If it was easy to stop pension scams, everyone would be doing it. Clearing up the mess left behind a pension scam is a huge challenge. This is why clear international standards need to be recognised and adopted. The scammers are like flocks of vultures. If people only used regulated firms, they could avoid a lot of scams.
Firm must be fully regulated – with licenses for insurance and investment advice
Advisers must be qualified to the right standard
Firm must have Professional Indemnity Insurance
Clients must have comprehensive fact finds and risk profiles
Firm must operate adequate compliance procedures
Advisers must not abuse insurance bonds
Clients must understand the investment policy
All fees, charges and commissions must be disclosed
Investors must know how their investments are performing
Firm must keep a log of all customer complaints
Why is regulation so important?:
If a firm sells insurance, it must have an insurance license.
If a firm gives investment advice, it must have an investment license.
Many advisers will claim that if they only have an insurance license, they can advise on investments if an insurance bond is used. This practice must be outlawed, because this is how so many scams happen.
Most countries have an insurance and an investment regulator. They provide licenses to firms. Some regulators are better than others. Most regulators do some research and only give licenses to decent firms.
History tells us that most pension scams start with unlicensed firms. Here are some examples:
Continental Wealth Management invested 1,000 clients’ funds in high-risk structured notes. Investors started with £100 million. Most have lost at least half. Some have lost everything. Continental Wealth Management had no license from any regulator in any country.
Serial scammers such as Peter Moat, Stephen Ward, Phillip Nunn, and XXXX XXXX all ran unlicensed firms. Peter Moat operated the Fast Pensions scam which cost victims over £21 million. Stephen Ward operated the Ark, Evergreen, Capita Oak, Westminster and London Quantum pension scams which cost victims over £50 million. XXXX XXXX operated the Trafalgar pension scam which cost victims over £21 million.
Phillip Nunn operates the Blackmore Global Fund which has cost victims over £40 million. Serial scammer David Vilka has been promoting this fund. Over 1,000 people may have lost their pensions.
Firms that give unlicensed advice are breaking the law. Unlicensed advisers often use insurance bonds. These bonds pay high commissions. The funds these advisers use also pay high commissions. The advisers get rich. The clients get fleeced. The funds get destroyed. Insurance bonds such as OMI, FPI, SEB and Generali are full of worthless unregulated funds, bonds and structured notes.
Unlicensed firms hide charges from their clients. Most victims say they would never have invested had they known how expensive it was going to be.
Hidden charges can destroy a fund – even without investment losses. Licensed advisers normally disclose all fees and commissions up front. This way, the client knows exactly how much the advice is going to cost.
People can avoid being victims of pension scammers. Using properly regulated firms is one way. An advisory firm should have both an insurance license and an investment license. Don’t fall for the line: “we don’t need an investment license if we use an insurance bond”. Bond providers such as OMI, FPI, SEB and Generali still offer high-risk investments. The insurance bond provides zero protection. And the bond charges will make investment losses much worse.
Blackmore Bond – yet another reason why only regulated advisers should be used for investment advice.
The clear link between the recently-failed LCF Bond and Blackmore Bond through Surge Group remind us how important regulated investment advisers are.
In the news again is the troubled Blackmore Group. This time we read that they have ‘temporarily’ closed their bond – the Blackmore Bond – to new business. Just a few weeks ago, Blackmore Bond changed the wording of the sales material on this product.
The Blackmore Bond transparency was not due to Blackmore Group having a yearning desire to be honest with their victims. It was all down to new FCA rules for being “clear, fair and not misleading” whenever an investment is promoted.
Recently, there has been a lot of media coverage on high-cost, high-risk bond investments failing. One of these is London Capital & Finance (LCF). This unregulated bond collapsed and went into administration earlier in 2019. £236 million had been invested into it. But investors had not been warned of the costs and risks involved. Of this £236 million, over £50 million was paid to Surge Group for promotional and marketing services.
