Home > Uncategorized > The Mills HBOS scandal and how it worked

The Mills HBOS scandal and how it worked

I will be writing a piece on the possible ramifications of this vile saga shortly. Needless to say there could be serious negative implications for lenders, consultants and those wishing to borrow.

This is how this vile scam “worked”.

THE HBOS SCAM: HOW IT WORKED
The QCS ‘consultants’ – Mills, his wife Alison, 52, Michael Bancroft, 73, and John Cartwright, 72 – ransacked the businesses’ accounts by charging exorbitant fees and expenses
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The QCS ‘consultants’ – Mills, his wife Alison, 52, Michael Bancroft, 73, and John Cartwright, 72 – ransacked the businesses’ accounts by charging exorbitant fees and expenses
Senior Impaired Asset [IA] manager Lynden Scourfield, 54, exploited ‘systemic and personnel weaknesses’ within HBOS to make millions with crooked businessman David Mills, 60, and his associates.
They targeted 200 small businesses that were struggling to repay HBOS loans between 2003-2007.
The bank’s IA division took control of the failing clients in order to steady the ship and protect their loans, or to recover what funds they could through asset stripping.
Scourfield threatened to stop the flow of cash to companies unless they hired ‘turnaround consultants’ from Mills’ firm Quayside Corporate Services [QCS] for up to £30,000 a month each.
Once they agreed, Scourfield authorised more than £500million of loans to the high-risk clients from his HBOS office in Reading, regardless of their ability to repay.
The QCS ‘consultants’ – Mills, his wife Alison, 52, Michael Bancroft, 73, and John Cartwright, 72 – ransacked the businesses’ accounts by charging exorbitant fees and expenses.
When the firms went into administration, Mills seized what assets were left and transferred them to his sham companies The Sandstone Organisation and Knightingale Investments.
The QCS gang spent the profits on millions or pounds’ worth of property across Europe, birthday bashes in Thailand and Barbados, trips to Ascot, and a yacht.
Scourfield was rewarded with at least £1million by way of luxury holidays, lavish gifts, and orgies with high-class escorts.
His IA colleague Mark Dobson, 56, helped to divert funds from two high-risk clients to Mills’ bogus businesses in return for £30,000 and lavish hospitality.
Accountant Jonathan Cohen, 57, was said to have organised Scourfield and Mills’ tax affairs to conceal the scam while his troubled firm Brett Adams raked in loans from HBOS’s IA division. He was cleared of any involvement by the jury today.

 

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