Wednesday, December 22, 2010

The Tip of a Very Big Iceberg

Apprentice contestant Christopher Farrell admits fraud

A former contestant on BBC's The Apprentice altered mortgage applications to boost his monthly earnings, a court has heard. Mortgage broker Christopher Farrell, 29, inflated clients' incomes to help them secure home loans - and earn himself commission.

Posted by wdbeast @ 05:02 PM (2434 views)
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12 thoughts on “The Tip of a Very Big Iceberg

  • LOL, small fry.

    There are much bigger fish. Stories like this make me sick. It’s all the peoples fault, accept the austerity.

    Timmy and crew are innocent! No wonder media firms are being bailed out, or is that bought off.

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  • I blame the bosses for not seeing this sort of thing happening under their noses. The UK average wage did not suddenly double or treble overnight. Those who have taken out such liar mortgages must also be guilty of fraud – many people were given mortgages which they knew they should never have had. The bankers will be only too happy that those who took out the debt will continue paying for it at all costs.

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  • Christopher Farrell YOUR FIRED!

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  • Some 27 in every 10,000 mortgage applications were detected as fraudulent in Q3 in 2010, shows the latest fraud data from Experian. The mortgage market experienced the second highest fraud rate during Q3 2010. Some 27 in every 10,000 mortgage applications were detected as fraudulent, compared with 25 in every 10,000 in Q3 2009.

    Some 96% of mortgage fraud attempts during Q3 were first-party frauds, which typically involves individuals attempting to hide adverse credit histories or misrepresenting their employment status to try and secure credit and other financial services which might not have been suitable for them.

    Experian says there has been a surge in loan fraud over the past 12 months, with a 57% increase in fraudulent activity recorded during Q3 compared with the same period in 2009.

    Loan fraud activity is now approaching pre-2008 levels, with seven out of every 10,000 applications identified as fraudulent.

    In Q3 2010 first party fraud accounted for 73% of all incidents of fraud, up from 52% in Q3 2009.

    The increases in first party fraud were particularly prevalent in loans, where first party fraud increased to 89% from 35% in Q3 2009, and current accounts, where first party fraud increased to 72% from 40% in Q3 2009.

    Nick Mothershaw, director of fraud and identity solutions at Experian, says: “We have witnessed a rise in fraudulent activity across several sectors of the market in the last quarter when compared to Q3 2009. There has been a significant increase in automotive fraud compared to the same time last year and loan fraud is up by almost 60%.

    “Increased fraud levels mean that it has never been more important to ensure that applications for new credit facilities are analysed for signs of fraudulent activity.

    “Simple steps organisations can take to mitigate risk include robust checking of new applications for credit using tools that reveal first party fraud and organised fraud rings, continually reassessing fraud risk across existing accounts, and introducing true identity authentication using facts only a genuine applicant will know on all products, not just the higher risk ones.”

    SOURCE (todays mortgagestrategy) http://www.mortgagestrategy.co.uk/1023954.article?cmpid=MSE01&cmptype=newsletter&email=true

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  • the number cruncher says:

    tip of the iceberg – there will be hundreds, if not thousands, of mortgage brokers who have been doing exactly the same thing over the last 8 years.

    He is the perfect employee for a fraudster – lots of drive, not a lot of brains.

    Alan Sugar is no better, after being an innovator, cutting costs in production technology and outscourcing of manufacture and bringing computing to the masses – as competition became to intense he jumped ship and ended up as a snivelling little property developer, his fortune to be misspent on collecting economic rent instead of competing in the real world economy.

    I blame an economic system that promotes the collection of economic rent as the most lucrative of business to be involved in and not innovation and production. Another sound lesson in why we should all be Georgist’s and promoting Land Value Tax

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  • Well wadya know!??!?

    This is THE KEY to the hpi phenomenon.

    It makes me laugh to see jack c say that “7 in 10,000” mortgages are fraudulent!! WHAT A BLEEDIN’ JOKE!!

    Well over half of them are. Anything over 3 x income is fraud. Simple. Period. And most mortgages over the last 7-10 years in particular have been LIAR LOANS.

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  • Very well said Number Cruncher. This is the tip of an iceberg. I know a mortgage broker and this type of activity seems to be the norm.

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  • Strange that, it is also common at the more target driven banks and increased scrutiny is why many mortgage brokers and financial advisers have taken up alternative employment as increased scrutiny meant they too couldn’t afford their own mortgages on their reduced commission.

    Strange old world isn’t it, human nature and greed always comes out when the scrutineers eyes are averted.

    I’m quite frankly amazed at how low the official figures are but then again as long as you keep paying no-one will look.

    Also if you have a dodgy one beware the friendly call from your current lender asking if you would like a review to save you money, they are using this friendly call as a ruse to root out their high risk customers, decline their offer and say you are happy with your current mortgage and intend to pay it off in a few years when auntie flo dies or something.

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  • Mrmagooisagovteconomist says:

    Surely we are all missing a point, these fraudulent wideboys were cogs in the engorged credit machine and did very well out of it. If fraud can be detected then why cant the proceeds of crime unit take away all their ill gotten gains ? If that aint payback what is ?

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  • charlie brooker says:

    The Apprentice’s whole mission is to convey the message that aggressive narcissism results in success so it’s no surprise one of their contestants has been found to be a fraudster.

    I don’t doubt many of the other contestants have been and continue to be guilty of similar underhand if not downright criminal behaviour in both their shady private and professional lives.

    Nice to see the law catch up to him. I would like to see other Apprentice contestants brought to book where guilty, as well as anyone else who contributed to causing the financial crisis.

    Shame it’s taken the law this long to kick into action. You have to wonder if the country hadn’t gone bankrupt would the law would have turned a blind eye to the activities of these people forever and a day? Has the law only decided to pursue show trials because the country has now gone bankrupt? Has the criminal justice system only learnt the dangers posed these people’s activities after the event? I ask that because here on HPC knew well the dangers beforehand. It’s a bit bloody late. They could have taken the preventive measures we pleaded for, but no. Horse, stable, door, shut, bolted. You make the sentence.

    As for The Apprentice? It was just one of many TV shows during the noughties (naughties) that encouraged a surreptitious, sociopathic mindset. It’s time they were all removed from the air permanently and consigned to the history books.

    People like Christopher Farrell not only seized the lifeboats, they gilded them, sinking the good ship Britannia taking all souls with her.

    Scum.

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  • This guy was (almost) still in short trousers when this fraud was first exposed big time in 2003 – I remember thinking then that it would kill the housing bubble, but the entire financial world turned a blind eye – in order to keep boosting their own incomes. They are all every bit as guilty as Mr Farrell.

    See Mortgage customers ‘urged to lie’

    (Apologies if this appears twice – managed to lose it, so not sure if it got ‘submitted’ without the password or not..)

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  • tenyearstogetmymoneyback says:

    A similar sentance to fellow fraudster Bernard Madoff would be appropriate.

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