A building society conducted its own criminal in

A building society conducted its own criminal
investigation into a mortgage fraud months before calling in
the police, a court was told today Thursday.

Judge Robin Laurie described its inquiry as ‘incredible’.

Minutes earlier a jury at Southwark Crown Court had acquitted
Michael Nicholson, the 30-year-old manager of Woolwich Building
Society’s Peckham, SE London, branch of accepting bribes for
approving fraudulent mortgage applications.

But car dealer Richard Rice, 36, who supplied the false
applications and bought seven properties in East London between
October, 1988, and August, 1989, pleaded guilty.

Rice, of Forrest End, Kennett, Newmarket, admitted 11
charges of procuring the execution of valuable securities
by deception.

Judge Laurie said Rice, married with two children, had
admitted dishonestly obtaining seven mortgages worth ‘in the
region of pnds stlg 600,000.

‘
He added: ‘You have also pleaded guilty to four counts
of obtaining personal loans totalling some pnds stlg 27,000.

You obtained those loans in order to prolong the benefit of
the deception by using the money to pay for the arrears
accumulated on the mortgages.

‘Having heard the evidence I have well in mind that these
offences might have been made easy for you with the lack of
control of the Woolwich.

You had a good nose for “sussing out”
those weaknesses.

‘You were interviewed as long ago as May 1990 by the Woolwich who
without contacting the police or the Crown Prosecution Service,
embarked upon a criminal investigation, off their own back – incredible
as it may seem.

‘
Judge Laurie took into account Rice’s ‘frankness and co-operation’
– to the extent that he gave evidence for the prosecution against
Nicholson.

But Nicholson, who denied he was taking pnds stlg 1,000 bribes
from Rice to approve each bogus application, was cleared of any
involvement.

Nicholson, of Shepherds Lane, Dartford, Kent, denied and
was acquitted of 11 similar charges of deception.

Rice was jailed for 30 months.

Proscutor Mr Charles Salmon said mortgages and loans from
the Woolwich were obtained with false details.

The court heard that through an old friend known – not
before the court – Rice was introduced to Mr Nicholson.

‘As a result of that Rice took out seven mortgages in different
names.

The purpose was to rent the premises out,’ said counsel.

The homes purchased throughout the East-End included
addresses in Becton Road, Canning Town, Kempton Road, East Ham, and
Burgess Road, Forest Gate.

It had been alleged that Rice submitted the applications with
false details supplied partly as the result of advice Mr Nicholson
gave him ‘Mr Nicholson knowing the sort of details needed to be
approved.

‘
The scheme ‘went well for a few months’ until the tenants of one
property were investigated by the manager of the West Ham Woolich
branch, said counsel.

May and Rice decided it would be best if May bought back the
seven properties from Rice.

‘But they had to raise some extra money to cover the mortgage
repayments arrears,’ said Mr Salmon.

Rice then obtained bogus small personal loan applications by Rice
for ‘a car’, ‘holiday’ and ‘furniture’ to bring the mortgages up to
date, the court heard.

But Rice failed to keep up the mortgage repayments and when the
whole thing fell apart ‘the scheme was exposed,’ said counsel.

The court heard that the seven properties were sold back to the
Woolich and in all they are still owed pnds stlg 15,000 by Rice in
relation to the personal loans.

ENDS