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Regulator bans broker and fines him £250,000

The Financial Services Authority imposed its second largest fine on a mortgage broker last week for misleading the regulator and submitting false mortgage applications.

It has banned Selvavinayakam Vigneswaran, the sole director of Futture Finance Limited, and fined him £250,000.

The largest fine was in June 2010 to John Charalambous, trading as TFA in Sidcup, Kent. He was fined £294,500 for mortgage and life insurance fraud.

In October 2007, the FSA received a tip-off from a lender that Vigneswaran had been removed from its panel of preferred intermediaries as it suspected him of submitting applications to another lender that contained erroneous information.

During its investigation the FSA uncovered a catalogue of misdemeanours. Vigneswaran had submitted three mortgage applications in his parents’ names containing false information about their income and employment.

He had also commissioned and submitted false payslips for his parents along with four applications in his own name with fake information about his earnings. He also regularly submitted falsified information to lenders on behalf of his clients.

After being struck off the lender’s panel, Vigneswaran fraudulently used his father’s identity to set up another firm, Cherry Finance Ltd.

In a separate case Stephen Selby, trading as Selby Associates in Ellesmere Port, had his permission cancelled for failing to supply copies of client files and other relevant information to the FSA that allowed it to review his mortgage business following a series of applications that lenders declined.

Tom Spender, head of retail enforcement at the FSA, says: “What unites both these cases is that neither met the high standards we expect of individuals working in the mortgage market and that means, inherently, they both posed a risk to consumers and lenders.

“Big or small, we will continue to take action against businesses that breach our rules to ensure the mortgage market is a safer place for anybody that engages with it.”

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