Edmonds sues bank for £73m over failed firm
DEAL Or No Deal star Noel Edmonds is demanding £73million from Lloyds over claims that rogue bankers destroyed his business.
The game show host believes his media company Unique Group was wrecked by convicted fraudster Mark Dobson.
Financier Dobson was jailed with five conspirators earlier this year for deliberately ruining small firms and stealing their assets to fund luxury holidays and sex with prostitutes.
In a letter to Lloyds chief executive Antonio Horta-Osorio, Edmonds’s lawyer said he ‘suffered immense economic loss … at the hands of your bank’.
‘These individuals were fraudsters whose corrupt activities also resulted in losses to my client of tens of millions of pounds, along with his suffering deep distress and public humiliation.’ The scandal happened between 2003 and 2007 at the Reading branch of HBOS, which was bought by Lloyds at the height of the financial crisis.
It saw bankers at a special unit meant to save struggling businesses wreck them for financial gain. The proceeds were spent on a £2million yacht and sessions with porn star turned £250-an-hour escort Suzie Best. Wads of £4,000 in cash were delivered to a London flat to pay for sordid parties and kept in a drawer with Viagra.
The fraud cost the bank £245million and at least 50 small firms were wrecked, landing owners with a bill estimated at £1billion by some sources.
Since the gang was jailed for a total of 47 years in February, Lloyds has set aside £100million to compensate victims and asked small business expert Professor Russel Griggs to decide who is owed what.
Edmonds is understood to be one of 64 customers whose cases are being considered. He said: ‘I confirm my lawyers have sent a detailed claim letter seeking compensation from Lloyds for the losses I suffered as a result of fraud committed against me by one of its managers.
‘I am now trusting Mr HortaOsorio is true to his word and ensures I am “fairly, swiftly and appropriately” compensated. If he is not, I will pursue my claim against Lloyds via the courts.’
Unique collapsed in 2007 after taking out a loan with HBOS secured against assets including shares in its broadcasting business UBC. Edmonds was unable to dispose of this stock without HBOS approval. He claimed he sought permission to sell shares in UBC several times and that the profits would have been enough to repay the loan in full.
But he said these efforts were blocked by Dobson. The letter said HBOS employees had been ‘actively preventing the realisation of the significant value of the shares’ and their strategy was to ‘milk Unique for fees while conspiring to destroy it’.
A Lloyds spokesman said more money will be set aside if necessary to ensure all affected customers get a fair pay-out.
Jonathan Coad of Keystone Law, acting for Edmonds, believes he is entitled to at least £73million. Mr Coad said: ‘If the Lloyds review process does not provide the recompense due … litigation funding is in place to start legal proceedings.’