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HBOS fraud victims set to accept redress from Lloyds

HBOS plc 480The influential Treasury committee is expected to release figures imminently relating to redress claims made to Lloyds Banking Group for fraud at the HBOS Reading branch, as it is reported more than 50 of the 70 victims have accepted compensation offers.

In February last year a group of financiers, including two former HBOS employees, were jailed for almost 50 years after being convicted of corruption, fraudulent trading and money laundering.

The group orchestrated a scam that saw HBOS lose approximately £250m.

The Financial Times says Lloyds has been criticised for slow progress in making redress payments. It is understood the lender initially set aside £100m to compensate fraud victims but some estimates put total losses at £1bn.

The FT says several of the biggest claimants are understood to be among those with claims outstanding.

Treasury committee chair Nicky Morgan has written to the academic appointed by Lloyds last year to oversee the redress process, Russel Griggs.

The FT says Griggs is expected to say Lloyds has offered compensation to 90 per cent of the 70 businesses that entered its redress process and that 80 per cent of its offers have been accepted.

The FT says Lloyds did not comment on any communication between Griggs and the committee.

In May, the National Crime Agency said it had started fresh investigations into allegations of fraud at the former HBOS impaired assets division.

The NCA is conducting a pre-investigative evidential review of allegations that fell outside a Thames Valley Police investigation into allegations of fraud by former employees of this division of HBOS.

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