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In February Kent Police charged Gordon Benville, a Deal-based adviser trading under the name of Kingsfield, with a total of 20 offences of fraud and obtaining money transfers by deception.

Mr Deal was arrested in October on suspicion of obtaining £400,000 through deception from mortgage clients.

It was alleged he would ask clients to sign incomplete remortgage applications.

In each case, a higher loan figure was entered than the one required by the client and Mr Benville would then ask the client to send him a cheque to refund the difference.

Last week the FSCS announced it was stepping in to protect individuals who had lost money to Mr Benville.

Jonathan Clark, director of claims for the FSCS, said: "It is essential a scheme like the FSCS exists to ensure consumers can get compensation when a firm fails. We have started paying claims against the firm and are here to help those who think they may have a claim."