A Barclays Bank worker has admitted setting up a fake account, making false compensation claims and forging documents so she could take out a £2,000 loan.

Louise Ellen Young, of Tynwald Grove, Castletown, pleaded guilty to seven counts of fraud by false representation committed over four years.

The 48-year-old will be sentenced on January 19 after a probation report has been completed.

Prosecuting advocate Rachael Braidwood told the court that Young was working at the Victoria Street, Douglas, branch of the bank in March 2020 when the crime was uncovered.

Young had set up an account in 2015 in the name of a former customer and taken out a loan on the account of £2,000. The customer had moved to Scotland in 2013 and then closed her Isle of Man account in 2015.

However, she received a letter this year advising her of loan arrears in relation to the account.

After investigations, the financial crime team found that Young had re-opened the account in July 2015 recording that the woman had attended a Barclays branch.

Young had forged the woman’s signature and taken out a loan of £2,000 which she paid to a savings account linked to hers.

She had then set up a direct debit to repay the loan at a rate of £46 per month from her own account.

However, fees had been incurred as she had insufficient funds to pay the £46 at times.

Young also raised 21 fictitious complaints between September 2016 and May 2019 which had resulted in pay-outs of £995 in total but she had transferred the money to help repay the loan.

AUDIT

In May 2019, the bank started an audit of its accounts as part of its Know Your Client (KYC) procedures with the fake account one which was scheduled to be reviewed. To cover her tracks, Young then forged a colleague’s signature to confirm that a home visit had been carried out to verify the woman’s details and that her passport had been checked.

As a result of the offences prosecutor Ms Braidwood said that £2,086 had been written off by the bank.

Young was interviewed by police and said that, at the time, she had really needed the money and had always intended to pay it back.

She said that her debt had spiralled out of control and she had been ’robbing Peter to pay Paul’.

She also said that she had been suffering from anxiety and depression, and had been drinking.

Ms Braidwood said that, although there had been a significant breach of trust, the value was at the lower end of the scale and the case was therefore suitable to remain in summary court.

Defence advocate Laurence Vaughan-Williams agreed and asked for a probation report to be prepared before sentencing.

High Bailiff Jayne Hughes accepted jurisdiction and Young will be sentenced in summary court.

Bail was granted in the sum of £500 with conditions that she reside at her home address, contact probation, and not leave the island without court consent.

Since Young pleaded guilty the Isle of Man’s Financial Services Authority has also prohibited her from a range of financial activities.

These include performing any function in relation to activity carried on, or proposed to be carried on, by an authorised insurer, a registered insurance manager or a registered intermediary insurance business.

Young also cannot engage in any function within a business in the regulated sector that allows her to handle, access or exercise control over any client’s money or client’s assets.