Convicted criminals David Mills, Michael Bancroft, Alison Mills, Anthony Cartwright and entities associated with them, particularly Sandstone Organisation Ltd and Richard Paffard Consultancy. For simplicity, we refer to David Mills, the other convicted criminals outside of the Bank and companies associated with them as ‘Associates’ of QCS.
Where the word ‘Customer’ or ‘you’ appears, it refers to an eligible individual customer (directors or de facto directors or persons sufficiently actively involved in running the business or shareholders of corporate customers affected by the IAR Fraud).
This refers to Direct and Consequential losses. As summarised in Sir Ross Cranston’s report, ‘The Cranston Review’ of December 2019 (chapter 12), these are the losses which a court might award, for example, in respect of financial loss caused to a business and its shareholders through the fraud of a third person, or financial loss caused to others associated with a business as a result of the fraud, such as loss of income or earning ability through damage to his or her reputation. A full explanation of what we mean by D & C losses are for the purposes of the Re-Review can be found in the section of the website called ‘Quantifying D & C losses’, starting at the ‘Introduction’ page.
Where the acronym ‘IAR’ appears it refers to HBOS Impaired Assets London and South East unit based from offices in Reading and Bishopsgate, London.
This means the fraudulent activity perpetrated through the HBOS Impaired Assets London and South East unit based from offices in Reading and Bishopsgate, London (the ‘IAR’) by Lynden Scourfield or Mark Dobson and/or the company called Quayside Corporate Services Limited (‘QCS’), and/or any of its Associates.
This includes HBOS and Lloyds Banking Group and its subsidiaries depending on the context in which the term appears.
The trial which resulted in the convictions in 2017 of two HBOS bankers Lynden Scourfield and Mark Dobson and four people associated with QCS including David Mills.
The Company or group of Companies or sole trader or partnership that was the corporate customer of the Bank and was referred to the IAR.
Shareholders or partners (depending on the type of entity) in the Company are referred to for simplicity as Shareholders.
Directors, or de facto directors, or others sufficiently involved in managing the Company admitted to the Customer Review.
A hypothetical bank that would have taken honest, proper and reasonable actions with respect to the Customer in the hypothetical ‘Non-Fraudulent Scenario’. This key term is referred to and explained in Our Assessment Methodology.
Simple interest at a rate of 8% a year on the loss suffered up to the date of the assessment. This key term is referred to and explained in Our Assessment Methodology.
What actually happened to the Company and its Directors/Managers and Shareholders. This key term is referred to and explained in Our Assessment Methodology.
In accordance with Sir Ross Cranston’s recommendations we will issue a MTD setting out our provisional conclusions and, if the Customer is concluded to be a victim, the amount of the provisional award for D & C losses. The Customer and the Bank can each challenge the MTD and we will take these responses into account when issuing a Final Decision, which will be binding on the Customer and the Bank. The process is described more fully in the Scope and Methodology Statement here and the way in which we approach challenges to a here.
Where the term ‘Non-Fraudulent Scenario’ is used, it refers to a hypothetical scenario, representing what would, or could, realistically have happened to the Company and the Directors/Managers and Shareholders if the IAR Fraud had never happened. This key term is referred to and explained in Our Assessment Methodology. It is also sometimes referred to as the Counterfactual Scenario, and they mean the same thing.
As explained in our Scope and Methodology Statement the first essential condition for us to make an award for D & C losses is that we must be able to conclude you were a victim of the IAR Fraud. The definition of ‘Victim’ for these purposes is here.