An FSA investigation into Merrell began in 2008, after was he convicted of four counts of obtaining a money transfer by deception, and two counts of attempting to obtain dishonestly a money transfer by deception.
Police notified the regulator and Merrell was sentenced to 14 months imprisonment for each offence, to run concurrently.
Following its own enquiry, the FSA found Merrell committed these financial crime offences whilst an approved person.
It found he had submitted false mortgage applications to lenders in order to launder money obtained by drug trafficking.
The crimes date back to May 2005, when Merrell took up employment as a mortgage adviser at an appointed representative of an unnamed FSA authorised firm. He left in November 2008.
This role followed Merrell’s exit in June 2001 as director and investment adviser at Salisbury House, an appointed representative of Zurich’s Advice Network, now Openwork.
According to the FSA register, Merrell ceased to be an adviser at the firm in October 2003. He remained a director until January 2005, at which point he was no longer an approved person.
In its Final Notice on the case, the FSA says of Merrell: “The convictions, and the conduct which gave rise to them, go directly to impugn your honesty, integrity and reputation and therefore demonstrate you are not a fit and proper person to perform any function in relation to any regulated activity carried on by any authorised person, exempt person or exempt professional firm.”
The regulator says the “indefinite” prohibition order is necessary because of “the severity of the risk” Merrell poses to consumers and to confidence in the market generally.
It adds Merrell presents “a risk to consumers, to the financial system, as well as to the FSA’s statutory objective of the reduction of financial crime”.