1,200 victims duped into investing in the LCF bond
have lost at least 80% of their money
Fortunately for investors in the Blackmore Bond, it is still active. However, with such high promotional and marketing costs, the bond needs to be very successful indeed to overcome the initial 20% charges – most of which were paid to Surge.
In relation to the closure of their bond, Blackmore Group state on their website:
“We have achieved our fundraising goals for this tax year and are not currently taking in new investment. We will be introducing our next offering in the following tax year, so please watch this space for future announcements.“
Another questionable investment from the Blackmore Group is the Blackmore Global Fund.
The Blackmore Global Fund has been heavily criticised and also featured on BBC 4 You and Yours. The fund saw 1,000 victims conned into this expensive, illiquid and high-risk UCIS. It is illegal to promote UCIS funds to retail investors in the UK. They are certainly not suitable investments for a pension fund.
David Vilka of Square Mile International Financial Services was one of the promoters of the Blackmore Global Fund. Vilka invested many of his UK-resident clients into this unsuitable fund. Undoubtedly, he was paid fat commissions for these investments. Unregulated and unqualified, Vilka was no doubt lining his own pockets, instead of doing what was best for his clients.
Vilka lied to his clients, claiming to be fully regulated. He transferred his UK-based victims’ pensions into the Optimus Retirement Benefit Scheme No.1 QROPS. Much of this money was invested into the Blackmore Global fund.
The connection between Blackmore Group’s Bond and London Capital & Finance (LCF) is Surge – a marketing agent. The LCF bond was promoted by Surge until it collapsed in December 2018.
After LCF collapsed, Surge went on to promote the Blackmore Bond. This promotion was done using ISA-rating websites.
London Capital & Finance is not the only failed investment in recent years. Other failures include Axiom with £120m worth of investors’ funds (£30m of which was with life offices FPI and OMI); LM £456m (£90m with FPI and OMI); and Premier New Earth (NERR) £207m (£62m with FPI and OMI).
The new transparency demanded by the FCA is much needed.
Unfortunately, it won’t change the fact that well over one billion pounds have been lost between LCF, Axiom, LM and NERR. We are still left wondering why the regulators have not taken a tougher stance on restricting the promotion of such UCIS funds. The FCA’s limp stance is especially worrying when the promoters of these high-risk bonds and funds are targeting UK retail investors.
All these failures and losses should remind both regulators and consumers that only regulated firms should be used for investment advice.
April 2019 sees the battle between Store First and the Insolvency Service. On April 15th, the High Court proceedings will kick off. As a result, the Store First v Insolvency Service will determine how many people will lose their pensions permanently. Two sets of very expensive lawyers – DWF and Eversheds Sutherland – will battle it out to see if Store First can continue trading. In the end, if the Insolvency Service wins the war, then both law firms and an insolvency practitioner will get rich.
As a result of the Insolvency Service winning, 1,200 pension scam victims will probably lose the majority of their investments in Store First. In most insolvencies, there is little left after the various snouts in the insolvency trough have had their fill. Investors will be lucky to get 10p in the pound. If there’s an “R” in the month. And if it is snowing. And if Brexit has a “happy ever after” ending.
The Insolvency Service says it is “in the public interest” to wind up Store First. But are they right? Isn’t winding up the company going to do even more unnecessary damage?
One very important issue is that the Insolvency Service’s witness statement dated 27.5.2015 (by Leonard Fenton) is so full of inaccuracies, misunderstandings, incomplete facts and an obvious failure to understand how the scam worked – as to be utterly laughable. The Insolvency Service and the High Court will rely heavily on this witness statement – and yet it has so many holes and errors that it is misleading, incomplete and meaningless. I asked the Insolvency Service questions about the incorrect and incomplete statements and made numerous comments on the failings contained within the statement. But the Insolvency Service did not even have the courtesy to reply or even acknowledge my contribution. In my view, this is arrogance and incompetence in the extreme.
