Bank settles with specialist team to tackle Covid loan fraudsters: Barclays joins litigation firm Manolete Partners to track down coronavirus scammers
Barclays has roped in London-listed litigation agency Manolete Partners to track down Covid fraudsters.
The Mail on Sunday revealed earlier this year how the bank had signed up fraudsters to recover millions of pounds in taxpayer-backed loans from suspected criminals.
The Mail has now learned that Barclays has chosen Manolete Partners, listed on London’s junior Stock Market Aim, to pursue the fraudsters.
Probe: Barclays made 345,006 loans worth £10.8bn to small businesses during the pandemic under the government’s Bounce Back Loan Scheme
The partnership could generate hundreds of thousands of pounds in revenue for the company, which specializes in financing complex insolvency cases.
Barclays made 345,006 loans worth £10.8 billion to small businesses during the pandemic under the government’s Bounce Back Loan Scheme.
Thousands of the loans may have been taken over by fraudsters, although the original estimate of £1bn has been changed to £259m.
Barclays, in conjunction with the Business Department and Manolete, has identified approximately 100 Bounce Back borrowers suspected of fraud.
Forced liquidation proceedings have been initiated against most of these companies.
Whatever amounts Manolete gets back, he will keep half, and the rest goes to the treasury.