On 27 March 2024, Larry Barreto and Tassib Hussain were sentenced for fraud offences following a prosecution brought by the FCA, which saw the pair convicted in November 2023.
Mr Barreto was sentenced to a total of 2 years’ imprisonment, suspended for 2 years, with 120 hours of unpaid work, for 11 counts of fraud by false representation and 2 counts of carrying on regulated activities without authorisation.
Mr Hussain was sentenced to 16 months’ imprisonment, suspended for 2 years, with 120 hours of unpaid work, for one count of fraud by false representation relating to 11 mortgage applications.
Between 1 January 2015 and March 2018, Mr Barreto gave advice in return for a fee, without the necessary FCA authorisation, to people looking to take out residential mortgages.
In 11 cases, he dishonestly inflated the applicant’s income in their application to the lender. Mr Barreto would then pay Mr Hussain, who created false self-employment and employment documentation to support the inflated mortgage applications for clients with insufficient income.
Mr Hussain produced multiple fake HMRC documents that contained false income figures, which in each case were sent on to the lender by Mr Barreto. With Mr Barreto’s knowledge, Mr Hussain also claimed to employ 2 of the applicants and produced false contracts of employment and payslips, which Mr Barreto also forwarded to lenders.
As a result of the fraud, lenders granted mortgages to several applicants on a false basis, placing them and their customers at greater risk beyond financial loss. The total value of the mortgages applied for was around £3 million.
In passing sentence HHJ Cole, sitting at Southwark Crown Court, said:
‘You are guilty of systematic mortgage fraud’ and have ‘abused your position…it ruins the integrity of the system to have dishonest players in it’.
Therese Chambers, Joint Executive Director of Enforcement and Market Oversight, said:
‘Larry Barreto and Tassib Hussain chose a selfish path in pursuit of their own greed. Their dishonesty unnecessarily put people at risk of taking out unaffordable loans and losing their homes.
‘Their offending also undermined the reputation of the industry, and the legitimate advisers that work in it.
‘These sentences should send a clear signal of the lengths we and the courts will go to catch and prosecute those who commit such acts of dishonesty. And for Mr Barreto and Mr Hussain the consequences of their offending will have far-reaching impacts for them beyond their sentences.’
The FCA has begun confiscation proceedings to recover the considerable financial benefit obtained by the defendants.
Notes to editors
- The FCA commenced criminal proceedings against Larry Barreto and Tassib Hussain for fraud and unauthorised business offences in April 2021[1].
- Larry Barreto’s date of birth is 6 May 1955.
- Tassib Hussain’s date of birth is 13 November 1979.
- Mr Barreto pleaded guilty to 2 counts of carrying on regulated activities without authorisation at an earlier hearing[2] on 29 July 2022.
- Mr Hussain pleaded guilty to fraud by false representations at the start of the trial in November 2023.
- Mr Barreto was found guilty of 11 counts of fraud[3] on 15 November 2023.
- Find out more information about the FCA[4].