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eric pebble

Massive Fraud At Building Society: Chelsea Building Soc

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There's a surprise then..... :rolleyes::rolleyes: [not]...

http://news.bbc.co.uk/1/hi/business/8213504.stm

Note how the BBC publishes the "positive" spin put on this story - even on something like this - without even remotely questioning it....

:angry: :angry:

""However, the underlying performance is strong, even though we have had to make provision for impairment and fraud losses.""

God how I LOATHE the Bealzibub Broadcasting Coven..... [bBC]

It said the frauds were mainly due to "the artificial inflation of property values by third party professionals involved in the transactions".

NO!? REALLY??! :D:D

Edited by eric pebble

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http://news.bbc.co.uk/1/hi/business/8213504.stm

It says "

Massive fraud at building society

The frauds have left a huge dent in the society's finances

The Chelsea building society has revealed it has lost £41m as a result of mortgage frauds by some of its buy-to-let borrowers.

The frauds are the main reason for the society staying in the red, with overall losses of £26m in the first half of the year.

Last year, the Chelsea lost £39m, the largest annual loss yet recorded by any building society.

Its finance director has now joined its chief executive in agreeing to resign.

"The society has been through a difficult period and reporting a loss in the first half of the year is disappointing," said Stuart Bernau, the Chelsea's chairman and interim chief executive.

"However, the underlying performance is strong, even though we have had to make provision for impairment and fraud losses."

The Chelsea explained that the fraudulent loans it had discovered were mainly among buy-to-let loans made between 2006 and 2008.

It said the frauds were mainly due to "the artificial inflation of property values by third party professionals involved in the transactions".

Experts have now combed through all the society's mortgages, searching for actual or suspected frauds, and have come to the conclusion it has lost £41m.

The society said it was now trying to recover the money "vigorously"

Oh dear .... the first of many

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Hohoho.

Oh wait I am going to bailout these retards aren't I ?

Then the chief tw@t in charge will be earning £200k a year with £500k bonuses 3 months later.

I really can't take much more.

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We live in a different culture since the decade of imprudence. Since coming back to the UK from several year in the US I have discovered that we are much more a nation of fiddlers. The scams and dishonest practicces run from garage service right up to the largest banks. The level of dishonesty is astounding and what makes it worse is that it is seen as acceptable and perfectly normal as we have seen from our MPs.

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I think I agree about the scams culture. Middle England used to be proud of its probity. Of course, there are always people who line their pockets at every opportunity. T. Dan Brown and the Guiness conspirators always seemed to be exceptions rather than the rule. Has the bonus culture encouraged dishonesty? It has certainly diminished the readiness of people to say that they made a mistake and would put it right.

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They blamed everyone on the radio. Apart from of course themselves.

I looked at the top of my radio and could see nobody.

Wasn't it funny how the stuffed shirt sounded like an ineffective games teacher discussing the 3rd team's poor performance? He doesn't understand what £40M actually is.

They have changed their lending model now they reckon.

That's OK then.

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Dare I suggest it's the influence of the EU?

Bribes and corruption are a way of life for politicians and officials on the continent. Scams, tax avoidance etc are the norm. Well, in my experience it is in France and Spain at least, but Eastern Europe has a reputation for it.

Similarly, British sport has lost its sportsmanship. 25 years ago, the players and managers alike would be ashamed at the diving in football, fake injuries in football and now rugby.

The money doesn't help. It has even affected my favourite sport, cricket. Hardly anyone walks when they're out any more and international players hardly ever play for their counties any more, the clubs that nurtured them and developed them. They should be obligied to play a minimum no of games for their counties or they don't get picked. Tear up the bulls**t central contracts.

"Our players don't do it" used to be the cry, "it's the foreigners." Well now it's endemic at all layers of society.

Edited for typos.

Edited by deflation

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It said the frauds were mainly due to "the artificial inflation of property values by third party professionals involved in the transactions".

Any arrests yet? Thought not. Probably "multicultural" in nature and they have done a runner!

Edited by HostPaul TAFKA Rover2000

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It's funny how when times are good the banks keep schtum and then as soon as they lose money they shout fraud from rooftops.

The fraud they are talking about involves some derivative of the following process;

I find a property worth £100,000

I can get a £75,000 buy to let mortgage

I convince the vendor to sell to me at £75,000

I submit my mortgage application and the property is valued at £100,000

I instruct a solicitor who is competent in arranging such deals to act for me, and another familiar firm to act for the vendor.

Vendor and I use the solicitor's process to complete the purchase, which probably involves a third party to 'bridge' the deposit monies.

The purchase likely goes through at £100,000 and the difference of £25,000 is probably recovered after sale using same solicitors.

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How can they lose £41m. Why dont they just raise everyones elses mortgage rates to compensate? Theyre always more than willing to shaft savers?

Its about time ANYONE who deals with these criminals has their IRRESPONSIBILITY rewarded with 15+% interest rates.

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There's always been some cheating in sports. What about "boot money" when rugby union was supposedly an amateur game? In fact, in rugby hasn't avoiding the rules - and the referee's view - always been considered part of the sport? Not to mention the rowers in the University Boat Race. It would be impossible for many of those who've taken part since... ooh, the beginning... to get a place at Oxford or Cambridge on their intellectual merits. Ringers is the word.

As for commerce... The Consumers' Association was founded in 1957, presumably because people were getting done on a regular basis at the time.

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http://news.bbc.co.uk/1/hi/business/8213504.stm

It says "

Massive fraud at building society

The Chelsea building society has revealed it has lost £41m as a result of mortgage frauds by some of its buy-to-let borrowers.

"..reporting a loss in the first half of the year is disappointing," said Stuart Bernau, the Chelsea's chairman and interim chief executive.

