Barclays takes action over alleged mortgage fraud

Barclays, together with its international private banking arm are reportedly seeking £12 million in damages from mortgage broker Savills Private Finance (SPF), chartered surveyors Stocker and Roberts Partnership and law firm O’Sullivan Law Solicitors in relation to a number of mortgages which were sold between 2006 and 2007.
A hearing was reportedly held on the matter on January 25 and a trial will take place if an agreement cannot be reached. The bank alleges that a former SPF employee used the services of Stocker and Roberts to obtain overstated property valuations, and in two separate incidents obtained personal payments totalling £80,000 after deals were completed.
It is also reported that Barclays is suing solicitors Montague Lambert & Co for alleged negligence in relation to the fraud. Whilst SPF has confirmed that the action is ongoing all the defendants are understood to be denying the allegations.
A spokesperson for SPF said:
"SPF confirms legal proceedings have been issued against it in relation to five mortgages arranged by one of its employees four years ago. SPF can confirm that the employee involved was dismissed in November 2007, when irregularities first came to light, but it can make no further comments with regards to proceedings as these are ongoing."
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