Lloyds to Pay out Millions over Scam

Lloyds Banking Group has said it expects compensation to reach £100m for victims of a £245m scam at a Halifax Bank of Scotland (HBOS) branch in Reading.

Lloyds, which acquired HBOS in 2009, said it would pay out to those who suffered “economic losses, distress and inconvenience”.

“We are absolutely determined that victims of the crimes committed at HBOS Reading are fairly, swiftly and appropriately compensated,” Lloyds chief executive Antonio Horta-Osorio said.

It comes as the Financial Conduct Authority (FCA) revealed it would be resuming its investigation into corruption at the branch.

The original probe was put on hold in 2013 at the request of Thames Valley Police, who were exploring the possibility of prosecutions.

Six people were jailed earlier this year in connection with the fraud, including two former HBOS managers.

The scam saw bank manager Lynden Scourfield approve inappropriate loans for struggling businesses at the behest of financial consultant David Mills in exchange for designer watches, exotic holidays and sex parties.

Many of the firms involved went bankrupt and some of the owners lost their homes, while Mills charged them huge consultancy fees.

Mills was sentenced to 15 years in jail, while Scourfield received 11 years and 3 months.

In total, the six people convicted were sentenced to 47 years and 9 months.

The FCA said its investigation would focus on “the extent and nature of the knowledge of these matters within HBOS” and its communications with the Financial Services Authority – a precursor to the FCA – after the corruption was first discovered.

 

Credit: Sky News

0