This impending legal battle (which will cost the taxpayer £millions) is riddled with many more questions than answers. Here are a couple of my questions:
QUESTIONS RE STORE FIRST V INSOLVENCY SERVICE BATTLE
Why did HMRC and tPR register Capita Oak and Henley Retirement Benefits Scheme as pension schemes in the first place?
How many of the many scammers behind Capita Oak and Henley have been prosecuted?
The reason for my questions is that both HMRC and tPR were negligent in registering the two occupational pension schemes. This was because the schemes were obvious scams from the outset. They both had non-existent sponsoring employers which had never traded or employed anybody. And they weren’t even in the UK.
HMRC was blind, stupid and lazy at the start – when these two schemes were registered by known scammers. But several years later, HMRC woke up pretty smartly and sent out tax demands for the “loans” the victims received. The Store First v Insolvency Service Battle is probably doomed to ignore HMRC’s negligence in causing this disaster in the first place.
James Hay and Suffolk Life had been facilitating the Elysian Fuels investment scam at around the same time. And this was with the considerable “help” of serial scammer Stephen Ward. So, this was a prime time for scams and scammers. However, both HMRC and tPR failed the public back then and have continued to do so ever since.
In 2015, the Insolvency Service identified and interviewed most of the scammers behind the Store First pension scam. In their witness statement dated 27th May 2015, Insolvency Service Investigator Leonard Fenton cited statements and evidence from all the key players.
KEY PLAYERS IN THE STORE FIRST PENSION SCAM:
Ben Fox
Stuart Chapman-Clarke
Michael Talbot
Sarah Duffell
Bill Perkins
XXXX XXXX
Alan Fowler
Jason Holmes
Karl Dunlop
Christopher Payne
Keith Ryder
Craig Mason
Patrick McCreesh (of Nunn McCreesh – along with Phillip Nunn)
Tom Biggar
Paul Cooper (Metis Law Solicitors)
That is fifteen scammers who have never been prosecuted. They have not only never been brought to justice, but many of them went on to operate further scams and ruin thousands more lives – destroying more £ millions of hard-earned pension funds.
And what of Toby Whittaker’s Store First? There is no question that store pods are not suitable investments for pension fund investments. Car parking spaces are unsuitable for pensions as well. There are, in fact, a long list of inappropriate investments for pensions – including anything high-risk, illiquid and expensive or commission-laden.
All the above are routinely used and abused by pension scammers as “investments” for some dodgy scheme. Invariably, the above investments come with pension liberation fraud and/or huge introduction commissions and hidden charges. However, it is rarely the fault of the artist, wine maker, start-up entrepreneur, truffle farmer or property developer that the scammers profit so handsomely from abusing their products.
Store First v Insolvency Service Battle
I hope Store First defeats the Insolvency Service in the forthcoming battle in the High Court this month. And I hope that the public and British government will finally get to see what embarrassingly inept, corrupt, lazy regulators and government agencies we have. I will publish the Insolvency Service’s witness statement separately for anyone who wants to read the Full Monty.
Let us not forget that the solicitors acting for the Insolvency Service – DWF LLP – also act for serial scammer Stephen Ward. It was Ward who was responsible for the pension transfers which subsequently invested in Store First. Had it not been for him, 1,200 victims’ pensions totaling £120 million wouldn’t now be at risk. But, somehow, DWF LLP doesn’t think that is a conflict of interest?!?
Let us be clear: if the Insolvency Service wins the court case, the investors will get nothing. This will mean that, yet again, the victims will get punished. If Store First wins, the investors will get at the very least half their money back. If they are patient, they may even get it all back.
The mis-selling of life assurance policies and long-term savings plans has been a regular topic in our blogs. Many victims of pension scams see their funds mis-invested into life assurance policies. These life assurance policies do little more than drain the fund value with their expensive fees and costs.
Generali has for years been aggressively peddling these toxic products. Interestingly, they have just pulled their contractual savings plans – Vision and Choice – from the UAE market. Interesting and attractive names for profoundly ugly, expensive and destructive products.
