FSA fines and bans south London broker

The Financial Services Authority Last week banned a south London broker and fined him 100,000 for his involvement in the submission of false mortgage applications.

Abiola Agbalaya was an FSA-approved person and sole controller of Herald Finance that operated in south London.

The FSA says the six-figure fine is aimed at deterring approved persons from becoming involved in mortgage fraud.

The fine was meted out as a direct result of Agbalaya’s supervision of, and knowing involvement in, the submission of falsified mortgage applications.

Grace Olatunji, who worked as a mortgage consultant at Herald, has also been banned by the FSA for submitting mortgage applications based on false income information.

The regulator found that Agbalaya obtained several mortgages after submitting mortgage applications, which significantly overstated the profits of Herald and his own income.

He also supervised the submission of two mortgage appli-cations for Olatunji that signifiantly overstated her income.