First criminal prosecution for mortgage broker

Mortgage broker Vijay Kumar Sharma has been fined £6,000 at a magistrate’s court in the FSA’s first criminal prosecution for change of control failures

Sharma, sole director of mortgage broker Exetra (UK) Limited, pleaded guilty at City of Westminster Magistrates Court to charges of acquiring a controlling interest in the firm without giving the FSA prior notice of the acquisition and of making false or misleading statements to the FSA

Sharma was fined £3,000 for acquiring a controlling interest in a regulated firm without giving the FSA prior notice. He was also fined £3,000 for making false and misleading statements to the FSA and ordered to make a contribution towards the FSA’s costs

District Judge Purdy, delivering the verdict, said in court on Wednesday: “You chose to circumvent the process by not notifying the FSA because you must have known that it would mean your application would be refused. These provisions are designed to protect the public from those individuals who are not fit and proper. This sentence will act as deterrence to others.””