CPS News Brief

Former HBOS manager and associates convicted of corruption

A senior banker, financial consultant and their associates who conspired to enrich themselves, driving businesses into the ground in the process, have been convicted of corruption, fraudulent trading and money laundering.

The scheme, led by former banker David Mills, 60, and Halifax Bank of Scotland (HBOS) employee Lynden Scourfield, 54, eventually saw the bank incur losses in the region of £250million.

Scourfield headed a department at HBOS which dealt with businesses in financial difficulty. Having been bribed by Mills he required selected customers of the bank to engage the services of Mills and his company Quayside Corporate Services Ltd in order to obtain further lending from HBOS.

Scourfield then advanced large sums of money to the businesses, well past the point that it should have been obvious the debt could never be repaid.

This enabled Mills and his associates – his wife Alison, Michael Bancroft, and Tony Cartwright – to demand very high fees for their ‘consultancy services’. In some cases Mills and Bancroft were able to take over the running of the ailing firms for their own benefit.

Many of the businesses affected by the group’s actions went into liquidation resulting in job losses, financial hardship, marital breakdowns, the loss of their homes and serious ill-health.

The police investigation uncovered evidence of huge rewards provided to Scourfield by Mills to reward his corruption, including cash payments and money transfers amounting to several hundreds of thousands of pounds. Mills also provided lavish hospitality, expensive foreign holidays and sex workers including prostitutes.

Stephen Rowland, Specialist Prosecutor from the CPS Specialist Fraud Division, said:

“Many people have had their lives ruined by the corrupt behaviour of Lynden Scourfield, David Mills and their associates.

“Scourfield worked in a section of his bank which was supposed to help struggling businesses but instead, motivated by greed, he went about stripping them of their assets.

“This was a complicated prosecution due to the volume and complexity of the financial transactions and the large sums of money involved. But in the end thanks to the work of prosecutors and investigators the jury were left in no doubt that the actions of these six defendants were criminal.”

 

Scourfield pleaded guilty to conspiracy to corrupt, conspiracy to launder the proceeds of crime and four counts of fraudulent trading in August 2016. Following a five-month trial at Southwark Crown Court, David Mills, Alison Mills, Bancroft, Cartwright and HBOS employee Mark Dobson, 56, were convicted of various corruption offences (see below).

Jonathan Cohen, 60, was acquitted of fraudulent trading and conspiracy to conceal criminal property.

Those convicted are due to be sentenced on Thursday (February 2).

Notes to Editors 

·         Lynden Scourfield, 54, pleaded guilty to conspiracy to corrupt, conspiracy to launder the proceeds of crime and four counts of fraudulent trading  in August 2016. Reporting restrictions have been in place for the duration of the trial involving David Mills and others.

·         Following a five-month trial at Southwark Crown Court which concluded in January 2017, the following people were convicted:

- Michael Bancroft, [73], convicted of conspiracy to corrupt, three counts of fraudulent trading and one of conspiracy to conceal criminal property.

- David Mills, [60], convicted of conspiracy to corrupt, four counts of fraudulent trading and conspiracy to conceal criminal property.

- Mark Dobson, [56], convicted of conspiracy to corrupt and conspiracy to conceal criminal property.

- Alison Mills, [51], convicted of conspiracy to conceal criminal property.

- Tony Cartwright, [72], convicted of fraudulent trading and conspiracy to conceal criminal property.

· Jonathan Cohen, [60], was acquitted of fraudulent trading and conspiracy to conceal criminal property.

City traders convicted of £141m banking fraud

Two City traders have been convicted of conspiring to defraud a Russian bank of more than £141million in a series of complex frauds.

Georgy Urumov, 37, and Vladimir Gersamia, 33, were convicted of multiple fraud offences following a four-month trial at Southwark Crown Court.

The complex nature of the fraud presented a challenge for investigators but through painstaking analysis of financial transactions, prosecutors were able to outline the individual roles played by the defendants.

The first part of the fraud was carried out in 2011. Urumov joined the Russian-owned company Otkritie Securities Ltd (OSL) and manipulated the firm into paying him approximately $25million (£20million) under the false impression it would be distributed to others also joining the firm. In the event, Urumov held on to the vast majority of the money.

