London mortgage fraud (update 1)
August 31, 2007 at 8:42 am | In credit crunch, crime, london, mortgage fraud | Leave a CommentAfter a telephone conversation with Detective Superintendent Oliver Shaw of City of London police, we can further reveal some of the issues surrounding the current London mortgage fraud investigation.
Firstly, Detective Shaw highlighted that the investigation is not just limited to London, but part of a UK wide program, being run by the Serious Fraud Office. He explained that the police led review will ascertain the fraud geographic hotspots and will also investigate agents, valuers and mortgage brokers. The police are also working closely with the FSA and other government bodies, which hold data on dubious finance brokers and companies which have been prosecuted or struck off their registrar.
So far, the investigation has revealed no complicity from lending institutions. In the past, some bank employees have been known to either sell institutional data to criminals, or to overlook due diligence procedures, presumably for an ‘under the table’ reward. So far the investigation has highlighted no such activity, focusing mainly on exaggerated mortgage valuations and fraudulent ID documents.
The investigation is likely to conclude ‘around Christmas’ after which further action will take place. The police are intent on minimizing the problems and putting mechanisms in place to prevent future exploitations. They are also looking to identify the most successful criminal gangs and prosecute them.
Detective Shaw acknowledged that the police are ‘well aware’ of the economic dangers of potentially flooding an already cooling market with property that were obtained fraudulently. In the early 90’s property recession, a similar problem occurred and the property crash forced banks to review their loan books after defaults and repossessions.
When the banks remarketed repossessed properties they achieved prices way under valuations which were originally suggested when the loan was processed. In today’s cooling market, the same problem is likely to occur and the banks are currently doing everything they can and looking at every angle in order to mitigate their losses.
London mortgage fraud investigation
August 30, 2007 at 9:53 am | In credit crunch, crime, london, mortgage fraud, subprime | Leave a CommentCity of London Police have launched an investigation into allegations of commercial and residential mortgage fraud in London. Reports have led police to believe that criminal gangs, working with corrupt valuers and solicitors, are obtaining fraudulent mortgages, enabling them to build multi-million pound commercial and buy-to-let property portfolios worth millions of pounds. The investigation was launched after a rise in the number of complaints about the use of fake self-cert documents and fraudulent papers by individuals to inflate their earnings according to The Times:
Fake P60 forms, used to illustrate earnings, are widely available online. The Council of Mortgage Lenders (CML) yesterday confirmed that lenders face serious risks from fake documentation rackets … Detective Chief Inspector Oliver Shaw, of the City of London fraud squad, said: “We have identified criminal networks that have obtained very large commercial and residential portfolios by working with corrupt valuers and solicitors. … James Cotton, from London & Country, a broker, said yesterday that lenders also faced risks from self-certification mortgages: “We have seen the impact of people lying in America. It is the same here. It’s just difficult to know the extent to which borrowers have lied about their income because the point of self-certification deals is that lenders don’t check.”
The first stage of the police investigation – establishing the lenders’ potential liability over defaults from fraudulent loans – is expected to be completed by the end of the year.
So far, City Police have released no details on the extent of the alleged fraud, or names of companies or individuals who are being investigated or arrested.
Help catch blogstalker Felicity J Lowde
May 28, 2007 at 4:46 pm | In agents, blogging, crime, london | 8 Comments
This story is weird.
Social blogger Rachel from North London (pictured) is the victim of blogstalker Felicity J Lowde.
Lowde was found guilty of harassment recently, but is on the run and blogging a strange rant/defense over here.
Rachel is a heroic 7/7 bomb survivor, and set up her blog to help other victims of the tragedy, yet Felicity J Lowde has the audacity to accuse her of “deserting the dead”.
The story gets weirder as one of the most popular estate agents in London almost goes by the same name as the apparent Ms Lowde(Felicity J. Lord), 
which leaves me wondering that perhaps the reason the police can’t catch up with Ms. Lowde is because she’s using a pseudonym. Nevertheless, can all this negative publicity be good for Felicity J Lord?
UPDATE: May 25, 2007; Lowde captured and in custody
Worlds greatest credit card heist
March 30, 2007 at 11:35 am | In crime, fraud | Leave a Comment
TK Maxx admits to having credit card details for 45 million of its customers stolen between 2002 – 2005. The scam was first spotted last December, but the company only made the announcement yesterday.
More from The Times
STATEMENT FROM NATIONWIDE RE FSA FINE
February 14, 2007 at 4:48 pm | In crime, nationwide | Leave a CommentThe Financial Services Authority (FSA) has today fined Nationwide Building Society (Nationwide) £980,000 for failing to have effective systems and controls to manage its information security risks. The failings came to light following the theft of a laptop from a Nationwide employee’s home last year. (FSA Statement).
