News in brief
Crime syndicates target residential and commercial property
Organised crime syndicates have been targeting residential and commercial property in increasingly sophisticated mortgage frauds. There is concern that the predicted slow-down in house prices, exacerbated by the Northern Rock issue and the credit crunch, could expose multi-million-pound frauds involving hugely overvalued and, in thousands of cases, deteriorating properties that could leave the market highly unstable.
There is growing concern that there has been a systematic attack on the mortgage system by linked frauds. The Financial Services Authority, which has been investigating poor lending practices in the sub-prime market, set up an early warning system on possible frauds with lenders. It has received about 200 tip-offs, 32 of which were strong enough to warrant further investigation.
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This article is for your general information and use only and is not intended to address your particular requirements. This article is based on our understanding as at the 11 October 2007. The content of the article should not be relied upon in its entirety. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without appropriate professional advice after a thorough examination of their particular situation. Any references made to the Pre-Budget Report may be subject to the Finance Bill becoming law. |