Bloomberg News

U.K. Regulator Fines Mortgage Broker $148,000, Bans Another

January 19, 2009

Britain’s financial regulator fined a London mortgage broker 101,106 pounds ($148,000) and banned another in two cases involving false mortgage applications.

The Financial Services Authority said today that it fined Richard Kennedy, 46, from London, for supplying home- loan applications with false information. His fine represents a 100,000-pound penalty, plus the profit of 1,106 pounds he made from the transactions. In a separate case, it also banned another London mortgage broker, Moses Luzinda, for similar offenses.

The actions of Luzinda and Kennedy “were serious and blatant and posed an immediate risk to lenders,” Margaret Cole, the FSA’s director of enforcement, said today in a statement.

The FSA has made mortgage fraud one of its priorities since the onset of the recession, which may be one of Britain’s worst since the end of World War II. The regulator says fraud increases during bad times and has banned 20 people in the last year for submitting false home-loan applications.

A call to Kennedy’s company, Dynamic Mortgage Brokers, wasn’t answered. Luzinda declined to comment, saying he hadn’t yet seen the FSA’s statement.

To contact the reporters on this story: Caroline Binham in London at cbinham@bloomberg.net

To contact the editor responsible for this story: Anthony Aarons at aaarons@bloomberg.net.


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