Unveiling Financial Deception: Accountant Guilty in £3m Mortgage Fraud Scandal

November 16, 2023

In a startling revelation, Larry Barreto, an accountant based in the East Midlands, and Tassib Hussain, a former financial adviser, have been found guilty of orchestrating a £3 million mortgage fraud scheme. This illicit operation, involving fraudulent mortgage applications, has significant implications for both individuals and the financial institutions involved.

Unraveling the Fraudulent Scheme

The Guilty Verdict

Larry Barreto faced 11 charges of fraud by false representation, as revealed in the prosecution brought by the Financial Conduct Authority (FCA).The charges stem from Barreto's involvement in dishonestly inflating the income of mortgage applicants, ultimately resulting in around £3 million worth of falsely applied mortgages.

Co-Conspirator's Admission

Tassib Hussain, a chartered accountant and Barreto's co-defendant, pleaded guilty to fraud by false representation. Operating as a partner at Keystone Chartered Accountants until its dissolution in 2021, Hussain played a pivotal role in creating false documentation to support fraudulent mortgage applications.

The Details of Deceit

Unlawful Mortgage Advice

Between January 2015 and March 2018, Barreto provided mortgage advice without the necessary FCA authorization. In a shocking revelation, he not only offered unauthorized advice but also dishonestly inflated the income of mortgage applicants in 11 cases, further compounding the deceit.

The Cash Trail

Barreto charged clients a fee for his services, which he then paid in cash to his accountant, Hussain. The latter, in turn, created false self-employment and employment documentation to support mortgage applications for clients with insufficient income, perpetuating the fraudulent scheme.

Falsified Documentation

Hussain went to great lengths to create a façade of legitimacy. He produced multiple documents purportedly issued by HMRC, containing false income figures. These documents were then forwarded to lenders by Barreto, misleading them into approving mortgages based on inaccurate financial information.

Implications for Borrowers and Lenders

Unsustainable Debt Risks

The fraudulent actions of Barreto and Hussain placed borrowers at risk of taking on unsustainable levels of debt. The lenders, unaware of the deception, granted mortgages on a false basis, exposing themselves to substantial financial losses.

Lenders in Peril

The guilty verdict emphasizes the significant risks faced by lenders incases of financial deception. The unsuspecting lenders granted mortgages based on manipulated information, underscoring the importance of robust measures to prevent such fraudulent activities.

Navigating the Aftermath with Tax Investigation Services

Safeguard Your Finances with Expert Assistance

In the aftermath of such financial scandals, safeguarding your financial interests becomes paramount. Expert tax investigation services can provide the necessary support to navigate the complexities of financial fraud investigations, ensuring compliance and protecting your assets.

Consult with Elena Meskhi and Co. for Expert Guidance

For personalized guidance in understanding and addressing the implications of financial fraud, reach out to Elena Meskhi and Co. Our expert team is dedicated to assisting you in navigating the challenges posed by tax investigations. Book a consultation today and take proactive steps to safeguard your financial well-being.


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