It is rare that the lid can be lifted on the more murky aspects of the property industry. But from time to time a court case allows a light to be shone down on crooked deals. The case of the Crown v Skingley and Burrett (Analysis) tells a tale of a corrupt executive at Hill Samuel (now owned by Lloyds) pocketing cash in return for providing soft loans to a residential developer.
Cases like this rarely reach the courts. Why? Because most banks close up like a clam at the sound of a whistle being blown. They much prefer to hide their own incompetence rather than expose corrupt members of staff. Waving quietly goodbye to stacks of their own money beats a humiliating appearance in court – even as a prosecution witness.
The Serious Fraud Office is now taken more seriously. It has done a fine job in the above case. The number of successful prosecutions is rising. It and everyone else knows that there are far more shady deals done in property than are ever reported.
Those who in the past have tried to blow whistles give this advice: inform the police first, and let them deal with the deaf-eared victims.
