Tag: British Steel

Transferring pensions to scammers – the ABC of shame

HOW DO PENSION SCAMS WORK?

Every pension scam starts with a negligent transfer. Ceding providers hand over millions of pounds to pension scammers every year. Firms – from Aviva to Zurich – ignore warnings by regulators and HMRC. The providers tick their boxes; the scammers make their millions; the victims are ruined.

The ceding providers have something significant in common with the scammers. When we expose some of the scammers, their lawyers swing into action. I once had letters from Carter Ruck, Mishcon de Reya and DWF land on my desk all in one day. The scammers’ lawyers bleat loudly about their “poor” clients’ reputations.

Every pension scam starts with a negligent transfer

But the ceding providers are just as bad: their lawyers think it is fine to facilitate financial crime. Here’s an extract from recent letter from one of them:

“You state you have “hard evidence” that our customers “have suffered serious loss because of our negligence”. You
have not provided any such evidence. Please therefore produce such ‘hard evidence’ by return.”

This lawyer went on to request evidence that the provider ought to have known that the receiving scheme in
question was a scam. She went on to state that my allegations were “wholly unfounded” and to demand that I take down this blog:

PENSION OMBUDSMAN COMPLAINTS AGAINST NEGLIGENT CEDING TRUSTEES

But this pension provider has given me no reason to take the blog down – and no justification for the claim that the firm is “innocent” of handing over victims’ pensions to obvious scammers. Back in 2010, the Pensions Regulator warned providers about transferring pension funds to scams:

“Any administrator who simply ticks a box and allows a transfer post July 2010 is failing in their duty as a trustee and as such are liable to compensate the beneficiary.”

But the providers have studiously ignored the regulator’s warning for nine years. And thousands have lost their pensions as a result of this sickening negligence.

Transferring pensions to scammers

Here is an “A to Z” of the pensions industry’s negligence in handing over thousands of pensions in defiance of numerous warnings since 2010. Note: to my knowledge not a single administrator has voluntarily compensated their victims – and all have emphatically denied they did anything wrong.

Transferring pensions to scammers – the ABC of shame

Aviva: Second only to Aegon in our list of shame, Aviva transferred numerous pensions from October 2013 onwards. This was well after the Pensions Regulator’s “Scorpion” warning. The largest of these was £258,684.05 at the request of well-known scammer Stephen Ward of Premier Pension Solutions. Ward had been behind the £27 million Ark liberation scam in 2010. On 21st January 2015, Aviva’s Robert Palmer told me they needed no help or advice with avoiding negligent transfers to obvious scams. One month later, Aviva handed over £23,500 to the GFS scam.

British Steel: Long before the much-publicised handing over of multiple members to scammers in 2018, British Steel was handing over pensions to the Hong Kong GFS QROPS scam in 2014 . Mainly advised by serial scammer David Vilka of Square Mile International Financial Services in the Czech Republic, the GFS scam invested hundreds of victims’ funds in UCIS funds such as Blackmore Global.

Clerical Medical: Another disgraceful firm with a long history of handing over pensions to Ark, Capita Oak, Westminster and GFS in 2014.

This A to Z of shame goes on and on – and includes all the big names (who should have known better):

April 24, 2019
British Steelworker – SIPPS Pension Scam Victim

I am saddened to write about the first (but probably not the last) British Steelworker who has fallen victim to an investment scam as well as a pension scam. The British Steelworker was persuaded to transfer his DB pension AND invest £35,000 of his personal saving into an unregulated fund – Dolphin Trust (in Germany).

More and more, we are seeing innocent, hardworking individuals falling victim to pension scams due to their pension funds being invested in unregulated, high-risk, illiquid investments. It is just a matter of time before these unsuitable investments leave victims’ pension funds in tatters.

Mike Pickett, a British Steelworkers, had his savings loaned to an unregulated German property development company called Dolphin Trust. This was courtesy of (now collapsed) IFA firm Active Wealth. Mike not only transferred his pension fund, but also his life savings. His pension funds went into a SIPPS which then found their way to Gallium Fund Solutions.

Mike’s non-pension savings then went through Active Wealth into Dolphin Trust GmbH, which specialises in the development of German-listed buildings and promises 10% returns on investment. He says he was unaware that he was signed up to a fixed term payment (minimum 2 years) and of the associated 5% exit penalty to withdraw money from Gallium early.

Dolphin Trust IS NOT regulated by the Financial Conduct Authority.

The way victims were lured into this scheme is more than a little questionable. It is also somewhat confusing as to who was actually responsible for investing Mike’s funds. Much little like an traditional fable, the storyline seems to shift to ensure the blame can be passed where necessary.

It all started with a presentation made to British Steel Workers via Celtic Wealth. How on earth are these people were able to make a presentation to innocent victims-to-be for an UNREGULATED investment is beyond me. Especially when Celtic Wealth was not authorised to provide investment advice.

