SALMON ENTERPRISES PENSION SCAM – THE WAY THE SCHEME WORKED
James Lau, allegedly a financial adviser with Wightman Fletcher McCabe operating from an office in the Regus building, Great Pultney Street, Bank London. Lau explained the Salmon Enterprises pension scam to clients using a series of diagrams that members could release funds from a pension transfer and use them for any investment rather than be tied to investments chosen by the pension trustee/administrator. He also explained that part of it could be taken out as a loan which he claimed was legal. He also stated that HMRC was aware of this and accepted that it was not a tax avoidance scheme.
Members never received any loan agreement or pension statement from either James Lau or the trustees – Tudor Capital Management – despite repeated requests to both Lau and his assistant Victor Ray. A number of members subsequently introduced the scheme to friends, family and associates.
The advantages stated by James Lau were that pension funds could be released legally and used for a person’s own use. Members could invest it or receive as a non-repayable loan which was “legal and non-taxable as it was a commercial loan”. Lau also claimed the loan would have a nominal percentage each year to pay back which would be covered by the rest of the pension left (approx. 15% of the transfer) which would be invested. The returns it would make would cover the interest of the loan. Lau made it clear this was not a tax avoidance scheme and complied with HMRC rules and that the loan could be extended.
Lau also claimed that the underlying assets of the scheme were “various, diverse, low-risk opportunities, including forex in his own company Goswell Square Capital – a venture with Omari Bowers and Andrew Skeene who have since been investigated and made bankrupt following the collapse of the FX venture.
James Lau claimed to be authorised by the FSA at the time with Wightman Fletcher McCable under the Clarkson Hill insurance group.
The trustees of the Salmon Enterprises pension scam – Tudor Capital Management – were the subject of a criminal investigation by the CPS, HMRC and the Pensions Regulator which was published on 8.4.2010 (prior to many of the transfers) and resulted in the trustees: Peter Spencer Bradley, Alison Bradley and Andrew Meeson, being jailed for tax fraud. Tudor Capital Management had been the trustees for 25 schemes in total.
THE IDENTITY OF THE MAIN PLAYERS
Peter Spencer Bradley
HOW THE MAIN PLAYERS WERE INVOLVED
Lau was the main promoter; Ray was the administrator; Bradley and Meeson (now in jail) were the trustees.