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Noel Edmonds reaches compensation deal with Lloyds over scam

BusinessNoel Edmonds reaches compensation deal with Lloyds over scam

Noel EdmondsImage copyright
PA Media

Image caption

Noel Edmonds fell victim to a multi-million pound fraud

Lloyds Banking Group has apologised to Noel Edmonds and agreed a compensation deal with him following a fraud case.

The TV star said a scam involving staff at the Reading branch of HBOS, which was subsequently bought by Lloyds, destroyed his business Unique Group.

Lloyds apologised for the “distress” suffered by Mr Edmonds but would not disclose details of the agreement.

But the Daily Mail reported he is thought to have received around £5m from the banking group.

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A statement from Lloyds, on behalf of both parties, said: “Mr Edmonds and Lloyds Banking Group have reached an agreement in their dispute.”

It said the group will continue to assist the ongoing police investigation into matters relating to Unique Group and HBOS Reading.

Corrupt staff from the Reading branch were jailed in 2017 for a £245m loans scam between 2003 and 2007 which destroyed several businesses.

It was revealed they squandered the profits on high-end prostitutes and luxury holidays.

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Clockwise from top left: Michael Bancroft, David Mills, John Cartwright, Mark Dobson and Alison Mills were all jailed for the HBOS scam

Mr Edmonds, 70, was one of the most high profile victims of the scam and took action against the bank, saying in 2018 they will “have to pay up”.

He initially sought a compensation claim of more than £60m.

He previously revealed he considered taking his own life as a result of his financial situation thanks to the scam.

Lloyds rescued HBOS at the height of the financial crisis and the Reading scandal has loomed large over the bank.

The group set aside £100m for victims of the fraud.

An independent inquiry chaired by Dame Linda Dobbs is investigating whether the fraud was properly investigated and reported to authorities by Lloyds following its acquisition of HBOS and whether any individuals sought to cover it up.

The statement from Lloyds added “both parties also agree to place their trust in the independent inquiry”.

The BBC has contacted Mr Edmonds for comment.

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