Lloyds hires retired judge to probe HBoS scandal

Lloyds Banking Group (LBG) said it appointed retired High Court Judge Linda Dobbs as the independent legal expert to consider whether issues relating to the HBOS Reading scandal “were investigated and appropriately reported to authorities at the time by LBG, following its acquisition of HBOS.”

Lloyds said Dobbs had been selected “for her considerable experience of working on fraud cases and track record of chairing enquiries.”

Dobbs’ assessment will cover the period following HBOS’s acquisition by Lloyds in January 2009 through to the conclusion of the criminal trial on January 30, 2017.

The findings of the independent review will be shared with the the UK’s Financial Conduct Authority (FCA).

The FCA has already resumed its own investigation into misconduct within the HBOS Reading Impaired Assets office.

Lloyds also said that following the conclusion of the HBOS Reading fraud trial it has been working to provide “fair, swift and appropriate compensation for the victims of the HBOS Reading fraud.”

Lloyds said it was working with Professor Russel Griggs, the independent reviewer appointed in consultation with the FCA, “to ensure appropriate redress is provided to impacted customers.”

Lloyds announced on April 7 a £100 million provision for an estimated compensation to 64 customers.

“It is LBG and the independent reviewer’s intention to begin making compensation offers from late May onwards,” said Lloyds.

“It is anticipated that by the end of June victims who have confirmed their participation in the review will have received compensation offers.

“The length of time required to assess each customer case will depend upon the individual situation and the amount of time customers require to provide their input.”

The FCA said earlier this month: “Six people were jailed for a total of 47 years and nine months following a six year Thames Valley Police investigation into a complex multi-million pound corruption and fraud case involving HBOS bank employees and private business advisors dating back more than a decade.

“Five people, four men and a woman, were found guilty at Southwark Crown Court of corruption, fraudulent trading and money-laundering offences.

“The fraud resulted in the offenders profiting from hundreds of millions of pounds at the expense of businesses and a high street bank and its customers.”