Solicitor struck off over £8m mortgage fraud

An Essex solicitor involved in an £8m mortgage fraud has been struck off by the Solicitors Regulation Authority.

Mahmood Ali, whose whereabouts are unknown, worked at Essex firm Montague Mason, which is no longer in operation after being shut down by the SRA in relation to breaches of the solicitors accounts rules. He submitted false paperwork in connection with 32 fraudulent mortgage applications.

Last month four men were jailed for a total of 15 years for their involvement in the scam against Abbey and Birmingham Midshires (now part of Santander and Lloyds Banking Group respectively) between June and December 2008.

The four pleaded guilty to several fraud-related offences at Southwark Crown Court in December 2009, but Ali has not been traced.

The court heard that the gang identified suitable properties across south-east England to use for false mortgage applications, without approaching the owners.

The fraudulent mortgages, totalling £7.8m, were finalised when false paperwork was completed in the name of the solicitors, including the certificates of title requesting that the banks release the funds.

Ali was due to appear before the Solicitors Disciplinary Tribunal on 23 March, but did not attend. He was struck off and ordered to pay £15,000 costs.

Meanwhile the SRA has said it will meet the Council of Mortgage Lenders to discuss the council’s concerns over solicitors’ involvement in fraud.