MP’s are calling on the owners of HBOS, Lloyds Banking Group, to pay compensation to victims of a fraud carried out by former employees.
The All-Party Parliamentary Group on Fair Business Banking also wants assurances that the bank will review its handling of the fraud and publish its findings; which took place before Lloyds Banking Group took ownership of HBOS.
Six people, including two former HBOS bankers, were found guilty of charges including bribery, fraud and money laundering over activities that cost the bank’s customers and shareholders hundreds of millions of pounds.
Two of those convicted, businessmen Michael Bancroft and David Mills, gave HBOS manager Lynden Scourfield huge bribes so that he would tell his small business customers to use a business turnaround firm, Quayside Corporate Services, which was run by Mills and his wife Alison. Quayside then charged huge fees, bullied business owners and stripped them of their assets.
While HBOS has claimed to have also been a victim of this crime, it is certainly paying the price for failing to prevent fraud being carried out under its nose and in its name.