Banking giant Lloyds has been fined £45.5million after one of Britain’s biggest-ever frauds.
The Financial Conduct Authority penalty was over a £245million scam at Halifax Bank of Scotland, which Lloyds rescued a decade ago.
From 2003 to 2007 a team at one of its branches drained money from struggling firms after loading them with crippling consultancy loans and fees.
The cash was used to fund lavish holidays and sex parties.
The FCA said HBOS took two years to raise the alarm after identifying the scam risking risked “substantial prejudice to the interests of justice.”
Six people were jailed for a total 47 years for fraud and corruption in 2017.
Andy Hornby, who became HBOS chief executive in 2016 , was recently named the new boss of Frankie & Benny’s owner The Restaurant Group, where he could rake in nearly £4million in his first year.
António Horta-Osório, chief executive of Lloyds Banking Group, said: “We take today’s enforcement notice very seriously.”
He called the period from 2007 to 2009 “a dark period in HBOS’s history, prior to its acquisition by Lloyds Banking Group.”
And he added: “I want to apologise once again for the very deep distress caused to the customers affected by the HBOS Reading fraud.”
