London Police Arrest 8 in 400 Million-Pound Mortgage Fraud Case

London police arrested seven men and one woman in connection with a suspected mortgage fraud valued at 400 million-pounds ($554 million).

More than 50 officers raided properties in London and southern England today, City of London Police said in a statement on its Web site. They acted on information provided by the U.K. Financial Services Authority, the statement said. The FSA said it alerted police as part of a crackdown on mortgage fraud.

“We want to send out a strong message to deter people from committing the offense,” Cerris Tavinor, an FSA spokeswoman, said in telephone interview.

The investigation centers on mortgage broker Eastbourne Financial Services, the statement said. The Bexhill-on-Sea, England-based company is in liquidation and its operating license was revoked by the FSA earlier this month, according to the FSA register.

Calls to two numbers listed for Eastbourne Financial couldn’t be connected, according to a recorded message.

“The scale of today’s operation shows City of London Police’s commitment to investigate frauds and bring those behind them to justice,” Detective Superintendent Bob Wishart said in the statement.

To contact the reporter on this story: James Lumley in London at jlumley1@bloomberg.net.

To contact the editor responsible for this story: Anthony Aarons in London at aaarons@bloomberg.net.

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