Three jailed for £18.5m fraud on Swiss bank

Three men have been jailed for a €22 million (£18.5 million) forgery fraud on a Swiss bank.

According to the Serious Fraud Office (SFO) three people have been sentenced for their roles in defrauding EFG Private Bank of Zurich of €22 million.

The fraud was committed through a loan application supported by a false claim that over £76 million was held on deposit at a Guernsey bank as security.

Kevin James Christopher Steele, of Kent, was sentenced to five years and six months’ imprisonment.  He was found guilty in December 2011.

Michael Andrew Shephard, of Lancaster, was given six years and three months’ imprisonment.  He was also disqualified from acting as a company director for 15 years.  He pleaded guilty in September 2011.

Mark Terence Pattinson, Preston, was sentenced on 6 January 2012 to 18 months’ imprisonment.  He pleaded guilty in November 2010 and entered into an agreement to give evidence at the trial of Steele.

In passing the sentences, Judge Wood QC said of Shephard had derived a ‘pathetic satisfaction’ from ‘parading’ himself as a wealthy person. He added that Shephard had ‘lured’ Steele, using his ‘dominating’ personality.

The three conspired to produce letters purporting to be from Bank Julius Baer & Co in Guernsey. 

The false documents were presented to EFG Private Bank to support a loan application on behalf of Michael Shephard.

The documents contained a claim that over £76 million was held in two Guernsey accounts and available for use as security on the €22 million loan.

Kevin Steele was a partner at London law firm Mishcon de Reya.  Michael Shephard was one of his clients. The SFO said Mark Pattinson was an associate of Shephard engaged for the purpose of the fraud.

Charges were brought against the trio in June 2009.

Shephard and Pattinson pleaded guilty ahead of trial, which opened on 7 November 2009, to conspiring to use false instruments.

Steele denied the charges against him but was convicted of the same offences on 5 December 2011.

Additionally he was found guilty of a secondary fraud in that he exposed Mishcon de Reya to risk of loss.