27Dec

The Financial Conduct Authority (FCA) has announced that Graham Patrick Lockstone has been prohibited from carrying out any regulated activities, following his conviction for fraud and other offences.

Bristol-based Mr Lockstone was previously a director, and the individual responsible for insurance mediation, at Express Mortgage Solutions Limited. On April 13 2016, he was convicted at Birmingham Crown Court of one count of “conspiracy to dishonestly make false representation to make gain for self/another or cause loss/expose other to risk”, and of one count of “making/supplying articles for use in fraud.” A few days later, he was sentenced to 42 months in prison, but had this reduced to 33 months on appeal, and he was released from HMP Weyhill on licence on May 26 2017, having served just over one year of his sentence.

The convictions relate directly to his activities while a director of Express Mortgage Solutions. His misconduct included:

  • Dishonestly making false representations regarding the employment and income details of a third party
  • Dishonestly making false representations regarding the rental value of a property
  • Falsely representing that a third party firm had made a mortgage offer on the property
  • Creating false documents, whilst claiming that these had been created by third party firms, but while knowing that they were designed for use in connection with fraudulent activities

Following a conviction for offences as serious as this, the fact that the FCA has chosen to impose the ultimate sanction available to it, and to withdraw his authorisation to carry out any form of financial services activity, comes as no surprise.

The FCA’s Final Notice says that:

“Mr Lockstone is not a fit and proper person to perform any function in relation to any regulated activity … as his conduct demonstrated a serious lack of honesty and integrity, and that he poses a significant risk to customers.”

The Notice also makes reference to the Court of Appeal judgement by Judge Eyre QC. The FCA notes that:

“Those remarks stated that Graham Lockstone was a skilled and experienced professional in the financial world. He knew how financing operated and used his contacts. He had been involved in the fraudulent transaction, as well as being involved later in the production of false documents for use in fraud. His offending was viewed by the [sentencing] judge as a sophisticated abuse of his position and skills. It was deliberately dishonest behaviour.”

The FCA’s fit and proper’ person requirements require holders of key positions within authorised firms to display the highest standards of: honesty, integrity and reputation; competence and capability; and financial soundness.

The information shown in this article was correct at the time of publication. Articles are not routinely reviewed and as such are not updated. Please be aware the facts, circumstances or legal position may change after publication of the article.