Bank of Scotland fights rate swap fraud claim

Bank of Scotland said yesterday that it will fight allegations it defrauded a property group out of millions of pounds during the financial crash.

BoS says the claim is 'without merit'. Picture: Julie Howden

A court claim filed last month states the owner of Ventra Investments Ltd (VIL), Viswajit Palasuntheram, was told by his BoS relationship manager to cash in his interest rate swaps as there was “significant value” in them.

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The claim form alleges the value representations were “false” and “made fraudulently”.

Instead of making money for VIL, the new swaps netted BoS more than £2 million it is alleged. The property group was unavailable to comment yesterday

A spokesperson for Lloyds Banking Group, BoS’s parent company, said: “As the matter is subject to ongoing legal proceedings it would be inappropriate to comment in detail, except to state that we believe the claim to be without merit and it will be contested vigorously.”