You are here: Home - News -

HBOS banker gets 11 years behind bars for £250m corruption

by:
  • 03/02/2017
  • 0
A former HBOS senior manager has been jailed for 11 years after he was exposed for receiving bribes in the form of cash, holidays and sex parties in return for referring struggling customers to a corrupt consultant.

Lynden Scourfield, 54, of Greenford, Middlesex, was sentenced to a total of 11 years and three months for conspiracy to corrupt, fraudulent trading and money laundering at Southwark Crown Court on Thursday.  The scam ran businesses into the ground and saw HBOS incur losses of £250m.

Alongside Scourfield, four men and a woman were sentenced for their part in the crime, with the total jail time reaching 47 years and nine months. One man was acquitted and another had pled guilty at an earlier hearing.

David Mills, 60, of Moreton-in-Marsh, Gloucestershire, who headed up the consultancy firm that Scourfield referred businesses in financial difficulties to, was jailed for a total of 15 years.

Mills’ wife, Alison, 51, received three and a half years, with business associates Michael Bancroft, 73, and John Cartwright, 72, got 10 years and three and half years, respectively. Mark Dobson who also worked at HBOS and received kickbacks from Mills was imprisoned for four and a half years.

The group were convicted earlier this week for the scam which started when Mills bribed Scourfield to direct HBOS customers to his consultancy services, which focused on helping struggling businesses out of liquidation, in return for hundreds of thousands of pounds, holidays to Thailand and Barbados and parties involving prostitutes.

The business customers, already in financial turmoil, were advanced large sums of cash which they could not afford to repay, while Mills and his associated received significant fees for their services.

Many of the businesses advised by Mills and loaned money by Scourfield went into liquidation resulting in job losses, financial hardship, marital breakdowns, the loss of owners homes and serious ill-health from among victims.

Senior investigating officer, detective superintendent Nick John, with Thames Valley Police said the case had been the “longest and most complex” in the history of the division.

“The sentencing reflects the severity of the crimes and the misery they inflicted on their victims. Their victims were people who were trying to contribute to the economy, creating jobs and offering goods and services. They were normal people running small to medium sized businesses who needed support and instead had their livelihoods, and in many cases, their lives destroyed by the greed of these parasites,” he said.

“Instead of offering advice and support these consultants including David Mills and Michael Bancroft would then take millions out of these companies by various means to fund lavish lifestyles.

“I am pleased for the victims, and there are many affected by the criminal behaviour of this gang, that they have seen these people finally get justice and I hope that this will help them move on after waiting such a long time.”

Lloyds Banking Group has been approached for comment.

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
Miguel Sard Santander's mortgage MD
Santander ups age limit on interest-only mortgages

Santander plans to increase the maximum interest-only (IO) mortgage lending age from 65 to 70 from Tuesday next week.

Close