Just been reading about the HBOS/Quayside/Mills/Bancroft case.
"Once appointed as turnaround consultants, Mills and Bancroft would put forward inflated cash flow forecasts and other figures.
HBOS would then extend far more money than the businesses needed, which Quayside would siphon off not only in fees but in loans that were lent on to other companies controlled by Mills and others - loans that would never be repaid.
If the business had good prospects, Bancroft or Mills would use their relationship with the bank, threatening owners that if they failed to accept their instructions, the bank would pull the plug.
They would then insist on a seat on the board, or a shareholding, or eventually, control of the business.
"Scourfield paid absolutely no regard to his overriding duty as an employee of the bank to protect its financial interests. Neither was Scourfield, nor Mills nor Bancroft, troubled by the proper interests of the directors, shareholders and creditors of the various companies," Mr O'Neill said.
"Many individuals suffered great financial loss and considerable personal trauma as a result of their callous disregard for the businesses they had established, owned or managed."
