Lloyds security chief charged with conning own bank out of £2.5m

A FORMER security chief at Lloyds Banking Group is to be prosecuted over an alleged £2.5 million fraud.

The false invoices totalling £2,463,750 do not relate to her personal expenses, a source said.

Harper will appear before magistrates next week accused of one count of fraud by abuse of position between 2008 and 2011.

Andrew Penhale, of the Crown Prosecution Service’s central fraud group, said he had authorised Scotland Yard to charge her. He said: “The charge relates to an allegation that between 1 September, 2008, and 21 December, 2011, Jessica Harper dishonestly and with the intention of making a gain for herself, abused her position as an employee of Lloyds Banking Group, in which she was expected to safeguard the financial interests of Lloyds Banking Group, by submitting false invoices to claim payments totalling £2,463,750.88, to which she was not entitled.

“This decision to prosecute was taken in accordance with the Code for Crown Prosecutors. We have determined that there is a realistic prospect of conviction and a prosecution is in the public interest.”

Harper will appear before Westminster Magistrates’ Court next Thursday.

Mr Penhale said: “Jessica Harper now stands charged with a criminal offence and has the right to a fair trial.

“It is extremely important that nothing should be reported which could prejudice this trial.”

A Scotland Yard spokesman confirmed the former security chief had been arrested on 21 December by officers from the force’s fraud squad.

A spokesperson for Lloyds said: “As the court process is ongoing, it would be inappropriate for us to comment.”

Lloyds Banking Group was one of the banks bailed out in October 2008 by then prime minister Gordon Brown, to rescue it from the throes of the financial crisis. Taxpayers now own about 40 per cent of the group.

Earlier this month, experts told MPs on the Treasury select committee that selling off the taxpayer stakes could take years and warned against “sweetheart” deals for Middle East investors.

Shareholders in both Lloyds and Royal Bank of Scotland said it would be a long wait to get back the £66 billion of public money plunged into the banks.

Robert Talbut, investment chief at life and pension firm Royal London and powerful lobby group the Association of British Insurers told the MPs: “We would be unhappy if a single investor was given preferential terms to other shareholders.

“If this was part of a wider sale, this might attract other investors. But a ‘sweetheart’ deal would not be in the best interests of investors and the company.”

Mr Talbut added: “I think it is unlikely that the government will see a profit for the foreseeable future.”