Amir Khan, director of Sovereign Worldwide, was hit with the penalty for dishonestly submitting false income details to a mortgage lender in a personal mortgage application.
The judgement was issued by the Tribunal on 8 April 2014 following a two-day hearing in January 2014. It found Khan had submitted inflated income figures to a lender in a personal mortgage application in 2009 and provided false payslips to the lender in support of this.
Khan had also submitted false income details in an application for a mortgage in 2007.
The Tribunal said: “In our view the evidence that the behaviour concerned demonstrates dishonesty on Mr Khan’s part is cogent and compelling.”
“We accept that a substantial financial penalty is required in this case in order to achieve the necessary deterrent effect, bearing in mind the overall prevalence of mortgage fraud, its potential effect on the stability of the financial system, and the position of trust that a mortgage intermediary finds himself in.”
Khan did not contest the FCA’s finding that he had failed to take reasonable steps to protect his firm, Sovereign, from mortgage fraud risk or the decision to prohibit him from performing any regulated activities.
The FCA plans to impose this prohibition on Khan using a Final Notice. Sovereign had its permissions cancelled on 4 July 2013.
Khan is able to appeal this judgement.
