Almost 20 years after the infamous bank scam, HBOS victims are set to be offered £3million in compensation
Victims of Britain’s most notorious bank fraud are being offered a £3million settlement package.
Between 2003 and 2007, 200 small business owners lost vast sums of money when their businesses were targeted by rogue advisers and bankers at HBOS’ Reading branch.
Lloyds, which rescued HBOS from the financial crisis in 2009, has been promising victims compensation for several years.
Guilty: Former HBOS bankers Michael Bancroft, David Mills and Lyndon Scorfield (pictured) have been jailed after 200 small business owners lost huge sums of money
But even after almost two decades, many people still suffer from the many entangled efforts.
To put an end to the scam, Lloyd’s is now paying a lump sum of £3m each to customers deemed victims.
In January 2017, six people, including two former HBOS employees, were sentenced to up to 12 years in prison for their role in the scam.
He collapsed small businesses, milked them for consultant fees, and used the money to take luxury vacations, pay for sex parties with escorts like Suzy Best, buy expensive watches, and even fund a yacht called the Powder Monkey.
One of the accusers, HBOS’ Lyndon Scorfield, was described by the judge as motivated by “gross greed.”
Michael Bancroft, Mark Dobson, John Cartwright, David Mills and his wife Alison Mills were also convicted.
Lloyds agreed to appoint Sir David Fossett, a retired High Court judge, to head the panel to address deficiencies in the bank’s original compensation plan.
The Fawcett Panel has been reviewing cases again since 2020, but fewer than a dozen of the nearly 200 have been resolved.
While some companies claim they are owed more than £3million, it is believed many will take up Lloyd’s offer because they are too old, have illnesses or just want to. that the saga ends.
Paul and Nikki Turner founded the SME Alliance to represent victims of banking abuse after their business was duped by crooks.
Rogue consultants drive small businesses to collapse, using cash to pay for luxury vacations, sex parties with escorts including Suzy Best (pictured).
Andy Keats, who now heads the organization, said he was working with the Fawcett panel to work out a compensation package.
He added: “£3million is a tax-free amount that will go to those who accept it.
“It’s by no means compensation for what happened, but they have the right to take it.”
When asked if the sum was enough for the victims, he said diplomatically: “It is good for those who are demanding this sum.
“And it will be good for those who want to embrace it.”
He said he was surprised by the number of people who said they were willing to accept £3million in talks with the SME Alliance.
“There are people who have said, ‘I’m not that good,’ or ‘that’s not what I do, but if I have it, the rest of my life will be comfortable,'” he said.
He believes it could have taken the Fawcett Panel up to 20 years to come to a conclusion about the elimination of all the cases it reviewed. The settlement package is expected to be announced by the Fawcett Panel later this week.
A Lloyd’s spokesman said: “We deeply regret all customers affected by the crimes committed at HBOS Reading and it has been and remains our intention to provide fair and generous compensation to those affected by the fraud. Has happened.
“We are working with Sir David Fossett and his panel, along with other stakeholders, as the panel considers how assessing customer cases can accelerate progress.”
The spokesman said, “We are confident that the panel’s changes to the process will achieve this goal.”
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