We spent 4 years being defrauded by HBOS employees and associates and a further 10 years trying to expose what the Bank did to our and others’ businesses. For the first three of the ten years it was pretty much the case no one wanted to know and many people, including HBOS executives, were keen to portray my husband Paul and I either as nut cases (what do you mean bankers have committed fraud?) or as whinging business owners who didn’t want to repay their loans. Of course they also repeatedly put us through eviction hearings in their attempts to silence us but that didn’t work out either.

Which is why we have spent years gathering indisputable evidence of the fraud. As a consequence of a collective refusal by bankers and the authorities to believe what we were saying, even when we produced the evidence to support our allegations including in the many Court hearings, we are very aware who knew what and who was complicit in a massive cover up to hide the fraud, a cover up that goes all the way to the top of the Bank.

Nevertheless we did eventually, with the help of many other victims and with the hard work of Thames Valley Police, see bankers and their chums arrested, prosecuted and jailed. That process took over six years from the start of the police investigation. It wouldn’t have taken that long had the Bank been as co-operative as they like to say they were.

Despite the best efforts of many for it not to happen, Lynden Scourfield and Mark Dobson, both senior HBOS bankers, and David Mills, owner of Quayside Corporate Services and his team (including his wife), have gone to jail for a total of 47 years between them. So it is fair to say we and others have been vindicated and finally, albeit kicking and screaming, Lloyds Banking Group did agree to compensate all those defrauded.

It’s now five months since the criminal trial finished and eleven months since Lynden Scourfield (and therefore the Bank) pleaded guilty to various fraudulent scenarios. Despite statements, press releases and comments from the CEO of Lloyds Banking Group and despite a letter to Paul and I from Lord Blackwell saying he hoped that how the Bank would deal with this would restore trust in the Bank, only one person (according to the Bank) has been compensated and a further six (according to the Bank) have received offers.

I have no idea who these people are? No one I have spoken to – I’ve been speaking to victims of HBOS Reading since mid-2007 and the list of names is quite comprehensive – none of them have been compensated.

A representative of the Bank has been quoted in various newspapers saying the Bank are disappointed the compensation process is taking so long because they had a deadline of 30^th June 2017. The Bank say the cause of the delay is because victims want more time to present their information. Or to put it another way, the problem is the victims!!!

Victims I have spoken to are also disappointed. They are disappointed the Bank’s chosen method of resolution is via a ‘review’ scheme that seems to be remarkably similar to the failed IRHP scheme or RBS GRG failed compensation scheme. The person running the Lloyds Banking Group ‘independent’ review is Professor Griggs, who I don’t doubt is an intelligent and honourable man. However, he is also someone who has done consultancy work for Lloyds Banking Group and he has been a director of a company where one of the main shareholders was connected to David Mills of Quayside Corporate Services, who was sent to jail for 15 years for his role in the fraud and corruption.

Then there is the way the review is being run. A member of SME Alliance who has met with Professor Griggs, has told us (and we are grateful for the information):

• Neither the Bank nor Professor Griggs will volunteer any information about the methodology behind the review. Representatives of the Bank have said they cannot comment because Professor Griggs devised the methodology. Professor Griggs has said he cannot give any comment or information because the Bank devised the methodology.
• A victim who chooses to enter the review process can either fill in the questionnaire Professor Griggs has prepared or they can send their information in an alternative format. Once the information has been received, it will be assessed by a panel and they will make a non-negotiable offer in approximately four weeks. Victims will not know who is on the panel and if they don’t find the offer satisfactory, they can of course choose to litigate (as if the majority of the victims can afford to litigate!).
• The Bank will pay reasonable legal costs as part of the review but that is limited to a payment for fees totalling 20 hours. I can’t speak for other victims but having met many of them and researched the circumstances behind their cases, I’m not sure it’s fair or reasonable to suggest any victim can condense 10, 12, 14 years of their lives into a 20 hour explanation that will allow their advisers or their legal representatives to present a fully comprehensive presentation of their case.

I’m not sure if the Bank consider they should make additional payments for forensic accountants. I do think they should cover this cost because, let’s face it, some people may find it difficult to calculate losses going back more than 10 years. Additionally, I wonder how many hours the Bank’s lawyers have spent on each victim’s case? I’m guessing it’s far more than 20 hours per case, which hardly seems equitable. For example, Paul and I are not in the review but Professor Griggs does seem to know a lot about our case and it would take far more than 20 hours to go through the copious correspondence between us and HBOS/LBG/ Dentons/Walker Morris and others over the last 10 years. And I wonder what the hourly rate is for the Bank’s lawyers? I know how much one day of fees for Denton Wilde Sapte (now Dentons) costs because I apparently paid a fortune for a senior solicitor representing the Bank’s Board, to attend 6 of our 22 eviction hearings. Will the Bank pay such exorbitant fees to the victim’s advisers? I think not and I am now aware the Bank are challenging the adviser’s fees.

