East London mortgage broker Sadia Nasir has been bankrupted by the Financial Services Authority (FSA) after failing to pay a six-figure fine.

Nasir, who was found guilty of multiple fraudulent mortgage applications a year ago, was handed a £129,000 fine by the FSA which included clawing back £29,000 of illegal profits she made.

Now the High Court has granted a bankruptcy order which allows the appointment of a trustee who can attempt to sell off her assets up to the amount of the fine.

Margaret Cole, director of enforcement at the FSA, said: “In the last three years we have banned 60 mortgage brokers and levied fines totalling more than £900,000 relating to mortgage fraud.

“Nasir was the first mortgage broker to receive a six-figure penalty for using her position in an authorised firm to commit mortgage fraud.

“This bankruptcy actions our determination to achieve credible deterrence in this area.”

The FSA said that Nasir had made no serious attempt to pay the fine before it started the bankruptcy action.

It found her guilty of making a total of 11 fraudulent applications for mortgages.