London Property Investments (UK) Limited (LPI) and NPI Holdings Limited (NPI) have been found guilty of operating without FCA authorization, with LPI arranging mortgages and NPI purchasing properties to rent back to sellers. The director of both companies, Daniel Stevens, along with his father, Tony Stevens, were held accountable for these actions.

In his ruling, Mr. Justice Fancourt characterized these violations as “serious contraventions,” noting that they involved “high levels of culpability, including deception of consumers and lenders, and exploitation of consumers’ vulnerabilities.”

The court has ordered the four defendants to pay approximately £4 million to the FCA. This payment marks a significant step forward, enabling the FCA to recover funds before compensating affected individuals.

LPI has also been mandated to remove restrictions placed on the titles of four properties. These restrictions had been used to coerce individuals into paying excessive fees to LPI, preventing them from selling or re-mortgaging their properties unless the fees were paid. In some cases, this left individuals trapped in high-interest bridging loans.

Steve Smart, the FCA’s Executive Director of Enforcement and Market Oversight, commented: “These fraudulent brokers targeted vulnerable individuals who were already facing financial difficulties, ensnaring them with outrageous fees. The defendants created a web of deception that caused significant harm to both consumers and lenders. Despite the complexity of the case, the ruling confirms the seriousness of these breaches. We will now move forward to hold LPI, NPI, Daniel, and Tony Stevens accountable for the losses inflicted on their victims.”