A review into allegations that Lloyds Banking Group attempted to conceal a £1 billion fraud connected to its HBOS division is nearing completion nearly a decade after it was launched. Dame Linda Dobbs, the retired High Court judge leading the investigation, announced last week that she had received the final witness evidence, marking a significant milestone in the inquiry. However, she warned that several steps, including a detailed analysis, remain before the review can be concluded.

The investigation was commissioned in April 2017 following a fraud linked to the Reading branch of HBOS, which Lloyds acquired during the 2009 financial crisis. Bankers and business consultants exploited aggressive lending policies to defraud the lender, with banker Lynden Scourfield implicated in orchestrating arrangements where customers were coerced into appointing and paying third-party consultants to maintain bank support. The fallout devastated scores of small and medium-sized businesses, impacting hundreds more.

In February 2017, six individuals were sentenced to prison for their roles in the scam, with Judge Martin Beddoe describing the victims as “cheated, defeated and penniless.” The fraud came to light during or shortly after the merger, but victims have alleged that Lloyds sought to cover up the misconduct. They claim the bank foreclosed on affected companies and failed to fully cooperate with police investigations.

The slow pace of the review has drawn widespread criticism from various quarters. Among those expressing frustration are Lord Tyrie, former chairman of the Treasury committee; Conservative Party chairman Kevin Hollinrake; the Banking, Finance and Industries Union, which represents Lloyds staff; and Anthony Stansfeld, former police and crime commissioner for Thames Valley, where the fraud was investigated. The government has echoed concerns, stating it shares public frustration over the extended timeline.

In her first update in a year, Dame Linda acknowledged the prolonged duration but emphasized the importance of a thorough report. “I remain acutely aware of the importance of completing this work as soon as possible,” she said, stressing that the final findings must comprehensively address the issues at hand.

Hollinrake criticized the delay as “crazy,” noting that victims continue to wait for answers and that the latest update indicates the review’s conclusion remains distant. In July, he called on the Treasury committee to intervene to secure the publication of the full review.

Lloyds Banking Group has committed to publishing the findings of the review but has not clarified whether it will release the full report. The bank stated that the pace and progress of the investigation are controlled by the review team and pledged to continue providing full cooperation to help bring the inquiry to a close.