UK Plea for Help: How the Bank of Scotland obtained a fraudulent 2nd charge on our family home (and scores like us)

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EDITOR’S NOTE: This is the first in a series of articles that will be published concerning illegal bank activities in the United Kingdom. It would appear that the Judges are just as confused, if not more so, than they are here in the United States. I have interviewed a number of people over the last few months in several different countries, with similar results: judges have turned a deaf ear to the rule of law and are ruling out of their hip pocket, in some cases the result of corruption.

The interesting part of this is that these events are occurring in parallel to U.S. events but, for a change, the borrowers here are ahead of the curve compared to homeowners who can or should contest the liens or foreclosures of their properties in the EU or the UK specifically. Of perhaps even more interest is the frequency with which the loan schemes are tied to other scams. I know of several cases here, like in the Merendon Mining scam (now in bankruptcy) and First Magnus as loan originator, where the origination of the loan was tied to the illegal and deceptive sale of securities or “investment opportunities” in many cases depriving people of the only asset they had.

The article below is a sample of such a case. Attorneys in the UK and other countries are very reluctant to enter the fray for fear that the power of big banking and big business may be used against them personally. I hope these articles are circulated in Europe — I know some of them are —- and that attorneys there realize what U.S. attorneys have come to realize, that there are high profits to be earned in getting involved in forcing the judiciary to apply the rule of law rather than the power of politics.

How the Bank of Scotland obtained a fraudulent 2nd charge on our family home (and scores like us)
In Spring 2001, we were approached by an accountant, Shin Gangar, to contact one Fraser Mackay, the branch director of HBOS in Manchester, who he said wanted to speak to me. He enticed us to enter into a ‘safe as houses’ scheme by raising money to ‘invest’ by borrowing from the bank against our home.
Mackay offered many incentives to get us to go ahead. He said he was investing in the scheme himself, and would be “leaving the bank soon in order to work on it full time”. We understood the scheme had the bank’s full backing. The incentives Mackay offered included halving the ‘arrangement fee’ and commission if I introduced other family members to the scheme. Mackay and Gangar said it was a Bond Underwriting scheme, and that our money would be held safely to our order. Eventually, Mackay agreed with Gangar that the latter would provide a Letter of Undertaking (LOU) saying our loan proceeds would be held by Dobb White to the BANK’S Order. We never saw the loan advance, nor a single bank statement showing if or where the funds were received.
My husband had protested about going ahead, but Mackay managed to persuade us by saying the bank would accept an LOU from Dobb White instead of the 2nd charge on our property, offering that the 2nd charge instead “be held in escrow” and only executed if Dobb White repaid the money to ourselves instead of to the Bank. Thus, a delinquent “Term loan 10 year business facility” was drawn up by Mackay, with many discrepancies and a departure from the “Outline terms & condition”, unnoticed by us at the time.
The bank encouraged us to borrow the maximum allowable and to use our own solicitors and surveyor / valuer “to save costs”. They then went to our solicitors behind our back, and got their contentious agreement to also act for the Bank as well as ourselves, and to forward the charges on to us – unbeknown to us at the time. As a result, the solicitors gave us no advice or warning on the delinquent Term Loan contract that the Bank had drawn up. The solicitors obtained our signature on the alleged ‘escrow-held Deeds’ which they said “would be held safely and not executed” and we signed both the Term Loan contract and the escrow deeds document on 20 July 2001. Just before the fraudulent process was completed, Angela Brogan from the bank’s Underwriting department asked us to “provide our written authorisation” to allow the Bank to send the loan proceeds to a certain account at Butterfield Bank in Guernsey – which they had pre-agreed with Shin Gangar, the accountant. We trusted them as responsible fiduciaries, and so signed the ‘authorisation’ they had asked for.
On 30 July 2001, when we were out of the country, the Bank and colluding solicitors (Matthew & Matthew from Bournemouth) executed the 2nd charge on the Title Deeds of our home, supposedly being held “in escrow and only to be executed if certain conditions were met”. The solicitors had not put this latter point in writing. We did not even know what they had done, and only realised the full implications of this deception many years later. This is how the Bank acted outside the Law, with the solicitors’ complicity. Now the bank is trying to launder this theft through Her Majesty’s Court Service, with case-fixing, bribed judges and rigged ‘hearings’.
The bank had got what they wanted – full control of our property in this arrangement with the accountants, where they had effectively entered ‘a contract within a contract’. We had not understood what had happened, as it had been made to look as if we had a ‘double guarantee’ from both the LOU and the bank’s blessing of the scheme. The scheme began to crumble and collapse, as the authorities had begun freezing the offshore Vavasseur accounts undercover on 18 November 2001 – all concealed from the fund-owners! About a year later, the funds were frozen en masse by the FSA, with everyone else’s money too (approx $240 million), after the October 23 2002 dawn raids, carried out by the Serious Fraud Office when the computer records were seized from Dobb White’s private address giving the road maps of where the funds were parked (in the Vavasseur infrastructure of companies). The FSA then gave away our monies by handing them to the American Government (Vavasseur being an American fraud): the Department of Justice!
It turned out that the Bank of Scotland had been lending to scores of people just like ourselves, for the same scheme. It came to light years later that BofS had also been collecting all the money in the same Cotswold Trading account in Guernsey, outside the jurisdiction of the UK. I was shocked to discover how the BofS had concealed from us that the USA Securities Exchange Commission had frozen ALL the Vavasseur offshore accounts, including Cotswold Trading at Butterfield Bank, Guernsey, on 18 November 2001, undercover! The US “Trustee” had hidden those records under court seal for over six years, to hide the evidence from all of us. This shows that the ‘Authorities’ had allowed the fraud to continue running, instead of warning us. Mackay even “invested” some of his own funds on 16 March 2002, to entice more people to enter the scheme, as it carried on running and expanding and opening new entities and accounts as the previous ones were frozen: He knew it was a fraud because he was a fiduciary who controlled the movement of money.
We then learned in 2009 how the BofS print all their own money: they need collateral bonds to underwrite its issuance! The Bank of Scotland was beyond reasonable doubt the main benefactor of the Vavasseur fraud. They continue to withhold all disclosure and the forensic audit trail. Astonishingly, Mackay had set up FMFS or Fraser Mackay Funding Solutions in 2002, just as he had indicated to me back in Spring 2001.
Robert Wardle, ex-Director of the SFO prevented any prosecution being brought against BofS, and went to work for the BofS main solicitors (DLA Piper) as a consultant in 2008, resigning just before the criminal trial against Dobb White began. DLA Piper joined Baker Tilly on the FSA fraud and false liquidation of Dobb White, which followed, steered by Bof’s CEO, James Crosby. Crosby had abused his position and privilege by collaring the FSA and turning them into no-touch regulators and enablers of fraud and money laundering: without this the creditors’ monies could never have been stolen. James Crosby should be indicted and imprisoned for life. This is the REAL reason for Crosby’s resignation as Deputy Chairman of the FSA in February 2009, and of Hector Sants’ resignation a year later, and now Carol Sergeant’s resignation from Lloyds this month (she was Head of Enforcement at the FSA for the years in question).
Everything that I have said is true. Signed: Elizabeth Watson (27 November, 2010)