We have to wonder if all the negative press surrounding Generali’s life assurance bonds has anything to do with it? Since 2016 there has been a huge rise in complaints surrounding the mis-selling of these products. With huge, concealed start-up costs, the funds rarely ever reach their original investment amount, let alone make a gain.
“We will not be accepting any new business applications for our current unit-linked saving products,” said Vitiello – General Manager of Generali’s Dubai branch. “There will be no impact at all to existing clients and contracts. They will continue to be serviced in the same manner as before.” In other words, they will just keep on losing money, being tied in for an unacceptable length of time and paying extortionate charges.
This is not the only big change Generali has made this month. The National.ae also reported that:
“Generali’s decision to stop distributing its contractual savings plans in the UAE came less than a week after the company sold its entire shareholding in its unit, Generali Worldwide Insurance, to the Guernsey-based Utmost Group”
Generali was one of the culprits involved in the huge Continental Wealth Management pension scam, which saw as many as 1,000 victims, invested into high-risk, toxic, professional-investor-only structured notes.
Whilst the bulk of the victims were placed into OMI bonds, at least 25 (but probably nearer 100) of the victims were placed into Generali bonds by the scammers. The sum total of 25 pension funds invested into these toxic insurance bonds was a whopping £6,314,672. The losses on this amount are calculated to be approximately £3,604,528.
One victim invested £793,612 and has just £62,703 left! Losing a massive £730,909.
Another victim invested £142,626 and has lost £90,618! Leaving him with a fund of just £52,028.
Please note these figures are correct as at 2017/2018, so today’s value is now even lower. Despite the funds’ huge decrease in value, Generali continues to take their fees (based on the original amount deposited – not the current depleted value). Therefore, these amounts will continue to fall AND despite the massive loses be locked in for a fixed term.
It is, of course, a relief to know that they have decided to stop peddling these toxic, inappropriate bonds to victims. But we can’t help wondering why Generali have suddenly done this and really feel for those already caught up in these bogus “life” policies. Seems to us Generali are jumping ship to avoid the new regulations. With sudden revelations that maybe they should have checked all the details just a little bit more – and declined to take business from unregulated scammers.
As Generali are busy making changes and sales, we can only hope that compensating the victims of the CWM scam is on their to-do list. As they have sold their entire shareholdings, you might think that an honest firm would want to make right the wrongs they have done.
Not only did Generali allow these 25 victims to be put into wholly inappropriate funds and high-risk structured notes, but these investment instructions were also accepted from unregulated advisers. The scammers were paid high commissions by Generali and there is no sign of any remorse for the huge losses suffered by the victims.
What we do know is that victims are now preparing their complaints against Generali and CWM. The DGS has found that there is no doubt that the regulations of sale surrounding these products were breached by Generali.
Generali are not the only life office guilty of financial crimes: Old Mutual International and SEB were even worse – facilitating losses on a massive scale in the Continental Wealth Management case. OMI bought £94,000,000 worth of ultra-high-risk structured notes for retail investors – resulting in huge losses. Old Mutual was also heavily involved in more than £1,000,000,000 worth of losses in the Axiom, LM and Premier investment scams.
Seems it is no accident that “Generali” is an anagram of “Liar Gene”.
As 2018 draws to a close, a recap is in order to review the year’s progress in the war against pension scammers. Let us not forget – in the immortal words of the Pensions Regulator’s Lesley Titcombe: “scammers are criminals“. However, the sad truth is that most of them have not been prosecuted or jailed.
The vast majority of the well-known pension scammers are still roaming free, busy thinking up yet more life-destroying schemes to make them rich and the victims poor. Whilst the scammers enjoy champagne this New Year’s Eve, many victims will be worrying themselves sick about their bleak financial future.
The Pensions Regulator, the Serious Fraud Office, the Insolvency Service, crime enforcement agencies and courts all seem to drag their feet when it comes to actually bringing charges against these criminals. Yet we see people being locked up for renting out caravans to help vulnerable homeless families! I would love it if this was a short and sweet blog, with many happy endings. But, alas, the scams are plentiful and the victims are left uncompensated for their losses.