Thereafter, Urumov committed further frauds by trading financial products called Argentinian warrants and fooling his employer into believing that they had been purchased at four times their true cost. He then pocketed the difference and transferred the gains to bank accounts out of the UK.

Urumov used Gersamia, an employee of investment management company Threadneedle Asset Management, to help cover his tracks.

By manipulating the trade in financial products in this way the men stood to gain in excess of a further $150million (£121million).

Money defrauded by the men was then moved between numerous accounts in countries across the world, including the Caribbean, Switzerland and eastern Europe in an effort to cover up its origins.

Alistair Dickson, Specialist Prosecutor in the CPS Specialist Fraud Division, said:

“These men were successful traders, earning very generous salaries and large bonuses. But that was not enough for them.

“Motivated by greed, they went about committing a fraud involving eye-watering sums of money using a variety of sophisticated methods. 

“Due to the international scale of this fraud the prosecution team considered millions of pieces of evidence and made arrangements to call witnesses from across the world in order to present a compelling case to the jury.

“The assistance of both Otkritie Securities Limited and Threadneedle Asset Management in providing evidence to the police was crucial and this complex prosecution could not have gone ahead without their support.”

Urumov’s wife, Yulia Balk, 36, was acquitted of one count of conspiracy to commit money laundering and one of entering into an agreement to facilitate money laundering. 

Alessandro Gherzi, 37, was acquitted of two counts of conspiracy to defraud, two counts of conspiracy to commit fraud by false representation and one count of conspiracy to commit money laundering.

Urumov and Gersamia will be sentenced on Friday (January 27) at 10am.

Ends

Notes to Editors

Charges:

• Georgy Urumov was convicted of two counts of conspiracy to defraud, two counts of conspiracy to commit fraud by false representation and one count of conspiracy to commit money laundering.

• Vladimir Gersamia was convicted of two counts of conspiracy to defraud and one count of conspiracy to commit money laundering.

• Yulia Balk was acquitted of one count of conspiracy to commit money laundering and one of entering into an agreement to facilitate money laundering.

• Alessandro Gherzi was acquitted of two counts of conspiracy to defraud, two counts of conspiracy to commit fraud by false representation and one count of conspiracy to commit money laundering.

Brothers who brought vulnerable people to UK to exploit them jailed

Two brothers who arranged for vulnerable people to travel to the UK before stealing the majority of their wages have each been jailed for six years today (23 January).

Erwin and Krystian Markowski identified targets in their native Poland with the help of ‘spotters’ - offering travel, work and accommodation. The people they targeted were generally jobless or in need of money.

The victims received coach tickets and were then housed in squalid accommodation in Nottingham before being taken to an employment agency in Mansfield. Through the agency they were given warehouse work in Derbyshire.

Travel documents were taken from the people on arrival, who were then helped by the defendants to open bank accounts. Their bank cards were seized by the Markowskis and they were given only around a third of their wages by the brothers, generally £90 of their earnings of approximately £265 a week. The defendants kept the difference for themselves.

By taking control of their finances and communications, and by sometimes threatening violence, the brothers were able to exert total control over the victims.

In total, around 18 victims are thought to have been exploited in this way during 2015 and early 2016.

At Nottingham Crown Court today, the defendants pleaded guilty to charges of conspiracy to arrange travel with a view to exploitation and conspiracy to commit fraud by false representation. They were later sentenced to six years each for the former count and two and a half years for the latter, to run concurrently. A charge of conspiracy to require a person to perform forced labour was left to lie on file.

Janine Smith, Chief Crown Prosecutor of CPS East Midlands, said:

“The Markowskis preyed on vulnerable people in Poland and promised them accommodation and a tempting wage in order to lure them to the UK.

“The reality upon arrival was a life of squalid living conditions and near total control by the defendants.

“Modern slavery is a global issue that often goes unseen, but prosecutors and police are determined to take all possible steps to hold those responsible to account, regardless of borders.

“In this instance, the CPS was able to build a case that left the defendants with no option but to admit their guilt.”

