More than 100 law firms suspected of mortgage fraud were investigated last year by regulators the Solicitors Regulation Authority (SRA), which is estimated to have saved mortgage lenders over GBP 15m.
The SRA, which supervises 113,000 solicitors, completed 106 investigations into firms where wrongdoing was suspected in relation to mortgages or property.
Of the 106 investigations, 22 firms have been closed down, 24 cases have been referred to the police for investigation, and 30 cases have been referred by the SRA to the Solicitors Disciplinary Tribunal, which has the power to strike off solicitors and there are more investigations in the pipeline.
The rising numbers of property fraud cases involving solicitors has been marked, rising from a reported 85 cases in 2005 to 400 in 2009.
The SRA has issued advice and a warning to all solicitors’ firms telling them to be alert for suspicious transactions, reminding them of their duty to report suspicions and their own professional and moral obligations.
The City of London Police, said it remained committed to working closely with the SRA during 2010 and beyond to target corrupt solicitors who the police said can be “significant enablers” of property fraud.
Steve Wilmott, head of the SRA’s fraud and confidential intelligence bureau, said the SRA had stepped up its work to prevent, deter and tackle mortgage fraud and had recruited two dedicated fraud officers, increasing staff at the fraud unit to 18.
“Mortgage fraud is a serious issue for homeowners and lenders. We are working closely with major lenders and the police to share intelligence and take prompt action.” he said.
Lloyd's Banking Group's MD for mortgages, Dan Watkins, said; "The Financial services industry faces a serious and continued threat of mortgage fraud that is orchstrated by rogue solicitors. Lloyds Banking Group supports all efforts that are made to combat this threat."
Comments