This afternoon, Nationwide issued the following statement in response to the fine:
The FSA has today announced that it has imposed a fine on Nationwide as a result of an investigation following the theft of a laptop computer from an employee’s home in August last year.
Philip Williamson, Nationwide’s chief executive, said: “We have extensive security procedures in place, but in this isolated incident our systems of control were found wanting. We have made changes to fill the gap and improve our procedures further.
“Towards the end of last year I sent a letter to every one of our members telling them about this matter and apologising for any concern it may have caused them. I would like to reiterate that apology to our members and assure them that we have taken action to tighten our already high security procedures.
“To set people’s minds at rest I wish to emphasise that there has been no loss of money from our customers’ accounts as a result of this incident. Our customers have the additional assurance that they are protected by the Society’s customer promise that ‘If you are the innocent victim of fraud, you will not lose out.’”
* The laptop was stolen in a domestic burglary from an employee’s home, in August of last year
* We and the police believe it was stolen for its intrinsic value as a laptop, rather than for the information it contained
* The laptop was security protected and the information on it, which was to be used for marketing purposes, cannot be used on its own to commit identity fraud
* There were no PINs, passwords, account balance information or memorable data relating to any customers
The police, the FSA and the Information Commissioner were informed of the theft at the time and Nationwide has been co-operating with them since.
Nationwide welcomes the fact that the FSA acknowledges that the Society has:
* Taken a range of additional measures to increase security around accounts
* Informed customers of the loss of the information
* Affirmed its existing policy of reimbursing customers who are innocent victims of fraud
* Commissioned a comprehensive review of information security procedures and controls
"Bomb explodes" at Congestion Charge office
February 5, 2007 at 1:27 pm | In crime, london | Leave a Comment
Wasn’t me, I swear it …
A letter bomb has exploded at the London HQ of congestion charge firm Capita. A female employee at the office in Victoria Street was slightly injured – she is understood to have opened the envelope.
Victoria Street has been sealed off from Westminster Abbey to just beyond Scotland Yard, with an inner cordon preventing members of the public accessing the building where the incident took place.
All six floors of the office were evacuated.
Capita manages a number of high-profile government IT services including the London congestion charge, the Criminal Records Bureau and revenue collection from TV licensing.
In March last year Rod Aldridge quit as chairman after claims he donated £1m to Labour resulting in the firm receiving Government contracts.
Ipswich Murders
December 13, 2006 at 1:20 pm | In UK, crime, london, politics | Leave a Comment
It’s amazing that with all the CCTV cameras, Congestion Charge camera’s and British people being the most watched on earth, that something like this is happening. Maybe if the government spent a bit more resources monitoring the streets instead of policing parking tickets, we could avoid these tragic events from happening.
One year anniversary of Pakistan earthquate, authorities hunt developers
October 11, 2006 at 6:37 am | In crime, pakistan | Leave a Comment
The first anniversary of the devastating Pakistani earthquake was held on Sunday. The tragedy claimed 80,000 lives; left over 100,000 seriously injured and displaced 3.5 million.
Meanwhile the hunt is on for 3 Pakistani developers who are reportedly hiding out in the UK. Interpol has issued warrants for Ramzan Khokhar, his wife Kahkashan Khokhar and Abdul Hafiz Sheikh.
The Khokhar’s owned the Margalla Towers in Islamabad believed to contain up to sixty apartments and collapsed in the earthquake, killing hundreds. Nearly fifty people were rescued from the towers and local authorities are holding the 3 named individuals responsible with the faulty construction they claim caused the towers to collapse. Abdul Sheikh was the architect.
Google Maps: Crime, Coffee Mashup!
October 4, 2006 at 5:57 am | In crime, google maps, new york | 1 CommentFor the bankrobber who needs that extra caffeine boost; Curbed NY is offering the ultimate crimecoffee mashup! 
Sweet, check it out here
Indian estate agent adbucted
September 14, 2006 at 4:58 am | In agents, crime, india | 4 CommentsThree persons abducted a real estate agent when he went for a morning walk in Banjara Hills on Wednesday. The abductors demanded a ransom of Rs. 1 crore ($20,000) for his release.
Real estate businessman G. Krishnam Raju, (67) came out of his house in Rao and Raju Colony at around 6 a.m along with his pet dog. He barely walked a few metres when three persons jumped out of a white car and forced him into the vehicle.
A pair of shoe sworn by the victim were found at the spot. [details]
CORRECTION: Rs. 1 crore ~= US$216,748
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