Man receives life sentence for vicious attempted murder

A Derbyshire man who subjected a woman to a vicious three-hour attack, leaving her in intensive care has been sentenced to life in prison. Accomplices who conspired with him to try and stop her giving evidence have also been sentenced for their parts in the conspiracy.

Christopher Magee pleaded guilty to Attempted Murder for the attack on his victim. Martin Clarke, Zackree Williams, Sara Bennett, Michael Holmes, Liam Curtis and Robert Wyatt were all convicted in December 2016 for a series of planned attacks on the victim to try to stop her giving evidence. Find out more about the case here . 

Michelle Mannion, District Crown Prosecutor at CPS East Midlands said:

“Today’s sentence is an important conclusion to this case. In addition to the extreme violence Christopher Magee used towards this victim, we have presented evidence to the court of the danger he poses to women. He has a prolific record of violence and, despite serving sentences for these offences, his attitude and behaviour has not changed. If anything, it has escalated. He pursued his agenda against this victim to the point of obsession - with his intentions towards her and her family becoming increasingly violent as he involved his accomplices in his schemes.

“As well as making the extent of Magee’s offending clear to the court to assist with sentencing, we applied for a Restraining Order restricting Magee from having any direct or indirect contact with the victim and her family. 

“Martin Clarke and the other defendants in this case have followed Magee’s violent agenda without question and without thought for the consequences to those they targeted. The severity of the sentences handed down to them reflects the relentlessness and the lack of remorse in their actions towards the victim.

“Given all the she was subjected to and the risk posed by Magee, the victim has demonstrated a huge amount of courage throughout this process. I hope that today’s sentence and the Restraining Order imposed indefinitely will give her and her family confidence in the Criminal Justice System so they can move forward.”   

Notes to Editors

All defendants were sentenced today at Nottingham Crown Court.

Christopher Magee was given a life sentence with a minimum term of 13.5years.

Martin Clarke was sentenced to a total of ten years, four years for conspiracy to commit grievous bodily harm and six years, consecutively for conspiracy to commit arson being reckless as to whether life was endangered.

Holmes, Bennett, Curtis and Wyatt were jailed for their part in the conspiracy while Williams received a suspended sentence.

Conman jailed for second time over medical qualification lies

A conman who was previously jailed for posing as a doctor has been sent to prison for a second time today (Thursday 12 January) after he admitted lying about his medical qualifications again.

Conrad de Souza, 57, of Fulham, was sentenced to 17 months in prison following a prosecution brought by the CPS Specialist Fraud Division.

De Souza pleaded guilty to six charges of fraud on the first day of his trial at Croydon Crown Court in December 2016. He admitted falsifying his employment history and qualifications in an attempt to secure senior health roles with a variety of public bodies.

Arslan Khan, Specialist Prosecutor from the CPS Specialist Fraud Division, said:

“The prosecution built a case which showed how Conrad de Souza lied time and again in order to attempt to secure a number of senior health roles.

“De Souza carried on telling these lies despite a previous conviction and prison sentence for similar fraudulent behaviour. Faced with the evidence against him, he pleaded guilty.”

This prosecution followed an investigation by the fraud team at NHS Protect.

Ends

Notes to Editors

De Souza admitted six counts of fraud, contrary to the Fraud Act 2006:

·         24 September 2013 - made false representations about his employment and qualifications to the Office for Public Management for the post of Fellow in Health.

·         31 October 2013 - made false representations about his previous convictions, employment and qualifications to Slough Borough Council for the post of Head of Service, Care Commissioning Group.

·         6 February 2014 - made false representations about his employment and qualifications to Windsor, Ascot & Maidenhead Clinical Commissioning Group and to C4H Resourcing for the post of interim Director of Development Commissioning.

·         6-12 June 2014 - made false representations about his convictions, employment and qualifications to Surrey Health Clinical Commissioning Group and to C4H Resourcing for the post of Transformation Programme Manager.

·         27 June 2014 - made false representations about his employment and qualifications to the Office for Public Management for the post of Consultant in Health.

