Paul Flowers, the former Co-Operative Bank chairman, has been ordered to pay £184,000 to the family of a woman he stole from.

Mr Flowers stole from his friend Margaret Jarvis while she battled Alzheimers and continued to steal from her estate after her death, according to the Crown Prosecution Service.

Over several years Mr Flowers wrote himself cheques, withdrew cash and stole the pension of his victim, for whom he held Power of Attorney.

He pleaded guilty to multiple counts of fraud in July 2024 at Manchester Crown Court and was jailed for three years.

The CPS secured a Confiscation Order and Compensation Order yesterday for £184,862 which will be returned to Mr Flowers’ victims.

According to the CPS, Margaret Jarvis had known Mr Flowers for decades. In 1995, before her illness had progressed, she gave Mr Flowers Power of Attorney over her financial affairs. She also made him executor of her will.

Mr Flowers redirected her pension payments to a bank account he controlled and, after she died, failed to inform her pension provider, enabling him to continue stealing from her estate.

Margaret Jarvis bequeathed gifts to several charities as well as £10,000 to her two nieces. Neither the charities nor one of her nieces received the funds due to them from the estate. 

Mr Flowers used his victim’s money to fund his lifestyle, withdrawing cash to pay for extravagant holidays, events, alcohol and home improvements.

Charles Clayton, specialist prosecutor at the CPS Proceeds of Crime Division, said: “Flowers took advantage of Margaret Jarvis’ illness; he knew she wouldn’t realise he was stealing and even continued to steal from her after her death. Today CPS Proceeds of Crime Division ensured that Flowers cannot continue to benefit from his ill-gotten gains and his victim’s final wishes for her estate will finally be fulfilled.”

The FCA banned Mr Flowers, former chairman of Co-operative Bank PLC, from the financial services industry indefinitely in March 2018.

Mr Flowers was convicted of possessing illegal drugs and, separately, was also found to have used his work email for viewing sexually explicit messages and to discuss illegal drugs, said the FCA.

He was chair of Co-op Bank between 15 April 2010 and 5 June 2013. His actions made national newspaper headlines at the time.

The FCA found that Mr Flowers’ conduct demonstrated a, “lack of fitness and propriety” required to work in financial services.

The FCA found that while chairman of the bank, Mr Flowers:

• used his work mobile telephone to make a number of inappropriate telephone calls to a premium rate chat line in breach of Co-op Group and Co-op Bank policies; and
• used his work email account to send and receive sexually explicit and otherwise inappropriate messages, and to discuss illegal drugs, in breach of Co-op Group and Co-op Bank policies despite having been previously warned about his earlier misconduct.

After stepping down as chair, Mr Flowers was convicted for possession of illegal drugs.

The FCA found that Mr Flowers has demonstrated an unwillingness to comply not only with the FCA’s requirements and standards but also with other legal, regulatory and professional requirements.

Co-op Bank previously had a Financial Planning service provided in conjunction with AXA Wealth and AXA Elevate that was launched in November 2011. But this was withdrawn following a review by the bank.