"Their offending also undermined the reputation of the industry, and the legitimate advisers that work in it."
- Therese Chambers, FCA
Two individuals have been sentenced for fraud offences following a prosecution brought by the FCA, which saw the pair convicted in November 2023.
Yesterday, Larry Barreto was sentenced to a total of two years’ imprisonment, suspended for two years, with 120 hours of unpaid work, for 11 counts of fraud by false representation and two counts of carrying on regulated activities without authorisation.
Tassib Hussain was sentenced to 16 months’ imprisonment, suspended for two years, with 120 hours of unpaid work, for one count of fraud by false representation relating to 11 mortgage applications.
The investigation found that between January 2015 and March 2018, Barreto gave advice in return for a fee, without the necessary FCA authorisation, to people looking to take out residential mortgages.
In 11 cases, he dishonestly inflated the applicant’s income in their application to the lender. Barreto would then pay Hussain, who created false self-employment and employment documentation to support the inflated mortgage applications for clients with insufficient income.
Hussain produced multiple fake HMRC documents that contained false income figures, which in each case were sent on to the lender by Barreto. With Barreto’s knowledge, Hussain also claimed to employ two of the applicants and produced false contracts of employment and payslips, which Barreto also forwarded to lenders.
As a result of the fraud, lenders granted mortgages to several applicants on a false basis, placing them and their customers at greater risk beyond financial loss. The total value of the mortgages applied for was around £3 million.
The FCA has begun confiscation proceedings to recover the financial benefit obtained by the defendants.
In passing sentence HHJ Cole, sitting at Southwark Crown Court, said: "You are guilty of systematic mortgage fraud’ and have ‘abused your position... it ruins the integrity of the system to have dishonest players in it."
Therese Chambers, executive director of enforcement and market oversight at the FCA, said: "Larry Barreto and Tassib Hussain chose a selfish path in pursuit of their own greed. Their dishonesty unnecessarily put people at risk of taking out unaffordable loans and losing their homes.
"Their offending also undermined the reputation of the industry, and the legitimate advisers that work in it.
"These sentences should send a clear signal of the lengths we and the courts will go to catch and prosecute those who commit such acts of dishonesty. And for Mr Barreto and Mr Hussain the consequences of their offending will have far-reaching impacts for them beyond their sentences."
