FCA launches criminal proceedings against a ‘fraudulent’ adviser and accountant

The Financial Conduct Authority (FCA) has commenced criminal proceedings against Larry Barreto, who traded as Barreto and Partners, an unauthorised financial services firm, and Tassib Hussain, an accountant who ran Keystone Chartered Accountants, over a series of fraudulent mortgage applications made over the course of several years.

The alleged conspiracy involved mortgage clients of Mr Barreto. According to the FCA, if Mr Barreto concluded that they had insufficient income to justify the mortgage they required, he would charge the client a fee which he would then pay in cash to Mr Hussain, to create the 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.

The two defendants appeared at Westminster Magistrates’ Court on 21 April 2021. The case was sent to Southwark Crown Court for a Plea and Trial Preparation Hearing on 19 May 2021.

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