Thursday, June 15, 2006

A squad of fraudbusters is monitoring senior managers at the Royal Bank of Scotland (RBS) after an employee perpetrated the biggest fraud in Scottish legal history.

The 15-strong team has been appointed to work full-time to prevent any repeat of the Donald MacKenzie case, where £21m disappeared in a maze of fake loan accounts.

MacKenzie, 45, from Edinburgh, is facing a lengthy jail term after setting up the fake accounts and then shifting money between them to cover up his tracks.

Around £10m is still missing and some of that may never be recovered.

The fraud was discovered by chance as a result of a major IT upgrade. RBS insiders admit the firm - the UK's second-biggest bank - has been severely embarrassed by the case and is determined to stop it happening again.