Member Article

FCA slap biggest ever fine on sole trader

The Financial Conduct Authority (FCA) has issued its biggest ever fine for a sole trader, following a several ‘sale and rent back’ transactions.

Birmingham’s Gurpreet Singh Chadda was fined £945, 277 and banned from working in the financial services industry for misleading customers who sold their houses under such arrangements.

Seven transactions were investigated by the FCA in which Chadda had assigned values to properties based on the purchasers’ mortgage valuations or his own opinion, and in one case even fabricated a mortgage valuation.

In three cases the sellers got less than half of the value of their property, and in two of these three cases, the seller only received 38% of the sale price of their homes.

The FCA scorned Chadda’s misconduct, saying he had exploited vulnerable people who were selling their homes in such a way due to financial difficulties.

Tracey McDermott, director of enforcement and financial crime, said: “Chadda’s misconduct is the most shocking we have seen from a home finance arranger. He is a disgrace to financial services. He deliberately misled his clients for his own personal gain and then repeatedly and cynically lied to the FCA.

“Chadda is not fit to work in regulated financial services and he presents a serious risk to customers and lenders alike with his dishonest and unscrupulous actions. The unprecedented level of the fine for a sole trader reflects our determination to deprive him of the gains he made as a result of his misconduct.”

This was posted in Bdaily's Members' News section by Tom Keighley .