Barclays Private Clients International and Barclays Bank are reportedly suing mortgage brokerage Savills Private Finance and three other property-related firms in relation to losses from an alleged mortgage fraud.

The banking giant is also suing chartered surveyors Stocker & Roberts Partnership, O’Sullivan Law Solicitors and solicitors Montague Lambert & Co, according to the online publication Mortgage Strategy.

All four will defend themselves against the allegations, the report says.

A hearing on the case, which is about a number of mortgages or properties between 2006 and 2007, was held on 25 January and a trial will take place if an agreement cannot be reached, says the report.

According to the publication, which cites documents it obtained, the bank alleges that Charles Goldsmith, an employee of Savills Private Finance at the time concerned, used the services of Stocker & Roberts to value properties, and that the valuations were “grossly and fraudulently overstated.”

Meanwhile Barclays also alleges that in two transactions the employee was paid £70,000 (around $113,000) and £10,000 personally shortly after the deals were completed, says the news site.

“SPF confirms legal proceedings have been issued against it in relation to five mortgages arranged by one of its employees four years ago,” a spokesperson for Savills Private Finance told the publication.

In another claim, Barclays alleges that in a mortgage transaction involving two properties in London, a property was valued at £19.5 million when it claims the value was £10.6 million. Stocker & Roberts denies it committed any fraud upon the bank

Barclays is reportedly seeking damages in the region of £12 million from the defendants, all of whom are fighting the allegations.