Former HBOS bankers found guilty of bribery and fraud

Two former HBOS bankers are among six people who have been found guilty of bribery and fraud.

Lynden Scourfield, a former manager with HBOS - which was rescued by Lloyds Banking Group during the financial crisis - pleaded guilty to six counts, including corruption.

Mark Dobson, who was also a manager at HBOS, was convicted on counts including bribery, fraud and money laundering at Southwark Crown Court.

David Mills, Michael Bancroft, Alison Mills, and John Cartwright were also convicted. Another defendant, Jonathan Cohen, was acquitted of charges.

Scourfield accepted bribes from businessmen Bancroft and Mills to get small business customers of HBOS to use consultancy firm Quayside Corporate Services. Quayside, a turnaround consultancy offering business experience and expertise to small businesses, is run by Mills and his wife Alison.

The bribes included sex parties, exotic foreign holidays, cash in brown envelopes and other favours between 2003 and 2007.

Prosecutors said £28m in cash fees went through the accounts of Mills, his wife and their associated companies.

"What Scourfield gave Mills in addition to fees was the opportunity to take control of the various businesses and, in some cases, to acquire ownership of them. Mills and his associates used the bank's customers and the banks's money dishonestly to enrich themselves," prosecutor Brian O'Neill QC told the court.

HBOS said the estimated cost of Scourfield's lending activity in early 2007 was more than £300m.

Since then, there have been further losses, including the impact on business customers. Sources told the BBC the total value of the fraud may be closer to £1bn.