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Lloyds bank manager jailed for fraud

A Lloyds TSB bank manager who defrauded clients out of more than £300,000 has been jailed for four years.

Jason Benham, 37, who worked at the Lloyds TSB branch in Mildenhall, Suffolk, was sentenced at Ipswich Crown Court after admitting a series of charges of fraud and obtaining money by deception charges.

At the trial, prosecutor Rosalind Jones told the court that transactions were so complex investigators had not been able to calculate the exact total missing. It was estimated it could have been as high as £700,000.

She said Benham had committed new frauds to cover up previous ones. He had persuaded one couple to take out a series of new loans to cover previous ones. With each new loan, he took between £6,000 and £10,000 for himself.

The scam unravelled when a customer complained his endowment payout had not been used to reduce his debt with the bank.

Judge John Devaux said Benham had “groomed” customers who used him as their sole point of contact with the bank and he abused this trust.


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There are 7 comments at the moment, we would love to hear your opinion too.

  1. …and the FSA’s view on Systems and Controls at Lloyds Banking Group?….

  2. Couldn’t agree more. Why did it go undetected internally for so long…..!

  3. no wonder nobody trusts banks or advisers, fraud, commission bias embezzlment. I quit, i have had enough, i’m out. Getting out of this industry and going to live on a farm or somthing, sick to my back teeth with you all

  4. Well I wonder what the regulator will do about this? I am sure that when he gets out he will offered a job on the board of the FSA.

  5. He was offered a job at the FSA as his sentence. He chose prison.

  6. I have given this industry nearly 40 years of my life 15 as an IFA. I completely agree with “mock spannings” if I could get out I would as all at the top lack any integrity or moral standing. Exams training fines forms burocracy and bullying do not give you that.

  7. Peter Davies @ Create Wealth 19th April 2010 at 11:56 am

    This is more bad publicity for Lloyds TSB. As other readers have pointed out it does make you ask the question why the bank cant calculate the exact sum that has gone missing. Incidents of bank staff defrauding customers has gone on in the past and will no doubt happen again in the future; however, the public need to be assured that the bank’s internal controls are robust enough to identify them at an early stage. I wonder over what period they were over?

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