Let’s have a quick round up of where we are with the scams and scammers. And remember: all the thousands of victims want to see the scammers sent to jail and the keys thrown away so they can’t ruin any more innocent people’s lives.
5G Futures
5G Futures: in May 2013 Garry John Williams and Susan Lynn Huxley were suspended as trustees of the 5G Futures pension scheme, and from trust schemes in general. Pi Consulting was appointed as the new trustee by the Pensions Regulator.
About 400 people had invested a total of £20m into the 5G Futures scheme – which was invested in high-risk, illiquid off-shore investments, with insufficient diversification making them completely unsuitable for pension scheme investments. There was no due diligence exercised by Williams and Huxley – and the scheme records were a mess.
The scheme operated pension liberation through ‘loans’ to members. Williams and Huxley were found to have taken very high commissions on the investments – taking nearly £900,00 in one year alone.
One of the most worrying things, however, is that the pension scammers don’t just leave the pensions industry and dedicate themselves to helping their many distressed victims – they start up all over again:
Stephen Ward: (this will not be the last time you hear this name in this blog) was the mastermind behind this scam (dating back to 2010). It was his first known scam – but by no means his last one. What is left of the Ark fund, stands still frozen, in the hands of Dalriada Trustees, who continue to take their yearly costs and fees from what little is left. Dalriada has done nothing to ensure the scammers are prosecuted – saying it is “not within their remit”. The victims of the Ark scam also have the heavy hand of HMRC hanging over them. And let us not forget that it was HMRC who happily registered this scam and failed to withdraw the registration when they discovered that Stephen Ward was operating pension liberation fraud.
Dalriada has never reported Stephen Ward to the police as it is not “within their remit” to ensure the scammers are prosecuted.
In 2018 we saw Stephen Ward being banned from acting as a pension trustee. Eight years after his first scam, he has still not been imprisoned for the millions of pounds’ worth of life savings he has destroyed and the thousands of lives he has ruined.
Other prominent figures in the Ark scam were Julian Hanson – who went on to play a key role in the Friendly Pensions scam; George Frost who went on to operate a new pension liberation scam using truffle trees as investments; Andrew Isles who went on to sell his accountancy business, Isles and Storer to LB Group; Peter Moat of Blu Debt Management who went on to operate the Fast Pensions scam. None of these scammers has ever been convicted or jailed.
Axiom
Another pension liberation scam, which saw victims with HMRC tax demands of 55%. Rex Ashcroft of Wealth Protection International was one of the main introducers of this scam. According to his Linkedin profile, he offers business development strategy planning for the UK, Spain, Portugal and France. He also offers “day-to-day application of wealth protection strategies”. Ashcroft lied to Axiom victims telling them they could access part of their pensions and not pay tax on the cash they took out.
David Vilka, Phillip Nunn and Patrick McCreesh have never been convicted or jailed. Blackmore Global Group is still being promoted by Phillip Nunn! Nunn and McCreesh had been the main lead generators in the Capita Oak scam – earning nearly £1 million in the process.
This was another of Stephen Ward´s scams – on which he worked closely with his pensions lawyer Alan Fowler (ex Stevens and Bolton Solicitors) and his sidekick Bill Perkins. Ward carried out the transfer administration for this scam which was mainly operated by XXXX XXXX who offered victims 5% Thurlston “loans”. Over 300 victims are facing the partial or total loss of their pensions and are also now being pursued by HMRC for tax liabilities on the “loans”.
Capita Oak – like Ark – was placed in the hands of Dalriada Trustees. But Dalriada has never reported Stephen Ward – or any of the other scammers – to the police as it is not “within their remit” to ensure the scammers are prosecuted.
Stephen Ward, Alan Fowler, Bill Perkins and XXXX XXXX have never been convicted or jailed (although XXXX XXXX is under investigation by the Serious Fraud Office).
