court judgments registered against him.

Jonathan Phelan, head of retail enforcement at the FSA, said: 'Mr Akinduro's business was used to commit mortgage fraud and his actions posed a risk to lenders.

'We have banned a number of mortgage brokers this year as part of our intensified crack down on mortgage fraud which involves us working alongside other authorities such as the police, and acting on information received from lenders and whistleblowers.'

Mr Akinduro, who could not be contacted to comment, is the 14th mortgage broker to be banned so far this year.

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