A financial adviser has pleaded guilty to carrying on regulated activities without authorisation, the FCA has confirmed.

Larry Barreto pleaded guilty to two counts at Southwark Crown Court on 29 July, relating to advice provided and arrangements made regarding a series of regulated mortgage contracts between June 2014 and March 2018.

The FCA has stated that Barreto is an “unauthorised and prohibited person”, and as such could not provide regulated financial services.

He is also charged, along with Tassib Hussain, with an offence of committing fraud by false representation. Barreto traded as Barreto and Partners, an unauthorised financial services firm based in Nottingham, while Tassib Hussain is an accountant who ran Keystone Chartered Accountants, also based in Nottingham.

The pair’s alleged conspiracy involved mortgage clients of Barreto. The FCA’s investigation stated that had Barreto concluded clients had insufficient income to justify the mortgage they required, he would charge the client a fee which he would then pay in cash to Hussain, to create the false self-employment and employment documentation to support mortgage applications for clients with insufficient income. The FCA believes the total value of the mortgages applied for was around £3.8m.

They both deny committing the fraud offence and will face trial on 23 October 2023.

The FCA has confirmed the sentencing for the offences of carrying on unauthorised business will take place following the conclusion of the trial for the fraud offence.

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