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FCA refuses to lift ban on fraudulent broker

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  • 12/01/2016
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FCA refuses to lift ban on fraudulent broker
The Financial Conduct Authority (FCA) has refused to lift a prohibition order imposed on a former mortgage broker in 2010.

Mark Thorogood, who was also fined £104,294, ran the small independent mortgage advisory firm Property Park between October 2004 and 2008.

Whilst acting as a sole trader, Thorogood knowingly submitted fraudulent mortgage applications in his own name and on behalf of another.

Self-employed Thorogood sent in applications stating he was employed and that he earned an income of £120,000, however, HMRC records showed he earned £29,000 through his company.

Thorogood also sent in an application with his wife, inflating his income from £22,092 to £120,000 and her income from £8,600 to £95,000 – as well as two fraudulent applications on behalf of a family member.

He also failed to ensure that Property Park kept adequate records to ensure recommendations given to customers were correct.

On 10 August 2014, he applied to revoke the prohibition order imposed by the FCA, then the Financial Services Authority, who refused due to the serious nature of Thorogood’s activities.

The authority said that he had “not accepted that his behaviour was wrong, nor provided any evidence which suggests that he has remedied the lack of fitness and propriety that led to the prohibition being imposed.”

The FCA also said Thorogood has not proven that he will not continue to be a risk to customers or their confidence in, or the integrity of, the financial system.

Thorogood argued that the prohibition order has ‘seriously affected’ his business and that he is struggling to find paid employment, and that his health had suffered from the media attention his case had received – especially as he had been the 101th adviser to be prohibited.

Thorogood stopped trading in 2008 after the FCA visited his offices, and he said sufficient time has passed since the notice was issued.

He also argued that the North Wales police had decided not to pursue a case alleging mortgage fraud against him, and that he believes all his personal mortgages were legitimate.

Thorogood said his only shortfall was the administration of the financial services part of his business, which he left to his staff, although he was responsible for his staff’s actions and had learned from his mistakes.

He added that the banks providing the products he sold as a mortgage adviser created a ‘toxic environment’ which facilitated the situation he found himself in.

Taking Thorogood’s arguments into account, the FCA said he has not accepted that he engaged in ‘dishonest behaviour’ which gives rise to continuing concerns about his integrity.

While he accepts responsibility for failing to supervise his staff and said he had learned from his mistakes, he has not taken any steps to fix his lack of competence and capability and has declined training, it said.

It added that any media attention that has come from the prohibition order is not relevant to whether he continues to lack fitness and appropriate behaviour.

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