Stephen Ward’s firm Premier Pension Solutions (in Moraira, Spain) was the “sister” firm of Continental Wealth Management, run by scammer Darren Kirby. This was one of the biggest single scams – known as CWM – with around 1,000 victims losing part or all of their life savings. Other scammers involved were Anthony Downs, Dean Stogsdill, Alan Gorringe, Richard Peasley, and Neil Hathaway.
This scam was promoted by cold-calling victims and promising unrealistically high returns and “capital protection”. Darren Kirby and Anthony Downs used the victims’ funds to invest in totally unsuitable, high-risk, fixed-term structured notes. This scam saw huge commissions paid by the life offices – Old Mutual International, SEB, and Generali – as well as by the structured note providers: Leonteq, Commerzbank, Royal Bank of Canada, and BNP Paribas to this unregulated firm. Let us not forget that this was without question financial crime and was facilitated by the life offices.
Old Mutual International, run by ex IoM regulator Peter Kenny, was the leading life office which facilitated the CWM scam. Generali and SEB also routinely accepted business from these known scammers and unlicensed advisers.
Stephen Ward, Darren Kirby, Anthony Downs, Dean Stogsdill, Alan Gorringe, Richard Peasley, and Neil Hathaway have never been convicted or jailed.
James Hay and Suffolk Life were accepting Elysian shares for liberation purposes
Another Stephen Ward creation which was operating 80% liberation with the full cooperation of the SIPPS providers James Hay and Suffolk Life. The SIPPS providers and the victims could face tax charges of up to £20 million from HMRC.
Despite clear evidence that Stephen Ward pushed this scam in emails to Alan Fowler and Bill Perkins, neither Ward nor Fowler nor Perkins have ever been prosecuted or jailed.
A New Zealand QROPS scam with Marazion pension loans
When Ark got shut down, Stephen Ward went straight to New Zealand to set up his next pension liberation scam with Simon Swallow of Charter Square. A further 300 victims were scammed out of over £10 million and conned into Marazion “loans” AND locked into the Evergreen scheme for five years. After the five years victims were told: ´Despite our best efforts, Evergreen has not been as successful as we had originally hoped.´ Evergreen was wound up April 208.
This scam was promoted by Darren Kirby’s Continental Wealth Management which cold called the victims.
Stephen Ward, Darren Kirby, and Simon Swallow have never been convicted or jailed.
It was determined that there is no doubt this was a scam.
Peter and Sara Moat and their accomplices have never been convicted or jailed.
Friendly Pensions Limited (FPL)
Back in January of 2018, the Pensions Regulator asked the High Court to act on their behalf in the Friendly Pensions matter. Scammers: David Austin, Susan Dalton, Alan Barratt and Julian Hanson (also involved in ARK) were ordered to pay back £13.7 million they took from their victims and banned from being pension trustees. However, Dalriada the independent trustee appointed by TPR to take over the running of the schemes, is in charge of confiscating the scammers’ assets for the benefit of their victims. (Who knows how long this could take: how long is a piece of string?) As yet, no compensation has been offered to the victims.
David Austin, Susan Dalton, Alan Barratt and Julian Hanson and their accomplices have never been convicted or jailed. However, there have recently been some arrests – so let us hope this results in maximum sentences.
Two bogus “occupational pension schemes” set up for pension liberation fraud by Stephen Ward after the Evergreen QROPS scam hit the rocks (when HMRC removed Evergreen from the QROPS list). Victims have no idea where or how their pensions are invested. The pensions are allegedly invested in “The Treasury Plus Fund” (whatever that might be – and it is not likely to be anything good) and the trustee is Ward’s bogus trustee firm Dorrixo Alliance.
Nobody knows the total aggregate value of lost pensions and tax liabilities Ward has caused – we hazard a guess at a figure in the region of £100 million +.
Another double act by Stephen Ward and XXXX XXXX. This was the “sister” scheme to Capita Oak. Ward did the transfer administration – from safe, well-known and regulated pension providers to this bogus occupational scheme run by XXXX.
Neither Stephen Ward nor XXXX XXXX has ever been convicted or jailed.
