The fate of two businessmen who cheated a bank out

The fate of two businessmen who cheated a bank out of
pnds stlg 400,000 in a trading racket involving boats is still
hanging in the balance.

Judge Alan Hitching allowed John Barber, 55, and Alastair
Banks, 33, to walk free from court but warned them both they may
still go to jail in three months time.

The judge allowed the adjournment in order to see if the
Royal Bank of Scotland is satisfied with ‘proposals’ – from
Barber – for the money to be paid back.

Snaresbrook Crown Court had heard how as the director of
‘Wave Rider’ based in Maldon, Essex, Barber was helped by his
co-accused, Banks, the company credit controller, in targetting
the bank.

Prosecutor Mr Michael Wood described how the pair systematically
set up false import and export deals with boat companies in Europe and
the USA to abuse banking facilities.

Counsel continued: ‘They quite literally created bogus and forged
documentation that was used by them to obtain substantial sums of
money, something like pnds stlg 400,000 from the Royal Bank of
Scotland.

‘
Mr Wood had explained that when the pair obtained the boats –
with loans provided by the bank – they did not sell them to the
customers named in a written agreement.

Instead they sold them to different unwitting buyers so that
the bank was left chasing up money from those named buyers who had
in fact nothing to do with the defendants.

Barber, of Head Street, Goldhanger, and Banks, of Wagtail Drive,
both Maldon, Essex, had each pleaded guilty to a charge of fraudulent
trading between December 1, 1990 and April 4, 1992.

Counsel for Barber, Mr Peter Sapsford, QC, urged the judge not
to send him straight to prison as he is venturing to pay off the debts
to the bank.

Mr Sapsford explained that Barber continues to trade as C.

B.

Boats Ltd.

, based in Station Road, Malden, which employs seven people
including his wife.

Counsel said that his company is intending to ‘exhibit at four
international boat shows’ and documents show there are ‘substantial
orders for this company worth pnds stlg 500,000.

‘
Mr Sapsford added that pnds stlg 88,000 would be available from
the sale of Barber’s home.

Defence counsel for Banks – who is currently unemployed – Mr
Timothy Horgan accepted on his client’s behalf that much now depended
on whether or not proposals put forward by Barber are acceptable to
the Royal Bank of Scotland.

Judge Hitching bound Barber and Banks over ‘to come up for
judgement’ on January 21 next year to see whether there is a
‘possibility of the bank being paid their money back.

‘
The judge said that any proposals put forward for repayment
should be ‘concrete and reliable’ and in three months he would want
to know that the bank is ‘satisfied’ with the situation.

Judge Hitching told both of the defendants: ‘Neither of you
should go away today with any misapprehension that when the matter
is dealt with you will not lose your liberty.

‘
The court had heard that the defendants were able to obtain
boats – mainly Stingray model 501s from the Stingray Boat Company
based in North Carolina, USA – through the use of a credit
agreement they had with the bank.

There was an enormous advantage to the importer such as Wave
Rider because the scheme meant that the bank would effectively buy
the boats – and then collect the money from Wave Rider’s proposed
clients itself.

Mr Wood had said that the Royal Bank of Scotland required
paperwork such as purchase invoices and orders from these customers
so that that cash transfer process could go through.

But the defendants forged masses of paperwork from purported
customers such as Norfolk based Gorleston Marine Ltd; The Boating
Centre, of Dudley Street, West Bromwich; and Coleraine Yacht
Supplies, based in Eire.

When those reputable firms were pressed for money by the bank,
they wrote back stating that they had never dealt with Wave Rider
and knew nothing about the transactions.

By April last year the pair were investigated by police and
subsequently arrested.

Both men are of previous good character.

ends