And here’s where Active Wealth came in. Celtic Wealth claimed “All regulated advice in relation to pensions and investments is given by Active Wealth (UK) Ltd.”

After the presentation by Celtic Wealth, Mike Pickett claims to have spoken to Active Wealth adviser Andrew Deeney, and says he was visited at his home shortly thereafter by Deeney and a representative of Celtic Wealth. He had three meetings with Active Wealth in total – two of which he said were with Deeney.

Active Wealth has now surrendered its pension transfer permissions following FCA action in relation to advice given to steelworkers. Andrew Deeney, now sole director and shareholder of regulated IFA firm Fidelis Wealth Management, claims he has no relation to these investments.

No one wants to take the blame for these mis-sold investments. Yet all involved would have contributed to the demise of the pension funds – and earned fees and commissions along the way.

Transfers into self-invested personal pensions (SIPPS) dominated the pension transfer market in 2017, accounting for 51 percent of all transfers. It is worrying to consider what percentage of that figure is being transferred into unregulated, toxic investments.

The problem with pension scammers is that they are very good at disguising themselves. They wear smart clothes, they are friendly, knowledgeable and very very persuasive. They have a series of different scams disguised as a great investment – when one collapses they move onto another, just as Andrew Deeney has and the infamous Stephen Ward.

The first way of avoiding a possible scam is to reject all cold calling.

Never take a ‘free’ review on your pension.

Always check that the advisers and companies are regulated

Make sure you know ALL the facts

Low-risk high return investment – THEY DO NOT EXIST

Too good to be true – it probably is

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As always, Pension Life would like to remind you that if you are planning to transfer any pension funds, make sure that you are transferring into a legitimate scheme. To find out how to avoid being scammed, please see our blog:

What is a pension scam?

Follow Pension Life on twitter to keep up with all things pension related, good and bad.

April 12, 2018
Why are so many working people losing their pension funds?

Debbie Abrahams takes a stand in parliament, raising the question of, “how many more pensions scandals does she (Esther McVey, Secretary of State, Work and Pensions) need before she introduces the robust regulatory oversight needed to protect peoples’ pensions for the future?“

Debbie Abrahams (pictured) has been a Member of Parliament for Oldham East and Saddleworth since her by-election victory in January 2011. Debbie was a member of the Work & Pensions Select Committee from June 2011-March 2015 , where she led the call for an independent inquiry into the Government’s punitive New Sanctions Regime. In June 2016 she was appointed Shadow Secretary of State for Work and Pensions.

During Work & Pensions Questions, Debbie stated “100´s of 1000´s of ordinary working people have lost half of their retirement income.” Mentioning British Steel Pension Schemes (BSPS), Carillion, BHS and Capita, she goes on to highlight the government´s failure in tackling pensions governance.

BSPS were pushed into the Pension Protection Fund, the government lifeboat for failed schemes in December 2017. 122,000 members were given just months to make the decision of where to go with their precious pension funds. They had the choice to stay with the scheme, join a new one with reduced benefits set up by Tata Steel, or transfer to a personal pension plan. The Guardian reports further on this stating that, “those who do not make a decision will default into the PPF.”

The Independent released an article about the collapse of Carillion: Carillion was put into liquidation in January 2018 after racking up debts of around £900m and a pension deficit thought to be at least £587m.

The collapse of Carillion has left hundreds of workers redundant and their pension funds in tatters.

BHS had 19,000 members and a combined £571m deficit when the company went into administration in April 2016. Again reported by The Guardian, we can at least be thankful that:
Domonic Chappell is being prosecuted by The Pensions Regulator (TPR) in the latest fallout from the demise of BHS, which he bought for £1 from retail tycoon Sir Philip Green in 2015.

With all this pension turmoil, the path is paved with gold for the serial pension scammers, such as ex CWM employees.

The Financial Times reported that: The Financial Conduct Authority is investigating allegations that steelworkers at Tata UK’s plant in Port Talbot were being targeted by unscrupulous pension transfer advisers. British Steel pension fund trustees have received requests for around 11,000 quotes for pension transfers. With promises of low risk and high returns on the investments, who knows how many peope have fallen victim to these vultures already?

We at Pension Life would also like to know why the government has not put in place tighter regulations on pensions to combat pension scammers. New laws need to be introduced so hard working and trusting citizens aren’t left with decimated pension funds.

We can at least be thankful that the SFO and the Pensions Regulator are pushing forward at the High Court and bringing some pension scammers to justice.

February 7, 2018
QUILTER – A NEW HOBBY FOR OMI?

Quilter – Old Mutual International – new name to try to hide past crimes

QUILTER – A NEW HOBBY FOR OMI? OMI – Old Mutual International – needs to compensate thousands of victims of financial crime which they facilitated. I can’t make up my mind whether they are adopting the brand “Quilter” to attempt to shake off their sordid and toxic past, or whether they are actually taking up quilting.