Another pension liberation scam – placed in the hands of Dalriada Trustees by the Pensions Regulator.
Incartus was placed in the hands of Dalriada Trustees by the Pensions Regulator. But Dalriada has never reported the scammers to the police as it is not “within their remit” to ensure the scammers are prosecuted.
None of the Incartus or Bluefin trustees scammers has ever been convicted or jailed.
£11.9 million worth of transfers were made, with the victims receiving approximately 50% of their pension as a loan and the promise of the rest being invested into a high-interest generating SIPPS. The loans were made from the pensions and therefore the victims have the usual HMRC tax demand letters. Further to the victims’ misery, the other 50% of the funds was not invested as promised. Most of the funds were swallowed by high commissions paid to the scammers.
None of the KJK Investments/G Loans scammers has ever been convicted or jailed.
Another of Stephen Ward’s many pension scams, this one was courtesy of his bogus pension trustee firm Dorrixo Alliance, his accomplice Gary Barlow at Gerard Associates, and introducers at Viva Costa International. Like Ward´s other scams, London Quantum scam was never set up for the benefit of the victims, but in the interests of Stephen Ward and his team of scammers to earn the maximum amount of commission out of the toxic, illiquid, high-risk investments.
The London Quantum scam is now in the hands of Dalriada Trustees.
London Quantum – like Ark, Capita Oak and Fast Pensions – was placed in the hands of Dalriada Trustees by the Pensions Regulator. But Dalriada has never reported Stephen Ward – or any of the other scammers – to the police as it is not “within their remit” to ensure the scammers are prosecuted.
Stephen Ward and Gary Barlow have never been convicted or jailed.
This pension liberation scam dating back to 2013 and 2014, involved around £1m of victims pension funds. Anthony Locke, was sentenced to a five-year jail term and Ray King, 54, who was employed by Lock, was given a three-year jail sentence.
It is great that these two crooks received jail terms, however, they are relatively “small fry” in comparison to the other serial scammers who are still walking free! The question remains: why have two minor players such as Locke and King been convicted and jailed while the “big fish” remain free to keep on scamming?
116 victims were scammed out of their pensions by James Lau of FCA-regulated Wightman Fletcher McCabe. Victims were assured the loans they were given did not come from their pension funds and would not be taxable by HMRC. The trustees of the scheme – Peter Bradley and Andrew Meeson (both ex HMRC) of Tudor Capital Management – were jailed for eight years for cheating the Public Revenue. James Lau is currently under criminal investigation by the Insolvency Service. The victims are awaiting a verdict on whether they will still have to pay the tax penalties.
James Lau has not yet been convicted or jailed – although he is clearly a wanted man.
This scam was facilitated by STM Fidecs in Gibraltar – one of Europe’s biggest QROPS providers. The regulator did order Deloittes to carry out an inspection into STM Fidecs’ books, but no action was taken against STM Fidecs for their part in this scam.
STM Fidecs accepted transfers into the QROPS by UK-resident victims “advised” by XXXX XXXX – even though he was not licensed to give financial advice. And then XXXX’s clients were 100% invested in XXXX’s own fund.
XXXX XXXX has not yet been convicted or jailed – although he is clearly under investigation by the Serious Fraud Office.
Another of the schemes under investigation by the SFO. This liberation scam with more than £3 million worth of (now worthless) investments was registered and administered by Stephen Ward.
Windsor Pensions
A no-frills pension liberation scam run by Florida-based Steve Pimlott. This scam has been going on for years and there is no sign of any let up – despite the fact that the regulators and ombudsman are well aware of Pimlott’s modus operandi. Pimlott doesn’t bother with any attempt to conceal the loans with fancy “loans” or complex mechanisms to try to “distance” the liberation from the pension transfer. He uses QROPS and a fraudulently-set-up bank account in the Isle of Man (of course!). HMRC catches many of the victims and charges them 55% tax on the liberated amount. Pimlott charges around 15% for the liberation.
