A heartless banker swindled a widower with dementia in an £18,000 fraud in a desperate effort to clear his own debts.
Stephen Barr, from Aberdeen, said he deliberately targeted 81-year-old Douglas Crumley – who has since died – because of his confused state.
Barr was working as a link bank manager for Bank of Scotland at Dundee’s Fairmuir branch, having previously served as a personal banking advisor.
Dundee Sheriff Court heard he used his brother’s Nationwide bank account to obtain thousands of pounds, which he then withdrew from cash machines in Aberdeen and Tayside.
“You have pled guilty to an egregious example of a breach of trust,” Sheriff Tim Niven-Smith told Barr, 38.
“You had a position of trust and you grossly abused that position of trust by deliberately targeting a vulnerable member of society, an 81-year-old man who has now passed.
“I consider a likely sentence is a custodial one.”
Sentencing was deferred until September.
Debt-stricken banker
The court heard Barr began working for the Bank of Scotland in 2005 as a call centre worker before moving through the ranks.
Each staff member is given a log-in using a unique file number and all activity using that file number is logged on the bank’s computer system.
Mr Crumley became a customer in 2015 and used a current account for his pension income and general living costs, with no third-party access to his accounts.
Prosecutor Joanne Ritchie said: “In January 2018, the accused’s brother was approached by the accused Barr who asked him if he could use one of his bank accounts.
“The accused alluded to being in considerable debt.
“His brother did not see this as unusual as he had approached him for loans and money many times before.
“He advised the accused that he had a Nationwide account that he was not using.”
Cash machine withdrawals
Between March and April 2018, Mr Crumley – who was in the early stages of dementia – spoke with Barr at the bank’s Murraygate branch about his financial affairs.
Barr added notes to Mr Crumley’s file stating the vulnerable customer was “becoming increasingly confused” with his accounts.
Concerns were first raised in May 2018 when investigators noticed a number of “faster payments” being made by Barr from one of Mr Crumley’s accounts.
Ms Ritchie said: “The staff file number used to make these payments was the same account the accused received his salary into.
“Douglas Crumley did not report these transactions as fraudulent; however, group investigators at Lloyds Banking Group (Bank of Scotland’s parent company) were aware that he was elderly and vulnerable and were concerned.”
Five payments totalling £10,550 were clocked as being suspicious.
The court was told the Nationwide account was only 5p in credit before the first payment of £1,000 was made.
This was immediately withdrawn in cash.
A number of ATM withdrawals were noted during an audit of Mr Crumley’s accounts, which were not in line with his spending habits.
The withdrawals totalled £7,383 and took place at various machines in Dundee and Aberdeen.
A senior investigator established Barr withdrew or transferred £17,939.98 of Mr Crumley’s money between March 8 and May 15 2018.
Deliberately targeted confused customer
Ms Ritchie said Barr was interviewed internally by bank investigators and chose to be unaccompanied.
“The accused stated he was in substantial debt owing to a break-up with an ex-partner, which amounted to over £30,000.
“He advised he had defaulted on some of these debts but had not discussed these issues with his manager due to being embarrassed.
“The accused stated Mr Crumley was a regular customer of his and he was aware he had dementia.
“He later stated he deliberately targeted Mr Crumley due to his vulnerability.
“He said he felt ‘awful’ and made mention of taking his own life.”
Barr was initially suspended by Lloyds Banking Group before being sacked.
Prior to his death, Mr Crumley was refunded by the bank after attending a meeting where he confirmed he did not authorise the transfers.
Prison warning
Barr, of Summerfield Place in Aberdeen, pled guilty to forming a fraudulent scheme at the Bank of Scotland branch on Murraygate between March and May 2018.
In 2021, Barr narrowly avoided a prison sentence after drunkenly driving from Dundee to Aberdeen with a “disintegrated” tyre.
Solicitor Mike Short urged Sheriff Niven-Smith to continue Barr’s bail in order for a social work report to be prepared.
The sheriff told Barr, who attended court with a rucksack: “Thankfully the bank were repaid all monies so that Mr Crumley’s end of life was not financially burdened and his loved ones were not duly hampered by a lack of funds in providing the necessary care to him.
“I see you have come to court today having taken cognisance of the likely disposal.
“I shall continue bail today for the consideration of the report.
“Whilst you can’t buy your freedom, if the bank are to be repaid then there may be a prospect of a non-custodial sentence.”