HBOS Reading Manager Guilty of Corruption and Fraud
Six people, including two former HBOS bankers, have been found guilty of bribery and fraud that cost the bank’s business customers and shareholders hundreds of millions of pounds.
The CPS said the case was one of the largest and most complex the special fraud division had ever prosecuted.
On exchange for bribes Scourfield (an HBOS banker) required the bank’s small business customers to use a firm of consultants, Quayside Corporate Services.
Quayside purported to be turnaround consultants, offering business experience and expertise to help small business customers improve their fortunes.
But far from helping turn businesses around they were milking them for huge fees and using their relationship with the bank to bully business owners and strip them of their assets. In cash fees alone it amounted to £28m.
However the true corrupt relationship was much greater as Scourfield gave them the opportunity to take control of various businesses and in some cases, to acquire ownership of them.
Many individuals suffered great financial loss and considerable personal trauma as a result of the callous disregard to the businesses they managed/acquired.
For a decade Lloyds sought to deny any wrongdoing and even now it has still not acknowledged the full scale of the fraud.