FSA bans broker for aiding money laundering

15 July 2010 | By Natalie Thomas

In May 2005 Merrell commenced employment as an appointed representative of an FSA authorised firm. His employment at this firm however terminated on November 12 2008. He has not been an approved person since 25 January 2005.

On June 27 2008, he was convicted at Nottingham Crown Court of four counts of obtaining a money transfer by deception, and two counts of attempting to obtain dishonestly a money transfer by deception.

He committed these financial crime offences whilst he was an approved person.

On November 14 2008, he was sentenced to 14 months imprisonment for each offence, to run concurrently.

The FSA says he has acted dishonestly and without integrity whilst being an approved person and allegedly, whilst being a mortgage advisor, by submitting false mortgage applications to lenders, in order to facilitate the laundering of money through drug trafficking.

In its final notice to Merrell, the FSA says: “You present a risk to consumers, to the financial system, as well as to the FSA’s statutory objective of the reduction of financial crime, as you have failed to demonstrate that you conducted your business in compliance with proper standards; and  the severity of the risk that you pose to consumers and to confidence in the market generally is such that it is necessary in order to achieve its regulatory objectives for the FSA to make a prohibition order against you in the terms proposed.”