SEX PARTIES GALORE! BANKER’S SEXUAL FANTASIES FULFILLED IN RETURN FOR GETTING $245MIL OF FRAUDULENT LOANS FOR CORRUPT GROUP

A banker who indulged in lavish holidays and sex parties in return for orchestrating £245 million of fraudulent loans with a corrupt group of financiers is facing jail.

Many of the businesses went bankrupt owing millions as a result and some of the owners lost their homes.

Stephen Rowland, of the Crown Prosecution Service fraud division, said: “This had a very real impact on a lot of people, individuals who had worked had to build up companies.

“They found themselves losing their companies and in many cases losing their homes as well as suffering enormous emotional strain and trauma.

“There’s no way this was a victimless crime – as a result of this crime, real people suffered great hardship.”

David Mills and Lynden Scourfield (Photo: Thames Valley Police)

Mills and his wife Alison Mills, 51; Michael Bancroft, 73; Mark Dobson, 55; and John Cartwright, 71, were convicted of various roles in the fraud between 2003 and 2007 after a four-month trial at Southwark Crown Court.

The shocking scale of the fraud was executed by Scourfield forcing the bank’s customers to use a firm of consultants run by Mills and his wife Alison, Quayside Corporate Services.

Once appointed, Mills and Bancroft would produce inflated cash flow forecasts and other figures.

HBOS would then extend far more money than the businesses needed, which Quayside would siphon off not only in fees but in loans that were lent on to other companies controlled by Mills and others – loans that would never be repaid.

If the business had good prospects, Bancroft or Mills would use their relationship with the bank, threatening owners that if they failed to accept their instructions, the bank would pull the plug.

They would then insist on a seat on the board, or a shareholding, or eventually, control of the business.

One company, Clode, was operating within its £2.9 million overdraft in 2002 when a meeting was held to discuss its financial position – its total indebtedness to the bank by 2007 was £20.558 million.

In cash fees alone, according to prosecutors in the trial, £28m went through the accounts of Mills, his wife and their associated companies.

Scourfield, who pleaded guilty last year, was given huge sums of cash, jewellery, luxury hotels, business-class flights and sordid Viagra fuelled sex sessions with prostitutes.

David Mills, centre, and his colleague Michael Bancroft, left, Lynden Scourfield, right (Photo: Thames Valley Police)

Mr Rowland said: “There was a very seedy side to this case and that’s indicative of the kind of mindset and the kind of sleazy elements of these kinds of crimes.”

HBOS, which was rescued by Lloyds Banking Group during the financial crisis, internally estimated the cost of Scourfield’s lending activity as more than £300million in early 2007.

Sources close to the investigation say the total value of the fraud may be closer to £1billion.

The Crown Prosecution Service fraud division said it was one of the most complex cases ever investigated with millions of documents.

Mills was found guilty of conspiracy to corrupt, four counts of fraudulent trading and conspiracy to conceal criminal property.

His wife was convicted of conspiracy to conceal criminal property.

Bancroft, who was convicted of conspiracy to corrupt, three counts of fraudulent trading and one of conspiracy to conceal criminal property, received £1 million in payments.
– http://www.mirror.co.uk/n

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