Regulation  

Jail for HBoS scammers who funded sex parties

Jail for HBoS scammers who funded sex parties

A former HBoS banker who enjoyed sex parties and holidays around the globe while agreeing £245m in loans that could never be repaid is among those found guilty of fraud.

Lynden Scourfield, 54, forced struggling clients to use the services of his friend David Mills, 60, in return for romps with high-class hookers and lavish gifts.

Scourfield liked the escorts to dress in suspenders and kept a drawer full of viagra because he often could not manage to get an erection.

Article continues after advert

He pumped eye-watering sums of cash into the failing businesses as Mills and his associates charged exorbitant fees for “consultancy services” and ran the companies into the ground.

HBoS, once the UK's biggest mortgage lender, suffered a devastating collapse during the 2008 credit crunch - and taxpayers were left to foot the £20.5bn bill.

Scourfield admitted conspiracy to corrupt, money laundering and four counts of fraudulent trading at Southwark Crown Court in August last year and is currently behind bars.

Mills, his wife Alison Mills, 51, fellow consultant Michael Bancroft, 73, and HBoS banker Mark Dobson, 56, were convicted with him of offences including conspiracy to corrupt, fraudulent trading and conspiracy to conceal criminal property after a four-and-a-half month trial.

Accountant John Cartwright, 72, was found guilty of conspiracy to conceal criminal property but Jonathan Cohen, 57, was cleared of involvement in the conspiracy.

Scourfield, a director of impaired assets for HBoS based in Reading, appointed Mills' firm QCS to administer bank loans to companies in financial difficulty.

As an adviser to struggling customers he recommended Mills as an expert to rescue their failing businesses.

In return Scourfield was lavished with cash, expensive gifts, the use of an American Express card, and luxurious foreign travel.

The HBoS loans scandal came to light after a six year investigation dubbed Operation Hornet, by Thames Valley Police.

The probe uncovered evidence of “huge rewards” provided by Mills to Scourfield to “effect his corruption”, between 2003 and 2007.

Brian O'Neill, prosecuting, said: “This took the form of money transfers, birthday parties in Barbados and Thailand, expensive gifts, use of an American Express card for personal spending, unauthorised and inappropriately lavish hospitality, luxurious foreign travel and sexual encounters with high class escorts.”

Mills used much more than just money and gifts to keep Scourfield “sweet”.

Porn star Suzie Best, a favourite of Scourfield, did a girl-on-girl show for a the group, who she described as the “posh twat bankers”.

She recalled giving oral sex to some of the men including Scourfield, who she described as a “Danny DeVito lookalike”.

She said the man with “grey, brushed-back hair” asked her to go to the bedroom with him, but she “didn't think he could get an erection at any stage”.

Scourfield also “suffered from premature ejaculation, liked to undress girls and liked girls to wear suspenders and mini-dresses”, the court heard.

Envelopes filled with wads of cash were delivered Scourfield at a flat in Portman Square.