FCA resumes HBOS investigation after six jailed

The investigation will centre on events surrounding the discovery of misconduct within the Reading-based Impaired Assets team of HBOS, and its communications with the Financial Services Authority after the initial discovery of the misconduct.

This resumes an FCA investigation that was placed on hold in early 2013 at the request of Thames Valley Police pending the outcome of its investigation and any resulting prosecutions.

Six people were jailed for a total of 47 years and nine months following the six year police investigation into a complex multi-million pound corruption and fraud case involving HBOS bank employees and private business advisers dating back more than a decade.

In January, five people were found guilty at Southwark Crown Court of corruption, fraudulent trading and money-laundering offences. One man was acquitted and another man had pleaded guilty at an earlier hearing.

After the hearing, senior investigating officer, Detective Superintendent Nick John, said: “This has been the longest and most complex case in Thames Valley Police’s history.

“The sentencing reflects the severity of the crimes and the misery they inflicted on their victims. Their victims were people who were trying to contribute to the economy, creating jobs and offering goods and services. They were normal people running small to medium sized businesses who needed support and instead had their livelihoods, and in many cases, their lives destroyed by the greed of these parasites.

“Instead of offering advice and support these consultants would then take millions out of these companies by various means to fund lavish lifestyles.

“These consultants would also offer kickbacks and gifts to the bankers as a reward for recommending them and for continuing to lend the bank’s money to these struggling companies.

“I am pleased for the victims, and there are many affected by the criminal beahviour of this gang, that they have seen these people finally get justice and I hope that this will help them move on after waiting such a long time.”