The Financial Conduct Authority has resumed its investigation into the Halifax Bank of Scotland impaired assets team.
It follows the conclusion of a police investigation into activity in the Reading-based division, which ended with six people being jailed for a total of 47 years and nine months.
After a trial at Southwark Crown Court earlier this year, five people were found guilty of corruption, fraudulent trading and money-laundering offences.
In a statement issued today (7 April) the regulator said: “This resumes an FCA investigation that was placed on hold in early 2013 at the request of Thames Valley Police pending the outcome of the Thames Valley police investigation and any resulting prosecutions.
“The FCA’s investigation is focusing on the extent and nature of the knowledge of these matters within HBoS and its communications with the Financial Services Authority after the initial discovery of the misconduct.”
Among those jailed following the investigation was Lynden Scourfield, 54, lead director of HBoS’s impaired-assets division, who was sent to prison for 11 years after agreeing £245m in loans that could never be repaid in order to pay for his lavish lifestyle.
He headed a division at HBoS that dealt with small companies in financial distress and lent eye-watering sums of cash to the failing businesses as his friend David Mills, 60, and his associates charged exorbitant fees for “consultancy services” and ran the companies into the ground.
Mills was also sentenced to 15 years in jail.
HBoS, once the UK's biggest mortgage lender, collapsed during the 2008 credit crunch and taxpayers were left to foot the £20.5bn bill.
damian.fantato@ft.com
