Hussain is an accountant who ran Nottingham-based Keystone Chartered Accountants, while Barreto traded as Barreto and Partners, an unauthorised financial services firm also based in Nottingham.
The proceedings relate to an offence of conspiracy to commit fraud by false representation, which involves both defendants, and two further offences by Barreto of carrying on regulated activities without authorisation.
In a statement, the FCA stated: “The fraud charges relate to a series of mortgage applications made between January 2015 and March 2018. The alleged conspiracy involved mortgage clients of Mr Barreto.
“If Mr Barreto concluded that they had insufficient income to justify the mortgage they required, he would charge the client a fee which he would then pay in cash to Mr Hussain, to create the false self-employment and employment documentation to support mortgage applications for clients with insufficient income.”
They added: “The total value of the mortgages applied for was circa £3.8 million.”