Six arrested for fraud

Assisted by City of London Fraud Squad officers, the Nottinghamshire Police Fraud and Financial Investigation Unit executed warrants at six addresses in the Nottingham area and searched two further premises in northwest England.

Police believe the suspects, who have been bailed pending further inquiries, used false documents to obtain mortgages for several properties in and around Nottingham.

Nottinghamshire Police has not revealed the lenders involved, but added that it is continuing to receiving assistance in the investigation from institutions such as the FSA, the Solicitors Regulatory Authority, Council of Mortgage Lenders and the City of London Police Fraud Department.

Kevin Fidler, detective inspector at Nottinghamshire Police, said the fraud investigation was part of a commitment to tackle organised crime.

He added: “We have been looking at this case for more than a year and have committed significant resources to it. The lenders are major high street firms but we cannot reveal their names because they are victims. We have bailed the suspects until June 2010 and hope to reach a decision by then on whether to charge them.”

Jonathan Cornell, communications manager at First Action Finance, said the case served as a reminder to the industry that fraud was still a problem.

He added: “Although it may be harder for people to commit fraud with increased checks from lenders, fraudsters can adapt and find new ways of trying to defraud an organisation of money and lenders must adapt to their new methods.”   

Brian Murphy, head of lending at Mortgage Advice Bureau, said the industry needed to ensure that loopholes through which people could commit fraud were closed.

He added: “The market will never be rid of fraud. As an industry, we must do our best to stamp out fraud and constant due diligence is the best method.”