Jessica Harper, 50, said she was entitled to the cash because she was 'loyal' and worked 'long hours'
Her £60,000 security role at the bank included fighting fraud
The millions of pounds were stolen during the height of the financial crisis when Lloyds received substantial amounts of tax payers money

By Emma Clark

PUBLISHED: 13:52, 21 September 2012
UPDATED: 16:33, 21 September 2012


Jessica Harper, 50, the former Head of Security of Lloyds Bank arriving at Southwark Crown Court today after pleading guilty to fraud

A former head of online security at Lloyds Banking Group has been jailed for five years after defrauding the company of almost £2.5million because she ‘deserved’ it.

Jessica Harper, 50, abused her position to carry out exactly the type of crime she was paid £60,000 a year to combat.

She tricked bosses by submitting 93 false and doctored invoices to pay herself £2,463,750 during the height of the financial crisis, when Lloyds received substantial amounts of taxpayers’ money.

Southwark Crown Court heard that she admitted her crimes to police, telling them she deserved the money for working such long hours, getting up at 5.30am and getting home at around 8pm for a salary of between £60,000 and £70,000.

'I saw the opportunity and thought ‘given the hours I work I deserve it’,' she told officers.

Harper added that she was also entitled to the cash for her 'loyalty' to the firm when she could earn four times as much elsewhere, but denied personally benefiting from the fraud.

The money was handed out to friends and her three brothers to allow them to buy houses.

Harper stole the money over four years by creating a dummy bank account in the name of software firm ISB Ltd which carried out work for Lloyds, even throwing directors off the scent when they questioned paperwork.

She said she worked 60 hours a week for two years in two jobs, first as a senior manager for third-party suppliers and then additionally as interim head of fraud and security.

Judge Deborah Taylor told her: 'You were a senior employee in the bank in a position with a high degree of trust at a time when Lloyds was substantially supported by a lot of taxpayers’ money following difficulties sustained by the bank in the financial crisis.

'You disregarded your duties out of a sense of entitlement to take other people’s money for your own benefit and that of your family.'

Harper, of Croydon, south London, had previously pleaded guilty to a single charge of fraud by abuse of position and a second charge of money laundering, both between December 28 2007 and December 21 last year.'If I went to work for another company I would probably be earning four times as much.'

But Anthony Swift, prosecuting, said: 'The reality is that over four years she continued to work for the bank and fleeced them of £2,463,750.88p.

'She would not have been paid that kind of salary over that period by another bank.'
Jessica Harper, 50, was jailed for five years for fraud and four for money laundering to be served concurrently

She knew ISB’s managing director, Simon Sutcliffe, socially and had helped the firm win work with Lloyds.

The court heard that she lied to ISB’s managing director Simon Sutcliffe, who she knew socially, when he questioned her over payment receipts, telling him the problem had been resolved.

The totally innocent firm was facing the prospect of losing its work with the bank.

Harper’s brothers, Simeon, Matthew and Gareth Tyrell, who all received money, all expressed 'shock, upset and surprise' at what she did, saying they believed she had earned the money legitimately, the court heard.

They were helping police and the bank in selling their properties and returning the money.

Mr Swift said claims by Harper of giving some of the money to charity had not been substantiated, and she had a French bank account they had not yet been able to examine.

Harper said can repay £1.7 million of the money she took, and has so far cashed in her pension and shares and sold her home in Croydon to pay back £709,000, Mr Swift said.

Carol Hawley, defending Harper, said her client had a solid work ethic all her adult life, with a long history of charity fundraising.

'She was working under a huge amount of pressure and for a long period of time,' Ms Hawley said.

She describes that period of her life when work became all- consuming.'

She added that Harper had also been suffering from increasing hearing loss and was now deaf in one ear.

The barrister added: 'She still today struggles to explain the reason behind her behaviour.'

But Judge Taylor replied: 'She gave an explanation at the time to police that she felt entitled to the money she was given.'

The judge rejected Harper’s claims of stress caused by two jobs, saying: 'These were roles in which you were expected to show the highest levels of probity.'

She added that she believed Harper had benefited financially from the crimes, while having no thought for the reputation of IBS and its staff.

Harper was jailed for five years for fraud and four for money laundering, to be served concurrently. She will serve half before being released on licence.

The Metropolitan Police said it was actively seeking the return of more of Harper's assets, in a bid to recoup more of the outstanding money.

Detective Chief Inspector Robin Cross, from the Fraud Squad, said: 'This case is an example of a serious abuse of position by a senior bank employee who should have been protecting the bank and its customers against fraud.

'Jessica Harper stole nearly £2.5 million from the bank over a number of years and, while she has repaid some of the money, we are actively seeking further assets for confiscation.

'This should serve as a warning to any bank employee that the Met will thoroughly investigate such frauds, which rarely remain undiscovered.

'Jessica Harper has destroyed her own reputation and the sentence reflects the seriousness of the offence.'

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