TWO executives at British bank RBS have been suspended over allegations that they took kickbacks on mortgages awarded for Spanish homes.Alan Dawson and Simon Clark, allegedly creamed off tens of thousands of euros from deals done through “trusted” agents.
The bankers, who were responsible for Spanish mortgage lending, would set up customers with these friendly agents and then arrange loans for those interested in buying.
In return they would demand a quarter share of the commissions paid for each home purchase.
Incredibly many of the alleged practices are suspected to have taken place since the taxpayer-funded bail-out of the bank last year.
And it came while many small businesses and consumers were being denied credit.
In total, the foreign mortgage department under investigation handled hundreds of millions of euros of lending for Britons wishing to buy second homes in Europe, reports the Daily Telegraph.
The bankers – who allegedly own property in Gibraltar and Spain – realised that their role in matching agent and client was potentially lucrative, as a client with a mortgage already in place from a respected high street bank was a very valuable lead.
In the most popular destinations, such as Marbella or Estepona, there was strong competition among agents, keen to pick up commissions of up to five per cent for sales.
If a property sold for one million euros, the agent could earn up to 50,000 euros. A quarter share would be 12,500 euros.
Mr Dawson, a business development manager, was responsible for arranging mortgages for people from the North West wanting mortgages to buy properties in Spain.
He and his colleague Simon Clark, who covers the Midlands, allegedly asked agents whether they would be prepared to pay “commission” for introductions.
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