Steve Pimlott has not yet been convicted or jailed
What a sorry state of affairs that out of all the pension schemes I have mentioned here, only one of them has seen the scammers jailed. Serial scammers like Stephen Ward and XXXX XXXX seem to slip the noose of justice again and again.
Fighting pension scams: Regulation
LCF Bond, Blackmore Bond, Blackmore Global Fund, LM, Axiom and Premier New Earth – all high risk failures. The investors have lost some or all of their money in these bonds and funds. They were mostly sold by advisers without an investment license. Investors lost well over £1 billion. Advisers (introducers) earned £millions in commissions.
Continental Wealth Management invested 1,000 clients’ funds in high-risk structured notes. Investors started with £100 million. Most have lost at least half. Some have lost everything. Continental Wealth Management had no license from any regulator in any country.
Serial scammers such as Peter Moat, Stephen Ward, Phillip Nunn, and XXXX XXXX all ran unlicensed firms. Peter Moat operated the Fast Pensions scam which cost victims over £21 million. Stephen Ward operated the Ark, Evergreen, Capita Oak, Westminster and London Quantum pension scams which cost victims over £50 million. XXXX XXXX operated the Trafalgar pension scam which cost victims over £21 million.
Firms that give unlicensed advice are breaking the law. Unlicensed advisers often use insurance bonds. These bonds pay high commissions. The funds these advisers use also pay high commissions. The advisers get rich. The clients get fleeced. The funds get destroyed. Insurance bonds such as OMI, FPI, SEB and Generali are full of worthless unregulated funds, bonds and structured notes.
Unlicensed firms hide charges from their clients. Most victims say they would never have invested had they known how expensive it was going to be.
People can avoid being victims of pension scammers. Using properly regulated firms is one way. An advisory firm should have both an insurance license and an investment license. Don’t fall for the line: “we don’t need an investment license if we use an insurance bond”. Bond providers such as OMI, FPI, SEB and Generali still offer high-risk investments. The insurance bond provides zero protection. And the bond charges will make investment losses much worse.
n the news again is the troubled Blackmore Group. This time we read that they have ‘temporarily’ closed their bond – the Blackmore Bond – to new business. Just a few weeks ago, Blackmore Bond changed the wording of the sales material on this product.
Another questionable investment from the Blackmore Group is the 
Please note these figures are correct as at 2017/2018, so today’s value is now even lower. Despite the funds’ huge decrease in value, Generali continues to take their fees (based on the original amount deposited – not the current depleted value). Therefore, these amounts will continue to fall AND despite the massive loses be locked in for a fixed term.
Generali are not the only life office guilty of financial crimes: Old Mutual International and SEB were even worse – facilitating losses on a massive scale in the Continental Wealth Management case. OMI bought £94,000,000 worth of ultra-high-risk structured notes for retail investors – resulting in huge losses. Old Mutual was also heavily involved in more than £1,000,000,000 worth of losses in the Axiom, LM and Premier investment scams.
As 2018 draws to a close, a recap is in order to review the year’s progress in the war against pension scammers. Let us not forget – in the immortal words of the Pensions Regulator’s Lesley Titcombe: “
Neither Garry Williams nor Sue Huxley has ever been convicted or jailed.
Stephen Ward’s firm Premier Pension Solutions (in Moraira, Spain) was the “sister” firm of Continental Wealth Management, run by scammer Darren Kirby. This was one of the biggest single scams – known as 
Fast Pensions
Another of Stephen Ward’s many pension scams, this one was courtesy of his bogus pension trustee firm 
116 victims were scammed out of their pensions by James Lau of FCA-regulated Wightman Fletcher McCabe. Victims were assured the loans they were given did not come from their pension funds and would not be taxable by HMRC. The trustees of the scheme – Peter Bradley and Andrew Meeson (both ex HMRC) of Tudor Capital Management – were jailed for eight years for cheating the Public Revenue. James Lau is currently under criminal investigation by the Insolvency Service. The victims are awaiting a verdict on whether they will still have to pay the tax penalties.