FCA issues warning on back of charges
Larry Barreto and Tassib Hussain, convicted of fraudulent activities related to mortgage applications in November 2023, have both been given suspended prison sentences.
In the period of January 1, 2015 to March 2018, Barreto operated outside the bounds of legal authorization, providing mortgage advice for a fee without the required FCA endorsement, it was reported. According to an FCA Press release, Barreto’s actions included inflating applicants’ incomes in mortgage applications, which totalled around £3 million. According to FT Adviser, the aim was to secure mortgages for clients with insufficient income. Hussain collaborated with Barreto by fabricating false documentation, including counterfeit HMRC records and fictitious employment paperwork.
Barreto’s sentencing includes two years’ imprisonment, suspended for two years, as well as 120 hours of unpaid work, for his involvement in 11 counts of fraud by false representation and two counts of carrying out regulated activities without authorization. Meanwhile, Hussain received a 16-month prison term, suspended for two years, and 120 hours of unpaid work for one count of fraud by false representation in relation to 11 mortgage applications.
Therese Chambers, joint executive director of enforcement and market oversight at the FCA, expressed strong condemnation for Barreto and Hussain’s actions.
“Barreto and Hussain chose a selfish path in pursuit of their own greed. Their dishonesty had unnecessarily put people at risk of taking out unaffordable loans and losing their homes,” she said.
“Their offending also undermined the reputation of the industry, and the legitimate advisers that work in it.”
Chambers asserted that the FCA, alongside the legal system, will relentlessly pursue and prosecute dishonest actors to maintain the integrity of the financial sector. Additionally, the FCA has initiated confiscation proceedings to recoup the ill-gotten gains obtained by Barreto and Hussain through their fraudulent schemes.
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