During a previous hearing, Mr. Barreto admitted guilt to two counts of arranging and advising on regulated mortgages without FCA authorization. At the trial’s outset, Mr. Barreto’s co-defendant, Tassib Hussain, a chartered accountant, pleaded guilty to fraud by false representation.
“The total value of the mortgages falsely applied for was around £3 million.”
Between January 1, 2015, and March 2018, Mr. Barreto provided advice to clients seeking residential mortgages without the necessary FCA authorization. In 11 instances, he also deceitfully inflated the mortgage applicant’s income in their application to the lender.
Mr. Barreto charged the client a fee which he then paid in cash to Mr. Hussain, who created false self-employment and employment documentation to support mortgage applications for clients with insufficient income.
“Mr. Hussain also produced multiple documents purporting to have been issued by HMRC and containing false income figures, which in each case were sent on to the lender by Mr. Barreto.”
With Mr. Barreto’s knowledge, Mr. Hussain also claimed to employ two of the applicants to create a false impression of their income, producing false contracts of employment and payslips in support, which Mr. Barreto also forwarded to lenders.
“The fraud resulted in lenders granting mortgages to several applicants on a false basis, placing lenders at greater risk of loss.”
In response to the case, Steve Smart, Joint Executive Director of Enforcement and Market Oversight, stated: “Mr. Barreto and Mr. Hussain knowingly lied and misled their clients and mortgage providers in order to benefit financially from mortgage applications. This put borrowers at risk of taking on unsustainable levels of debt, and left lenders open to losses.”
“Today’s verdict demonstrates our commitment to tackling fraud and sends a warning to anyone involved in similar criminal activities that we will pursue them, so they face the full force of the law.”
“Mr. Barreto had previously been struck off as a financial adviser by the Personal Investment Authority (in 1996) and prohibited from carrying on regulated activity by the Financial Services Authority (in 2004).”
Both individuals will receive their sentences on February 23, 2024.
During a previous hearing, Mr. Barreto admitted guilt to two counts of arranging and advising on regulated mortgages without FCA authorization. At the trial’s outset, Mr. Barreto’s co-defendant, Tassib Hussain, a chartered accountant, pleaded guilty to fraud by false representation.
“The total value of the mortgages falsely applied for was around £3 million.”
Between January 1, 2015, and March 2018, Mr. Barreto provided advice to clients seeking residential mortgages without the necessary FCA authorization. In 11 instances, he also deceitfully inflated the mortgage applicant’s income in their application to the lender.
Mr. Barreto charged the client a fee which he then paid in cash to Mr. Hussain, who created false self-employment and employment documentation to support mortgage applications for clients with insufficient income.
“Mr. Hussain also produced multiple documents purporting to have been issued by HMRC and containing false income figures, which in each case were sent on to the lender by Mr. Barreto.”
With Mr. Barreto’s knowledge, Mr. Hussain also claimed to employ two of the applicants to create a false impression of their income, producing false contracts of employment and payslips in support, which Mr. Barreto also forwarded to lenders.
“The fraud resulted in lenders granting mortgages to several applicants on a false basis, placing lenders at greater risk of loss.”
In response to the case, Steve Smart, Joint Executive Director of Enforcement and Market Oversight, stated: “Mr. Barreto and Mr. Hussain knowingly lied and misled their clients and mortgage providers in order to benefit financially from mortgage applications. This put borrowers at risk of taking on unsustainable levels of debt, and left lenders open to losses.”
“Today’s verdict demonstrates our commitment to tackling fraud and sends a warning to anyone involved in similar criminal activities that we will pursue them, so they face the full force of the law.”
“Mr. Barreto had previously been struck off as a financial adviser by the Personal Investment Authority (in 1996) and prohibited from carrying on regulated activity by the Financial Services Authority (in 2004).”
Both individuals will receive their sentences on February 23, 2024.