·         12 August 2013-26 May 2014 - made eight representations about his qualifications and employment to the recruitment agency Dearden Interim.

De Souza’s previous conviction related to his employment with Lewisham Primary Care Trust between 2001 and 2010 during which he received more than £329,000 of NHS money in fraudulently obtained earnings. He knew when he applied for the roles it was an essential requirement in these roles to have a degree and clinical specialisms, but held neither.

Businessman convicted of attempting to murder his wife

A businessman has today been found guilty of attempting to murder his wife in a “determined, planned attack”.

Paul Bond had initially pleaded guilty to the less serious offence of causing grievous bodily harm to his wife Dr Marian Bond, with intent to do so. The prosecution did not accept this plea and the attempted murder charge progressed to trial.

A jury at Cambridge Crown Court has today (Monday 9 January) returned a guilty verdict.

Punam Malhan, CPS East of England Senior District Crown Prosecutor, said:

“The prosecution presented evidence to the jury from forensic experts to show that more than one blow was struck with severe force which caused critical, life-threatening injury to Dr Marian Bond.

“This was a determined, planned attack and the prosecution case was that the evidence demonstrated Bond’s intention to kill his wife. Dr Bond’s skull and jaw were severely fractured and she was left in a critical condition fighting for her life. Thanks to the care and skill of the medical profession Dr Bond has been able to be discharged to continue her recovery at home.”

Bond is expected to be sentenced tomorrow (Tuesday 10 January).

Corrupt NHS official jailed for accepting bribes

 

A corrupt NHS official who accepted bribes of £80,000 in exchange for awarding lucrative IT contracts has today been jailed for three-and-a-half years at Guildford Crown Court.

In a case brought by the CPS Specialist Fraud Division, 56-year-old Peter Lewis admitted receiving corrupt payments. His co-accused, Richard Moxon, 40, admitted giving them and was sentenced to 14 months in prison.

Stephen Rowland, Specialist Prosecutor from the CPS Specialist Fraud Division, said:

“Peter Lewis abused his position for his own financial gain. The prosecution evidence showed how Lewis approached Moxon for a bribe and had the money paid directly into the same bank account as his salary.

“The clear evidence resulted in both men pleading guilty.”

The prosecution followed an investigation by Surrey Police into the activities of Lewis, who was employed by the Royal Surrey County Hospital NHS Foundation Trust as director of infomatics.

Ends

Notes to Editors

· Peter Lewis admitted one count of receiving corrupt payments at Guildford Crown Court on 21 November 2016. He was sentenced to three-and-a-half years in prison.

· Richard Moxon admitted one count of giving corrupt payments at Guildford Crown Court on 8 March 2016. He was sentenced to 14 months in prison.

Drugs gang jailed after fly-past cocaine drop in Kent

A gang of drug smugglers who successfully plotted to fly cocaine with an estimated street value of over £2.5million into the UK have been jailed today, following a prosecution brought by the CPS International Justice and Organised Crime Division.

Andrew Barrett (16 years), Michael Mealing (12-and-a-half years) and Jonathan Hart (10 years, nine months) were all jailed at the Old Bailey this afternoon.

Mealing and Hart were arrested with more than 32kg of cocaine on 23 June 2016. They collected these drugs from a field near Faversham in Kent where they had been dropped by a light aircraft.

Later the same day Barrett was arrested while driving a white van containing a separate stash of drugs including approximately 18kg of cocaine, 15kg of cannabis and 1kg of MDMA.

The combined wholesale value of the drugs found in the van was over £650,000, but had these drugs reached the streets the estimated value was more than £1.5million.

Adrian Flasher, Specialist Prosecutor from the CPS International Justice and Organised Crime Division, said:

“The prosecution demonstrated how these organised criminals plotted to fly drugs into the country.

“The CPS worked with investigators from an early stage, advising on the strength and admissibility of the evidence and lines of enquiry. Prosecutors and investigators working together have ensured this criminal enterprise was thwarted and justice has been served.”

All three men pleaded guilty to importing cocaine. Barrett also pleaded guilty to possessing drugs with intent to supply and money laundering.

The prosecution followed an investigation by the National Crime Agency.