MacAulay, a sole trader at Dele MacAulay Financial Services in Orpington – which ceased trading in 2008 – was also fined £115,157 by the FSA and banned from ever working in regulated financial services.
He obtained three fraudulent residential mortgage applications for himself, two for his wife and two for his brother between 2005 and 2007 from various lenders including Birmingham Midshires, GMAC-RFC and The Mortgage Business. Most of the properties were bought as investments for the applicants to rent out.
All the fraudulent applications contained inflated income figures and false employment information. The income on the applications were very different from the amounts which MacAulay disclosed to the FSA and to Her Majesty’s Revenue and Customs.
The FSA’s inquiry into MacAulay was conducted alongside a criminal investigation by Hertfordshire Constabulary.
MacAulay pleaded guilty to fraud at a previous hearing at the court back in October 2009. He became the seventh person to receive a six-figure penalty for knowing involvement in mortgage fraud.
Margaret Cole, director of enforcement and financial crime at the FSA, said the case was a good example of the benefits of a collaborative approach with the police.
She added: “His fine and ban reflect the seriousness of his failings, as well as the FSA’s attitude to those who abuse their approved status. Between us, we have dealt with MacAulay decisively, and justice has been done.”
Katie Tucker, chief operating officer at Private Finance, said it was an excellent example of the FSA’s more intrusive approach to financial crime.
She added: “It has become quite clear that many brokers are not just guilty of shoddy record keeping but of genuine fraud. It is concerning that this level of business was submitted over as long as three years without this broker ever having his applications scrutinised.”
