HBOS Reading Fraud

In January 2017, Lyndon Scourfield and Mark Dobson, both directors in HBOS’ Impaired Assets Division in Reading, together with (amongst others) David Mills, Michael Bancroft and Tony Cartwright of Quayside Corporate Services, were jailed for their part in the now infamous HBOS Reading fraud.

The HBOS Reading fraud is, unquestionably, one of the largest and most disgraceful banking scandals in UK history.

Over a period of many years, Lyndon Scourfield and his fellow co-conspirators defrauded and destroyed countless viable, but vulnerable, business customers who were supposed to be under their care.

The fraud took many forms, some crude, some subtle, but all motivated by greed.

One classic hallmark was the imposition of Quayside as purported turnaround consultants, but whose real purpose was to bleed companies dry through exorbitant, fictitious, consultancy fees.

Another feature was the deliberate abuse of overdraft facilities to choke companies to death and pick off their assets through captive liquidations or administrations.

Victims would invariably encounter personal abuse and bullying of the most vile and unprofessional kind.

Total losses have been estimated at in excess of £1 billion.

Following the criminal trial, Lloyds Banking Group, which bought HBOS in 2009, set up an “independent” review, overseen by Professor Russel Griggs, which, it said, would provide “fair, swift and appropriate” compensation to victims.

However, the reality had proved very different with the Griggs Review facing widespread and severe criticism from victims, practitioners and Parliament alike over its design, operation and desultory offers of compensation.

As a consequence, LBG was forced to set up a separate review, headed by Sir Ross Cranston, a retired High Court Judge, to scrutinise the Griggs Review. Sir Ross Cranston delivered his report on 10 December 2019. Sir Ross subsequently published clarifications to the Recommendations made in the Cranston Report.

Following the conclusions of Sir Ross Cranston’s report, a further independent re-review headed by Sir David Foskett (“The Foskett Re-Review”) was established to reassess the direct and consequential (“D & C”) losses suffered by fraud victims (see the Foskett Re-Review website).

In a separate development, LBG has also been obliged to set up a review to examine the extent to which it may itself be said to have covered up the Reading scandal since the time it acquired HBOS.

This review, which is headed by Dame Linda Dobbs, another retired High Court Judge, is likely to report later in 2022.

To date, DS Law (formerly DaySparkes) has represented over 40 individuals in their fight to secure fair compensation through the Griggs Review and High Court proceedings. In our experience, the fraud was not confined to the limited matters exposed through the criminal trial and did not always involve Quayside.

DS Law are uniquely and expertly qualified to advise on this and similar banking fraud matters.

We are consistently recognised as a leading firm in the Legal 500 for banking litigation

What people say about us

  • [DS Law] banking litigation team is led by the ‘outstanding‘ Michael Sparkes … and is viewed by clients to 'punch above their weight’. It is best known for its director-led, forensic approach. It works across diverse banking dispute work, including claims involving banking fraud, alleged market abuse, securitisation disputes and crypto-currency disputes.
    Legal 500 – 2022
  • Achieving 'excellent results at a low cost', [DS Law]' diverse commercial litigation practice covers professional negligence claims, director and shareholder disputes, market abuse claims and insolvency-related matters. It is also active in cryptocurrency disputes, property litigation, VAT fraud, and cases involving freezing injunctions. The track record of 'impressive' Michael Sparkes includes disputes against major international banks. Director Gopi Binning is 'one to watch'. - Legal 500 2022
    Legal 500 – 2022
  • Michael Sparkes "quickly cuts through difficult legal problems and presents them in a commercial way"
    The Legal 500
  • ‘Michael Sparkes – diligent, considered and tenacious. Will not let go of a case until he gets a good result for his client.... Gopi Binning – super-bright and all over the detail of a complex case.’
    Testimonial from Legal 500 2021 Edition
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  • Michael Sparkes is recommended.
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  • 'Michael Sparkes understand what clients need in conflict situations and never fail to deliver'.
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  • ‘Experts in unraveling complex disputes and offering the necessary guidance throughout their resolution. They offer excellent judgment in all situations and are freely available to contact. They are very ably supported by Gopi Binning who is extremely diligent in all respects and an excellent communicator.'
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  • ‘[DS Law] provide an excellent, first-class, comprehensive service. Attention to every detail and communication on a personal level cannot be bettered. Superb resourcefulness in pursuing and resolving all issues is provided without fail.'
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  • ‘Michael Sparkes has exceptional experience in banking disputes with a track record of positive results for his clients. His tough yet personable approach proves both comforting and successful. Gopi Binning is a rising star in the area, showing legal expertise, client focus and commercial acumen.'
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  • ‘They don’t leave any stones unturned, and have provided results we did not think possible.'
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  • 'The team is expert at complex, financial disputes, but are in a small enough practice to be nimble.'
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  • ‘Michael Sparkes is diligent, considered and tenacious – he will not let go of a case until he gets a good result for his client.'
    Testimonial from Legal 500 2021 Edition
  • “I chose to work with [DS Law] after discussions with various other law firms. The decision was based on their professionalism, their relevant experience and their track record of success. They operated with integrity and passion, they wanted to understand and listen to the complex nature of my potential case. They wanted justice." -Client
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  • “I would highly recommend the firm for its knowledge and expertise. From a lawyer, particularly in relation to banking litigation, a client wants to have the confidence that the lawyer concerned has an in depth understanding of how the banking industry works. I believe that [DS Law] has a very superior knowledge of this sector.”
    Client Testimonial – 2021
  • “As the Director and Founder of my bespoke media agency business I found myself in uncharted waters when a key, multibillion dollar global client breached a number of very complex contracts under various differing countries/ legal jurisdictions. I can say with my hand on heart, I would never have been able to navigate the challenges and stresses that this dispute caused me in both my business and private life over long period of time without the team at [DS Law].”
    Client Testimonial – 2021
  • The 'excellent boutique' litigation practice [DS Law] is a conflict-free law firm that acts for a range of companies, hedge funds and high-net-worth individuals and is 'able to take on interesting and complex financial disputes'.
    The Legal 500
  • [DS Law] is 'a class outfit that comprises super lawyers with great experience'. ... Michael Sparkes recently handled several complex disputes against international banks.
    The Legal 500
  • “Brilliant job! Many thanks for everything. Your hard work, clear advice and patience has truly paid off. ”
    Client
  • [DS Law]' 'offers highly effective partner-led non-conflicted litigation to individuals and corporates'.
    The Legal 500
  • [DS Law] is a specialist litigation boutique firm, where named partners Michael Sparkes ... 'actually handle clients' cases, rather than delegating them to inexperienced trainees and associates'. Sparkes heads the banking litigation department, and has handled a number of complex disputes against major international banks... Gopi Binning is a dispute resolution lawyer within the firm who has extensive experience of advising on freezing orders and other forms of interim relief.
    The Legal 500
  • 'It is a boutique firm that has well-known expertise in bank litigation. The team has expert knowledge of the banking industry and explains the intricacies of the law in a clear and concise manner.'
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  • “I still revel in the Victory you gave me.”
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  • Michael Sparkes is 'very bright and capable'.
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  • "[DS Law] adopt a commercial approach"
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    The Legal 500
  • "An excellent boutique firm" that litigates an increasing number of high-value, complex disputes.
    The Legal 500
  • Sparkes ..is 'really switched on when it comes to financial disputes and offer an admirable pragmatic, no-nonsense approach to claims'.
    The Legal 500
  • 'Seasoned litigators in the financial sector, who bring to bear their considerable experience, attention to detail and client care, and hire the best specialist barristers known to them, when and as required.'
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