Mortgage fraud investigations

Financial Services Authority

06.04.2009

The City of London Police and FSA have stepped up their investigations into mortgage fraud. Shared intelligence between the FSA and City of London Police sends out a message that law enforcement agencies and financial regulators are working together to take action against cases of suspected mortgage fraud. There have been a number of arrests of individuals as a result of these investigations.

It is becoming apparent that in relation to allegations of mortgage fraud, lenders, professional advisors and borrowers may be the subject of or involved with regulatory, civil or at worst criminal investigation or prosecution. Mortgage fraud investigations are likely to continue for a number of years and can involve a myriad of complex court orders made against these professionals such as freezing orders, multiple site search orders and other sanctions.

Sarah Wallace, Financial Services Authority expert at Irwin Mitchell, commented:

"It is important that anyone who is at risk of allegations of regulatory failings seek careful advice and guidance. Firms need to ensure their systems and controls are robust to deter and withstand financial crime and individuals in senior management positions will have ultimate responsibility for implementation and oversight."