That's dreadful, and he won't have been the first person such a thing has happened to. I'd be terribly worried and upset if it happened to me. (Real criminals don't seem to worry as much!)
It's something that I always feel a degree of concern about - we seem to fear the IR more than we do the law ...but then, that's about right for decent, honest people.
Every year when I send the details to the accountants, I hope that all will be well - I never sell anything 'off the books', or claim anything in expenses that aren't genuine, but it's knowing how random and unreasonable these people can be that makes me concerned - especially in the past few years when the recession effects really had an effect on galleries, and I worry in case the IR start to wonder why there's not so much going through my books now! They can see there's nothing extra in my bank account/savings though, so hopefully that's enough.
In your Fathers case, I'd at least expect compensation from the bank because it was their fault.
I grew very disillusioned with run of the mill high street banks around 20 years ago, so moved all our accounts to Nationwide - brilliant! Only problem I ever had was with a new jobsworth manager only last year who said I couldn't pay in cheques made out to Trisha, but that they should be made out to my full 'Mrs' name - So, was she telling me they'd been doing it wrongly for almost 20 years prior to her appointment? ...I thought not!
...it was actually in black and white in my account details on the bank computers, but I did have to tell her to go and take a look!
After the fiascos of the day, I'm almost afraid to check my bank tonight - posted a rare cheque to them yesterday, and want to see if it arrived - think I'll wait until tomorrow ..may be a more auspicious day