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Two more mortgage brokers were banned by the FSA last week as the regulator continues its clamp down on mortgage fraud.

Omotayo Fawole, sole controller of Woolwich-based Oasis Mortgage and Financial Services Limited (Oasis), was fined £100,000 and banned by the FSA for submitting false applications.

The City watchdog found Mr Fawole obtained a mortgage after submitting an application that significantly overstated the profits of Oasis and his own income and for submitting a mortgage application for an Oasis employee that significantly overstated their earnings.

The FSA also banned Ian James, sole director and approved person for Doncaster-based Orchard House Mortgages Limited, known as Orchard House, for involvement in mortgage fraud.

Mr James was found by the regulator to have applied for a personal loan supported by a falsified payslip and made a false claim to the bank overstating his income.

Mr James' wife, Nicola James, who acted as the company secretary, was also banned for jointly submitting an application for a personal loan.

The FSA found Mr and Mrs James' obtained a bank loan of just in excess of £9000, including interest, by submitting two false payslips with fake salaries and employment histories.

The watchdog also cancelled the permissions of both Orchard House and Oasis.

Jonathan Phelan, head of retail enforcement for the FSA, said: "As the approved person at Orchard House, Mr James had overall responsibility for ensuring the firm conducted its business with integrity.

"He showed a lack of honesty and integrity in relation to his own personal financial dealings. Given our concerns about brokers' use of false payslips on customers' mortgage applications, we applied the same standards to him and we concluded that he could not be trusted to occupy any position in relation to customers' mortgage applications.

"A prohibition order is therefore necessary in line with the FSA's tough stance against people lacking honesty and integrity who wish to work in authorised financial services firms."

Margaret Cole, director of enforcement manager for the FSA, said: "We have banned a number of mortgage brokers and others this year in connection with mortgage fraud and we will continue to make examples of people who commit mortgage fraud until behaviour changes.

"Perpetrators of fraud will increasingly find themselves facing bans and significant fines, as well as action by the police or other agencies aimed at confiscation of assets."

This year the FSA has banned 18 mortgage brokers and others involvement in submitting false mortgage applications.

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