Banned broker's clients could get compensation
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The Financial Services Authority says customers of mortgage broker Ashok Sharma of Ash Commercials (UK) Limited may be able to claim compensation for being mis-sold mortgages.
Sharma was banned by the FSA in April after it found that he had submitted multiple mortgage applications for two of his customers but failed to notice obvious discrepancies in them.
It also found that he provided mortgage advice when not qualified to do so and failed to comply with a legal requirement to provide the regulator with a report from a third party on the quality of the advice he was giving to customers.
The FSA wants to contact former clients of Ash as it says there was a significant risk of customers being recommended mortgages which were not suitable for them and they may be able to claim under the Financial Services Compensation Scheme.
Last week the regulator banned John Charalambous, a director at The Financial Associates in Sidcup, Kent, for taking part of a customer’s mortgage advance and attempting to defraud life insurance companies.
Richard Granville Greenland of Beckenham in Kent, an approved person at mortgage broker Guardian, has also been banned and fined £120,000 for his involvement in mortgage fraud, and failing to ensure Guardian had appropriate systems and controls in place.
Meanwhile, Michael Adam Goldman, of Goldman Group, Manchester, a mortgage and insurance intermediary, has been banned for submitting a fraudulent mortgage application for himself in 2007 and for also submitting fraudulent applications on behalf of three of his customers.
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