£45.5 Million Fined to the Bank of Scotland
The Financial Conduct Authority of the United Kingdom announced on Friday, June 21, 2019, that the Bank of Scotland is being issued a £45.5 million fine. This charge is the result of the bank not informing the FCA of fraudulent and suspicious behaviour at the offices in London Borrow, Reading.
High-risk loans were provided to companies across Europe & the UK by the Director of Impaired Assets at this branch from 2003 to 2007. Lynden Scourfield would inform his clients to comply with his co-worker, David Mills. Mr Mills would offer irregular consulting services to his clients for incredibly large fees. Furthermore, they’d expense personal luxuries to companies already running into the ground.
It was revealed by an investigation implemented by the Financial Conduct Authority that Mills &Scourfield both were rewarded with exuberant holidays, costly prostitutes and business credit cards. Furthermore, it’s suspected that they both were selling Illegal Viagra through his Apartment in Reading through the prostitutes coming and going during their orgies. These acts are considered immensely illegal to the FCA and United Kingdom Law Enforcement. It’s the most significant scandal for the Bank of Scotland in their history.
David Mills, Alison Mills, Michael Bancroft and John Cartwright acquired millions of pounds through their illegal consulting fees and illicit activities with prostitutes. The money was used to purchase two Yachts, multiple properties across Europe and a few trips to Barbados. David Mills, the ring leader, has been given a prison sentence of fifteen years, and Scourfield will spend eleven years in prison. Michael Bancroft receives a ten-year sentence, and Cartwright received three and a half years. Alison Mills, the wife of David, has also received a three and a half year prison sentence.
Furthermore, the Financial Conduct Authority has stated publically that these five individuals implicated will never be able to work in the Financial Service Industry again. The Bank of Scotland is receiving a fine for knowing about the fraudulent activity being committed by Mills and Scourfield.
The Executive Director of Enforcement & Oversight at the FCA, Mark Steward, commented by saying: “Bank of Scotland failed to alert the regulator and the police about suspicions of fraud at its Reading branch when those suspicions first became apparent.”
Mr Steward continued with, “BOS’s failures caused delays to the investigations by both the FCA and Thames Valley Police. There is no evidence anyone properly addressed their mind to this matter or its consequences. The result risked substantial prejudice to the interests of justice, delaying scrutiny of the fraud by regulators, the start of criminal proceedings as well as the payment of compensation to customers.”