Two directors who worked at sub-prime lender Cattles and its subsidiary Welcome have been fined £600,000 and banned from any activity requiring Financial Services Authority regulation.

The businesses no longer trade.

Cattles finance director James Corr was fined £400,000 and Peter Miller, finance director at Welcome, £200,000.

John Blake, Welcome managing director, was fined of £100,000, but has appealed under FSA regulations.

The FSA said Cattles falsified its 2007 annual report.

It put Welcome’s loan book arrears at £0.9 billion but the true figure was around £1.5bn.

Cattles claimed a 2007 pre-tax profit of £165.2 million, but the FSA said that with correct accounting standards the losses were £96.5m.