8 Responses

  1. Thank you for publishing this – I’m Liz Watson, the woman who wrote the ‘victim statement’ referred to above. The judges are MORE than just “confused” !!
    The whole British Establishment is covering up and protecting the banks – and seemingly will go to ANY lengths to maintain this status quo, even while it’s killing the People of England. The orchestrated asset stripping of the British Plutocracy is no different to the American one, I’m sure, and it is a tad ironic that the “missing” $233 million (of which our money was a part) ended up with the Department of Justice in America! (handed to them by the UK Financial Services Authority, themselves run by dishonest banksters).
    I’ll be sending you some more information soon: watch this space.
    It’ll make your hair stand on end
    kind wishes, Liz Watson

  2. Well Ian people are people but they do the dsrndest things I believe truth will rise and good will prevail this blog and iorhers like it are proof of that. I never thought I would see such a time as this I remain in a kind if shock since 3 yrs ago my world looked very different but as we all now bear witness ignorance is no bliss and the system relies on ignorance and ensures that it remains that way

  3. deb wynn- i am surprised for some reason that you are a Brit. My mom went through the bombing of London (4 years,every night, up to 2200 Junkers dropping their 8 tonnes of ordnance), my dad was in the Ardennes (Battle of the Bulge) in the Maginot Line. If they were alive today to see what they fought for, they would be livid. Churchill was a good man. The US has turned into a nightmare of biblical proportions. Have read your posts starting from #1, keep plugging. All evil shall come to light.

  4. I’m a Brit been here since 99 I am English American
    makes no difference does it. My hero Winston churchill is turning in his grave. Thing is the haves live in south if France ofcourse and they don’t have to speak German thsnks to the English and the Americans but thst makes no difference now either. I heard that war is a rackett and the ultimate excuse to get the economy going . Here’s one by Jake foreclosureblues OMFG. Or in English .., I’m a bit cross

  5. Looks very similar to our All American fraud. At least the Brits seem to be doing something about it. We shall see. I think I can safely assume that this type of thing is going on in Spain, Italy, France (they boycotted their banks), Ireland, etc. I wonder if it is going on in the Asian countries.

  6. I just found this in my e-mail :

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