Lloyds bank security chief admits £2mn fraud

The Independent/London

Jessica Harper leaves the Southwark Crown Court in London yesterday

A former Lloyds bank boss in charge of online security admitted a £2.4mn fraud yesterday.Jessica Harper took the money over a four-year period while working as head of fraud and security for digital banking at Lloyds Banking Group.Harper stood in the dock at Southwark Crown Court, in London, and admitted a single charge of fraud by abuse of position by submitting false invoices to claim payments totalling £2,463,750. She also admitted a single charge of transferring criminal property, the money, which she had defrauded from her employers.The 50-year-old, from Croydon, south London, carried on the fraud between December 28, 2007, and December 21 last year, the court heard. Antony Swift, prosecuting, did not open the facts of the case.Carol Hawley, defending, said Harper was in the process of selling her £700,000 home to repay some of the stolen cash and was due to exchange contracts yesterday.She will be sentenced at a later date. Hawley applied for bail for Harper but judge Nicholas Loraine-Smith deferred a decision until retiring to consider the matter.Harper was allowed to leave the dock in the courtroom but ordered not to leave the building. Hawley told the court: “She appreciates the seriousness and has made full admissions in interview. She understands perfectly well on the next occasion she will be facing imprisonment of some length.“There are some matters to attend to, not least she is in the process of taking steps to repay significant sums of the money that has been taken and has already cashed in her pension and various other shares.“More significant is her property, on the market - exchange in relation to that property is due to take place today. Completion will be in the period of seven to 10 days.“As a result of that she will be able to offer something in the order of £700,000.” After the judge returned to court to consider bail, he was addressed by prosecutor Swift, who had spoken to police officers in the case. The prosecutor said Harper was on bail during the police investigation. He said the defendant’s mother lived in France and some of the money had been spent on property there. She had been “keen” to make a visit to France.“The Crown’s view is that she has been on bail throughout. She admitted her guilt within 10 minutes of the first interview.” Swift described Harper’s crime as “a very simple fraud” and said she had already repaid £300,000 and was in the process of selling her house for around £700,000. “That will be some £1mn out of £2.5mn that’s gone missing,” he added.Judge Loraine-Smith allowed Harper bail, with conditions. He said: “The Crown tell me she has co-operated and is unlikely to flee. In those circumstances I can grant her bail on condition of residence at her present home address. And there will be a curfew of 9pm to seven in the morning.”Harper has already had to hand in her passport and was also ordered not to apply for any international travel documents. Sue Patten, head of the Crown Prosecution Service, central fraud division, said: “Jessica Harper has been convicted of the type of crime the bank employed her to combat. The evidence in the case was clear and left Harper with little choice but to plead guilty. In doing so, she has admitted to a huge breach of trust against her former employer.“Harper was expected to safeguard the financial interests of the bank. Instead, she submitted false invoices totalling more than £2.4mn over a period of four years. She has also pleaded guilty to laundering the funds of the fraud.”