I wonder what will happen if the Bank, having dragged this whole sorry affair out for so long, decide they won’t pay the costs for the victim’s advisers? In theory either the victims themselves will have to pay (so goodbye to the recent ex-gratia payments) or the advisers will just have to stop working.

Conclusion (of the review). Professor Griggs, who may be a very nice man, is not the obvious choice as an ‘independent reviewer” as he has worked for the Bank and had a connection with David Mills through a Company of which he was an Officer. And let’s not forget any money Mills invested in shares or any shares he received as remuneration, came from tainted money or proceeds of crime.

There is absolutely no transparency regarding the review’s methodology – you cannot know how the Professor or anyone else plans to assess your life. If you do enter the review you will not know who the faceless panel are who assess your compensation but you do know their word is final – there is no appeal, debate or discussion. Take it – or leave it and find mega bucks to take the Bank to Court.

Paul and I are not part of the review but I don’t think we are the two people mentioned in the press last week because those people are going down the litigation route. As I know victims who are going down that route and as we are also not in the review, I think someone in the Bank’s press office was slightly confused when they said only two people weren’t participating in the review. Not least because I know of others who, like us, have agreed with the Bank we do not have to take part in it.

Then there’s the number of victims. I’ve been looking at the details of our investigation, which was by no means comprehensive but I don’t understand where the figure of 67 comes from? I can only assume the list doesn’t include shareholders or creditors. I would have thought HMRC would have complained bitterly about that as they are a multiple creditor – not to mention many local Councils.

The biggest disappointment for me (other than the long drawn out time scales, the lack of transparency and the bizarre pretence victims would find the review process acceptable) is the fact this whole situation has been premised on a lie.

I’m not going to go into detail on why I know this is a fact and a huge problem. However, I would just point out to Lloyds Banking Group that, had they done what Lord Blackwell told Paul and I the Bank would do and if they had swiftly, appropriately and generously compensated the victims (Lord B didn’t use the word generously but I’m throwing it into the mix because I believe that’s what he meant), there would have been no delay in compensation and there would not have been endless media articles about Lloyds Banking Group’s extremely disappointing conduct and lack of integrity.

Sorting out this shameful episode was/is not rocket science. All the victims have advisers or legal representation or can get it (there’s no shortage of lawyers offering to help victims). If the Bank had put forward 11 of their best advisers and given them 6 cases each and if the Bank’s advisers had liaised directly with the victim’s representatives, I’m guessing the whole process would have been over and done within a matter of 6 to 10 weeks. I fail to understand why that option wasn’t considered? Why does it have to be so tortuous?

To be clear Lord Blackwell, Mr Horta-Osorio and Mr Colombas, what the victims want is their lives back or as much as we can get back. That won’t happen until they have compensation and closure. I’m guessing the way things are going, the Bank’s major shareholders would also like to see some closure on HBOS Reading before more damaging information about Lloyds is exposed in the press.

It is possible much of what is happening now is designed to wear victims down so that if and when offers of compensation come, the victims will accept anything because they are just tired of fighting. That and the fact many victims are no longer spring chickens and don’t have the time for another prolonged battle. Worse still – some have cancer or other serious conditions.

Of course I can’t prove that theory (it’s not as easy as proving the fraud) but 10 years of dealing with the senior management of Lloyds Banking Group including Sir Win Bischoff, Eric Daniels, Harry Baines, Philip Grant, Antonio Horta-Osorio, Juan Colombas and, more recently, Lord Blackwell, has not instilled any confidence and even if I would like to believe what Lord Blackwell wrote in his letter, I am now struggling.

Where are we now? I have no idea. I’m not actually sure the Bank’s senior management knows but they probably do and this is all by design. Hopefully we will all know a bit more soon but and in the meantime, 30^th June 2017 has come and gone and I can confirm the victims are far more disappointed than the Bank or its representatives.

Personally I am disappointed Lord Blackwell has either been insincere in his letter to Paul and I or, less likely, those in the Bank dealing with this matter are not inclined to listen to the Chairman.

 

Nikki Turner                                                                                                                10^th July 2017