24 January 2008
Payout to building society in fraud suit
Cheshire Building Society will receive £10 million as a result of a commercial property fraud incident from three years ago.
A summary judgment in deceit was handed down and Dunlop Haywards was ordered to make an interim payment to the society.
In 2005, Dunlop Haywards told the society that an industrial building it was lending against was worth £16 million, which led to Cheshire to give an £11.5 million loan to Goldgrade Properties.
However, Goldgrade defaulted on the loan and it was then revealed that the property was actually worth only £1.5 million.
Ian McGarry, who was Dunlop Haywards' head of valuation at the time, is also currently being sued by Erinaceous, which owns Dunlop Haywards.
Karen McCormick, chief executive of Cheshire, commented: "We are very pleased to have such a clear outcome in our claim. This is good news for the society."
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Wednesday 14th March 2007