Probe identifies rogue solicitors
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The Solicitors Regulation Authority has stepped up its crackdown on rogue law firms in an attempt to curb spiralling levels of mortgage fraud.
Some 106 solicitor firms were investigated by the SRA last year following reports of suspected misconduct in relation to mortgages or property.
Of these, 22 law firms have been closed by the SRA and 24 cases have been referred to the police for further investigation.
Another 30 cases have been referred to the Solicitors Disciplinary Tribunal, which has the power to strike off solicitors, while several other investigations are underway.
The SRA estimates that these emergency inspections have saved lenders between £15m and £20m in the past nine months alone.
The regulator handled more than 400 cases of suspected mortgage and property fraud last year - up from 356 in 2008 and just 85 in 2005.
The SRA has issued advice to all solicitor firms outlining warning signs to look out for.
Steve Wilmott, head of the fraud and confidential intelligence bureau at the SRA, says: “Last year the SRA stepped up its work to prevent, deter and tackle mortgage fraud. We are working closely with lenders and the police to share intelligence and take prompt action.”
Robert Wishart, detective superintendent of the City of London Police, the national lead force for fraud investigation, says: “We are committed to working with the SRA during 2010 and beyond to target the corrupt solicitors who we believe are significant enablers of property fraud.”
Revelation of the extent of rogue solicitors’ involvement in mortgage fraud comes as the latest figures show that mortgage fraud levels doubled in 2009.
KPMG Forensic’s Fraud Barometer recorded 31 cases of mortgage fraud last year worth some £77m compared with 25 cases worth £36m in 2008.
The company predicts that an increasing amount of fraud will be detected as lenders review their mortgage books.
Hitesh Patel, partner at KPMG Forensic, says: “The credit crunch will make the situation worse and we are yet to see its full impact.”
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Readers' comments (1)
Anonymous | 1 Feb 2010 7:37 pm
Perhaps you should work closer the lenders as to they file the foreclosure proceedings properly but refuse to relaease documents when submitting a Quailified Written Request.
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