Jail for trader who cost bank £5million

A freelance trader who tried to cover up his losses on the stock market by lying to Lloyds TSB, costing them £5million, was jailed today for 15 months.

Mahesh Dalamal, 31, bought US technology shares but when the price dropped he wrote to Lloyds TSB claiming he had sold them.

In fact, he was holding on to the shares in the hope the price would rise. After the bank discovered his deceit, Dalamal was forced to sell his million-pound home and move in with his parents. The Old Bailey heard that after the bank made inquiries Dalamal faxed a bogus letter from a fictional "Martin Lane, Head of Compliance at Jefferies & Co", claiming there had been complications in the transactions.

When the deception was discovered, Dalamal's portfolio, worth £23 million, was sold causing a blip in the market that made a loss to the bank of £5 million.