LONDON - City of London Police arrested eight people in dawn raids on March 10 for a suspected £40 million mortgage fraud. The alleged fraud involves more than 500 properties in the south of England. Officers searched six homes and three offices linked to East Sussex mortgage broker Eastbourne Financial Services (EFS), which is currently in liquidation. Charges against the eight men and one woman included conspiracy to defraud and money laundering, and were under referral from the UK's Financial Services Authority which had been investigating the firm.
The number of mortgage frauds and regulatory enforcements in the UK is rising as the financial turmoil unfolds. According to audit, tax and advisory firm KPMG, 25 UK mortgage fraud cases worth £36 million were uncovered in 2008 compared with only 10 cases worth £3.7 million in 2007.
More on Regulation
Rules on individual accountability will have big impact, say lawyers
Operational risk head calls for better benchmarking across industry
Complexity of Libor scandal continues to drag out proceedings
Senior lawyer behind mortgage mis-selling settlements to step down
Sign up for Risk.net email alerts
Watch highlights of this year's London conference
Operational risk and the challenges of defining and dealing with conduct risk
Watch discussions and speakers from our North America conference
In the February 2014 editorial video, OpRisk's latest industry survey finds room for improvement in risk management
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.