The CPS took civil recovery action against Parmjit Dhami of Hornchurch, who secured a mortgage in 2010 using false information about his business and income.
Dhami used fake payslips to purchase a property in Ilford, which he subsequently let out to tenants.
In 2014, he obtained another fraudulent mortgage to buy a family home in Hornchurch.
He used a broker based in the West Midlands and paid fees to a fake company, Delaware Securities Limited. The fees were returned to him, less the broker’s commission, while false payslips were used to make it appear that he was employed by the company.
The broker was later investigated by the West Midlands Regional Organised Crime Unit. The broker and four people who had used his services to obtain mortgages fraudulently were then prosecuted for conspiracy to commit fraud.
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Dhami pleaded guilty and received a suspended prison sentence.
Following his conviction, the CPS pursued separate civil proceedings relating to the Ilford property purchased with the earlier fraudulent mortgage.
The £265,000 recovered represented 85% of the property’s equity, with the remainder deemed to have come from legitimate deposit funds.
The claim was settled, resulting in Dhami and his wife, who claimed a stake in the property, paying £265,000 in full.
Tom Oates, from the CPS Proceeds of Crime Division, said: “This case demonstrates that a criminal conviction and confiscation order may not be the end of our efforts to recover the ill-gotten gains of convicted criminals.
“After securing payment of a £146,150 confiscation order relating to one fraudulent mortgage, our specialist prosecutors pursued separate civil recovery proceedings concerning the property bought with the earlier mortgage.
“As a result, a further £265,000 has now been recovered.
“We will continue to use the full range of powers available under the Proceeds of Crime Act to ensure that those who benefit from unlawful conduct do not retain those assets.”
