FCA commences criminal proceedings against duo over £3.8m mortgage fraud

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.

Both are charged with conspiracy to commit fraud by false representation and Baretto faces a further two charges of carrying on regulated activities without authorisation.

The fraud charges relate to a series of mortgage applications made between January 2015 and March 2018.

The alleged conspiracy involved mortgage clients of Barreto, who concluded that they had insufficient income to justify the mortgage they required, and would charge the client a fee. He would then pay this in cash to Hussain, who would 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. Barreto is an unauthorised and prohibited person and as such could not provide regulated financial services.

Larry Barreto and Tassib Hussain appeared at Westminster Magistrates’ Court on 21st April and the case was sent to Southwark Crown Court for a Plea and Trial Preparation Hearing on 19th May.

Fraud is punishable by a fine and/or up to 10 years’ imprisonment. Unauthorised business is punishable by a fine and/or up to 2 years’ imprisonment.