I love that 'disappointing'.

A forty one million pound fraud - 'disappointing'.

The milder the langauge you use, the less damaging the fraud becomes. The more calm and in control you appear.

The Chairman later added that finding a live grenade in his rectum, inserted by disgruntled savers, was 'a tad surprising'.

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Extracts from "The Great Crash: 1929", John Kenneth Galbraith, First Published 1955, Page 152 to 153.

"In many ways the effect of the crash on embezzlement was more significant than on suicide. To the economist embezzlement is the most interesting of crimes. Alone among the various forms of larceny it has a time parameter. Weeks, months, or years may elapse between the commission of the crime and its discovery. (This is a period, incidentally, when the embezzler has his gain and the man who has been embezzled, oddly enough, feels no loss. there is a net increase in psychic wealth.) At any given time there exists an inventory of undiscovered embezzlement in - or more precisely not in - the country's business and banks. This inventory - it should be called the bezzle. It also varies in size with the business cycle."

(http://lachlan.bluehaze.com.au/books/galbraith_1929crash.html)

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We live in a different culture since the decade of imprudence. Since coming back to the UK from several year in the US I have discovered that we are much more a nation of fiddlers. The scams and dishonest practicces run from garage service right up to the largest banks. The level of dishonesty is astounding and what makes it worse is that it is seen as acceptable and perfectly normal as we have seen from our MPs.

Currently working in Oz and the values between people on the whole are far more admirable. To put it simply, the aussies generally treat others as they wish to be treated. Lots of positivity from leaving brand new merrel flipflops on the quay when fishing, only to return 4 hrs later and still there, and leaving doors unlocked and finding my grands worth of lappy still on table. I dont know but on the whole, the fiddling of the uk as a whole is mostly not part of aussie culture. Hope it continues....

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Extracts from "The Great Crash: 1929", John Kenneth Galbraith, First Published 1955, Page 152 to 153.

"In many ways the effect of the crash on embezzlement was more significant than on suicide. To the economist embezzlement is the most interesting of crimes. Alone among the various forms of larceny it has a time parameter. Weeks, months, or years may elapse between the commission of the crime and its discovery. (This is a period, incidentally, when the embezzler has his gain and the man who has been embezzled, oddly enough, feels no loss. there is a net increase in psychic wealth.) At any given time there exists an inventory of undiscovered embezzlement in - or more precisely not in - the country's business and banks. This inventory - it should be called the bezzle. It also varies in size with the business cycle."

(http://lachlan.bluehaze.com.au/books/galbraith_1929crash.html)

My guess is that this time there is still an awful lot of Bezzle that the Embezelled have not cottoned on to yet. Indeed, I will stick my neck out and suggest that is the fundamental position of most of us here on this site.

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We live in a different culture since the decade of imprudence. Since coming back to the UK from several year in the US I have discovered that we are much more a nation of fiddlers. The scams and dishonest practicces run from garage service right up to the largest banks. The level of dishonesty is astounding and what makes it worse is that it is seen as acceptable and perfectly normal as we have seen from our MPs.

I've previously posted that Blair is to blame. As the leader of the country and therefore the authority figure, he reframed"lying" as "spin".

This has infected all levels of society now. Gross distortions, omissions, memory lapses etc. are all now acceptable behaviour.

Nick

Edited by SurgeonGeneral

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My guess is that this time there is still an awful lot of Bezzle that the Embezelled have not cottoned on to yet. Indeed, I will stick my neck out and suggest that is the fundamental position of most of us here on this site.

Yes. CBS have only just cottoned on. They are pretty sure they've been had but don't, as yet, know by whom, or by how much. They are only at the stage of "working hard" to establish any specific instances and find somebody to nick.

They've woken up in a rumpled bed, with a hangover, feeling sticky and sore, and with no memory of the night before.

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Griffin was one of the early arrivals in Thames Walk, and her first months in the half-finished development were pleasant, despite the noise and dust from the building work. But then, in the autumn of 2005, the other flats started to fill up, largely with groups of young men, many of them Africans from Nigeria and Sierra Leone. “The development changed overnight,†Griffin said. “It went from not having many problems with adults to having groups of men always out in the drive, shouting, drinking ... empty bottles everywhere. There were regular parties three or four nights a week. It was very rare to get through a night because there was screaming and shouting, punch-ups in the hallway and cars with blaring music.â€

:lol::lol:

Yup experienced all that in the development over the water, which was no where near as bad as Thamesmead/Woolwich.

What got me is that I almost needed the credit rating and references of the Sultan of Brunei to get my docklads flat, yet they were letting any old riff raff in!

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They blamed everyone on the radio. Apart from of course themselves.

They have changed their lending model now they reckon.

To not at all?

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http://news.bbc.co.uk/1/hi/business/8213504.stm

"The Chelsea Building Society has revealed it has lost £41m ($67m) as a result of mortgage frauds involving some of its buy-to-let loans.

The frauds are the main reason for the society staying in the red, with overall losses of £26m in the first half of the year.

The frauds appear to have involved professionals colluding to inflate the value of buy-to-let properties".....

ERIC!!!!!

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Guest sillybear2
Yes. CBS have only just cottoned on. They are pretty sure they've been had but don't, as yet, know by whom, or by how much. They are only at the stage of "working hard" to establish any specific instances and find somebody to nick.

They can hardly claim ignorance, Portman Building Society started refusing this kind of lending back in December 2005 :-

http://news.ft.com/cms/s/da06d120-6762-11d...00779e2340.html

As for mortgage fraud in general, I blame Mandelson, he kicked off the modern era :-

http://www.telegraph.co.uk/news/uknews/135...-to-resign.html

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