Mortgage fraud broker bankrupted by FSA

The Financial Services Authority (FSA) has secured a bankruptcy order in the High Court against former mortgage broker Sadia Nasir for non-payment of a £129,000 penalty levied on her by the FSA for mortgage fraud.

This is the first time the FSA has taken bankruptcy proceedings for an unpaid fine. A bankruptcy trustee will be appointed as manager of Ms Nasir's estate to sell her assets sufficient to pay the outstanding debt to the FSA.

Ms Nasir, who was based in Ilford, east London, was one of dozens of brokers that have been fined for committing mortgage fraud over the past few years. The FSA said that she made no serious attempt to pay the penalty before bankruptcy proceedings began.

"In the past three years we have levied fines totalling more than £900,000 in relation to mortgage fraud. Ms Nasir was the first mortgage broker to receive a six-figure penalty for using her position in an authorised firm to commit mortgage fraud," said Margaret Cole, the director of enforcement at the FSA. "This bankruptcy action shows our determination to achieve credible deterrence in this area. We are determined to pursue recovery of our penalties by all means available to us."