The former director of Northern Rock has been fined and banned by the Financial Services Authority (FSA) for misreporting mortgage arrears figures.
David Jones, former finance director of Northern Rock, was given a £320,000 fine and prohibited from performing any function in relation to any regulated activity as a result of misconduct which is believed to have started in mid January 2007.
An FSA investigation found that he agreed to allow false mortgage arrears figures to appear in explanatory text published with the firm's 2006 annual accounts, even though reporting correct data would have either increased arrears by over 50 per cent or possessions figures by approximately 300 per cent.
"For nearly a year, Mr Jones was responsible for the continued misreporting of arrears and possessions figures on a monthly basis to Northern Rock's assets & liabilities committee and, on a quarterly basis, to the Council of Mortgage Lenders," the FSA said.
In April, Jones quit his post as Northern Rock finance director in the middle of an investigation into the organisation by the FSA.
Posted by Claire Robin
