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March 31, 2010    

Glaswegian admits to £250k self-cert mortgage fraud

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by Gill Montia
”Glaswegian

A middle-aged Glaswegian who has been dubbed a local “gangster” has admitted to a £250,000 mortgage fraud.

Edward Lyons obtained self-cert mortgages to purchase properties in East Kilbride and Cumbernauld, claiming he was self-employed and earning up to £48,000 a year.

At the time, he was working on a community initiative and earning a salary of £20,000.

Appearing before Glasgow Sheriff Court, Mr Lyons admitted obtaining £119,000 from Preferred Mortgages between May 2003 and August 2005 to buy a house in East Kilbride, which he later sold, pocketing £74,000.

He also admitted to defrauding £140,000 from HBOS between June 2004 and January 2005, to buy his home in Cumbernauld.

According to a BBC report, the fraudster used profits from the sale of the East Kilbride house to buy his daughter a tanning salon in Dundee, and has therefore also entered a guilty plea to an offence under the Proceeds of Crime Act.

Earlier this month, the National Fraud Authority (NFA) urged lenders to continue combating mortgage fraud to prevent the crime from returning to previous levels, as the economy recovers.

The Authority pointed out that almost £144 billion was loaned in mortgages in 2009, representing an attractive target for criminals.

The value of UK mortgage fraud is estimated at £1 billion a year and without high levels of vigilance, the NFA believes the figure could increase.

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