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Ex-HBOS manager and five others face jail over £245m scam Ex-HBOS manager and five others face jail over £245m scam
(35 minutes later)
A group of six financiers including a former senior HBOS banker face jail after they were convicted on Monday for their roles in a scam involving £245m of fraudulent loans. A group of six financiers including a former senior HBOS banker face jail after beingconvicted on Monday for their roles in a scam involving £245m of fraudulent loans.
Ex-HBOS executive Lynden Scourfield, 54, was bribed by David Mills, 59, with foreign cruises and sex parties, a jury at Southwark crown court found on Monday. Ex-HBOS executive Lynden Scourfield, 54, was bribed by David Mills, 60, with foreign cruises and sex parties, a jury at Southwark crown court found on Monday.
In return, Scourfield, who had previously pleaded guilty to charges relating to his role in the scam last year, agreed to give inappropriate loans to struggling businesses, which allowed Mills and his associates to profit from high consultancy fees.In return, Scourfield, who had previously pleaded guilty to charges relating to his role in the scam last year, agreed to give inappropriate loans to struggling businesses, which allowed Mills and his associates to profit from high consultancy fees.
Many of the businesses went bankrupt as a result and some of the owners lost their homes. Stephen Rowland, of the Crown Prosecution Service fraud division, said: “This had a very real impact on a lot of people, individuals who had worked had to build up companies”.Many of the businesses went bankrupt as a result and some of the owners lost their homes. Stephen Rowland, of the Crown Prosecution Service fraud division, said: “This had a very real impact on a lot of people, individuals who had worked had to build up companies”.
Mills, who faces a long prison term along with Scourfield, was convicted alongside his wife Alison, 51, their associates Michael Bancroft, 73, and Tony Cartwright, 71, for their various roles in running the fraud between 2003 and 2007. Mark Dobson, 55, another HBOS banker who used to work under Scourfield, was also found guilty. Mills, who faces the potential of a long prison term along with Scourfield, was convicted alongside his wife Alison, 51, their associates Michael Bancroft, 73, and Tony Cartwright, 72, for their various roles in running the fraud between 2003 and 2007. Mark Dobson, 56, another HBOS banker who used to work under Scourfield, was also found guilty.
A seventh man, accountant Jonathan Cohen, 57, was acquitted.
Scourfield was in charge of corporate customers experiencing financial difficulties at HBOS’s branch in Reading, Berkshire, until 2007 when he resigned.Scourfield was in charge of corporate customers experiencing financial difficulties at HBOS’s branch in Reading, Berkshire, until 2007 when he resigned.
He received gifts of clothes, jewellery, luxury hotels, business-class flights and expensive meals at an oyster bar and a cheesecake restaurant, the jury heard during a four-month trial.He received gifts of clothes, jewellery, luxury hotels, business-class flights and expensive meals at an oyster bar and a cheesecake restaurant, the jury heard during a four-month trial.
Mills’s wife also played an active role in the scheme, inviting Scourfield and his wife, plus Dobson, to go on trips to Ascot. Meanwhile Mills, Bancroft, Scourfield and their wives holidayed together in Barbados to celebrate Alison Mills’ 40th birthday.Mills’s wife also played an active role in the scheme, inviting Scourfield and his wife, plus Dobson, to go on trips to Ascot. Meanwhile Mills, Bancroft, Scourfield and their wives holidayed together in Barbados to celebrate Alison Mills’ 40th birthday.
One woman who worked at Fantasy – a pornographic magazine company under Scourfield’s portfolio – said she was asked to arrange girls for the “posh twat banker friends”.One woman who worked at Fantasy – a pornographic magazine company under Scourfield’s portfolio – said she was asked to arrange girls for the “posh twat banker friends”.
Rowland said: “There was a very seedy side to this case and that’s indicative of the kind of mindset and the kind of sleazy elements of these kinds of crimes.”Rowland said: “There was a very seedy side to this case and that’s indicative of the kind of mindset and the kind of sleazy elements of these kinds of crimes.”
The case was brought after a six-year investigation by Thames Valley police that in total had 150 officers working on the case sifting through about 500,000 documents in evidence.
Sentencing is scheduled for Thursday.