The regulator revealed it had also worked closely with the Solicitors Regulation Authority (SRA) in the investigation, which involved a “significant number of individuals” across a range of financial, property and legal businesses in the Newcastle area.
The ban of NHL was the final part of the FSA’s action in relation to NHL and connected individuals.
NHL was used by its principals and by the mortgage introducers knowingly to submit mortgage applications to a lender which contained false information. This resulted in the lender unsuspectingly advancing sums which, in some cases, were considerably higher than the purchase price of the property.
Margaret Cole, director of enforcement at the FSA, said the failures at NHL were serious, deliberate and occurred as a matter of routine.
She explained: “Its principals acted in a totally unacceptable fashion and their actions and the actions of those connected to the firm posed a serious risk to the lender and to market confidence generally.
Northumbria Police recently arrested the firm’s directors Grace Darling Purdie and Linda Patterson. David Purdie, the shadow chief executive officer, and mortgage introducer Michael Foster were also among those arrested. The investigation, along with that of the SRA, is ongoing.
