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Chelsea building society reveals fraud crimes

Published on 21 Aug 2009 under category: legal

The Chelsea building society has revealed multi-million pound losses due to fraud crimes.

It has been announced in its latest figures that the financial firm was hit by a £41 million scam involving buy-to-let mortgages.

This has cleared its profits for the first half of 2009, the building society announced.

It was revealed that these fraud crimes predominantly took the form of loans dating between 2006 and 2008, with the company stating that these had come to light after a review of mortgage books by external consultants.

The firm announced losses for the first half of 2009 of £26 million.

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

Recently, Bradford and Bingley announced potential losses of more than £270 million due to fraud crimes in the first half of 2009.

If you require advice on Corporate Fraud please call us on +44 (0)20 7831 0101 and ask for Dan Hyde.