FCA commences criminal proceedings for fraud and unauthorised business
What has happened?
In April 2021 the FCA commenced criminal proceedings against Larry Barreto and Tassib Hussain. The proceedings relate to an offence of conspiracy to commit fraud by false representation involving both defendants and to two further offences by Larry Barreto of carrying on regulated activities without authorisation.
What do you need to do?
Larry Barreto traded as Barreto and Partners, an unauthorised financial services firm based in Nottingham. Tassib Hussain is an accountant who ran Keystone Chartered Accountants also based in Nottingham.
The fraud charges relate to a series of mortgage applications made between January 2015 and March 2018. The alleged conspiracy involved mortgage clients of Mr Barreto. If Mr Barreto concluded that the clients had insufficient income to justify the mortgage they required, he charged the client a fee which he would then pay in cash to Mr Hussain in order to create false self-employment and employment documentation to support mortgage applications for clients with insufficient income. The total value of the mortgages applied for was circa £3.8 million.
The unauthorised business charges relate to advice provided and arrangements made regarding a series of regulated mortgage contracts between June 2014 and March 2018. Mr Barreto is an unauthorised and prohibited person and as such could not provide regulated financial services.
Fraud is punishable by a fine and/or up to ten years’ imprisonment while unauthorised business is punishable by a fine and/or up to two years’ imprisonment.
How can we help you?
If you’d like to know more about how we can help you with your anti-fraud or regulatory perimeter arrangements, or any other regulatory compliance issues, our expert team is here to help.
Contact us today on 0207 436 0630 or email info@thistleinitiatives.co.uk.