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
Industry concerns over unintended consequences of tougher regulation
NDFs in 10 currencies to be authorised for clearing in Europe
SEC fines HFT firm $1m for using algorithms to sway Nasdaq closes
Operational losses to be borne solely by CCPs, says CPMI-Iosco
Sign up for Risk.net email alerts
Sponsored webinar: IBM
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
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.