If OMI really is going to become a quilter, it needs to make a quilt depicting all the criminals whose crimes it has facilitated for so many years. And all the victims who have lost part of or all of their life savings.

What OMI really needs to do is to get firmly behind the prosecution of the criminals – from whom they profited for many years. OMI must contribute to the cost of denouncing these criminals and ensuring they are given maximum prison sentences.

Also, OMI – Old Mutual – must stop allowing toxic, professional-investor-0nly structured notes in their bonds. Typically, these were provided by Commerzbank, Nomura, Leonteq and RBC. If Old Mutual International wants to gamble away its own money on these crap products, then be my guest. But don’t expose retail pension savers to these sordid, high-risk instruments – used by the scammers as mere tiles in a game of Scrabble.

Thanks to IFA Al Rush, there is now a criminal investigation into the hordes of vultures who preyed on the British Steelworkers. This has been eloquently reported by Henry Tapper in his blog about the police investigation at Port Talbot.

Al Rush championing the British Steelworkers who have been scammed

Al Rush has suggested the wording which victims can use to report those who scammed – or attempted to scam – them. And all of what Al and his colleagues have done has been done at their own expense and out of a sense of decency.

Hard to tell the difference between OMI and Quilter and Jabba The Hut

This is in stark and stinky contrast to OMI – Old Mutual International. Since 2011, OMI has sat and watched – like a cross between Jabba The Hut and a Black Widow Spider – while thousands of victims have seen their life savings dwindle away to very little or even nothing. And all the while, taking extortionate fees and paying commissions to the very scammers who ruined the victims in the first place.

So does OMI really think that adopting the name “Quilter” will make future victims fail to make the connection – that this is the same firm that took business from dozens of unregulated scammers such as Continental Wealth Management, Abbey Financial Solutions, Holborn Assets, Guardian Wealth Management, and other “chiringuitos”?

Perhaps the worst crime committed by OMI is not that they took business from unlicensed scammers; not that they allowed 100% of victims’ pension funds to be invested in professional-investor-only, high-risk structured notes; not that they sat there idly and negligently while the clients’ pensions and investments shrank inexorably……

Old Mutual International – the rubbish end of financial services

the worst of OMI’s crimes has been that when there are only a few crumbs left of a life-time’s retirement savings, they will still charge crippling early-exit penalties. OMI, or Skandia, or Quilter or Jabba The Hut or whatever the hell this toxic, evil shower call themselves, have no place in financial services. They have facilitated and profited from financial crime for years and benefited from the misery and ruin of thousands of victims.

In an attempt to emulate Al Rush’s suggested police report for British Steel victims at the hands of the various scammers who targeted, stalked and scammed them, here is my suggested report for OMI victims to make to the police and the regulators. Naturally, this will work equally well for victims of Generali, SEB, RL360, Friends Provident, Hansard, Investors Trust etc.

OMI must be sanctioned for facilitating financial crime

‘I was advised to transfer out of my personal/occupational (delete as appropriate) pension scheme and was lied to when I asked about how much money would be taken from me. I think, over time especially, I will lose/have already lost many tens of thousands of pounds (probably, hundreds of thousands of pounds) in fees which were hidden from me.

This will bleed my pot dry, leave me exposed to poverty in old age and create a burden on the local council.

I was specifically told there would be no penalties or lock-in periods.

Can you help me please, I would like to make a formal statement and help you bring charges against those who did this, and those who helped them’.

January 20, 2018
CHARLIE CHARLIE, SAUSAGE AND CHIPS – WATCH OUT BRITISH STEEL WORKERS!
CHARLIE CHARLIE, SAUSAGE AND CHIPS – WATCH OUT BRITISH STEEL WORKERS!

I’ve just read Henry Tapper’s blog and Frank Field’s letter to Clive Howells of Celtic Wealth Management.

What struck me about Henry’s blog was that he has summarised a new version of the same old, same old situation we’ve seen many times before over the past few years. A cosy and stinky relationship between the introducer, the adviser, the transfer administrator, and the fund manager.

What then struck me about Frank Field’s letter to Clive Howells of Celtic Wealth Management (the “introducer” who has been stalking the beleaguered British Steelworkers) was that Frank is a good sort – and I’d like to buy him lunch (although it won’t be sausages and chips!).

It is clear from what Henry has written, that the British Steelworkers have been in danger of having their pensions invested in a load of complicated and expensive crap by advisory firm Active Wealth UK Ltd:
- Vega Algorithms AWGO – Ultra-Conservative portfolio
- 5Alpha conservative UCITS managed by Newscape Capital Group
- Gallium Fund Solutions Ltd
And, indeed, it looks like at least 100 victims have, sadly, already been successfully transferred into the scheme.

I don’t like the look of Newscape Capital because it runs the risk of harbouring investment scammers. An example of this is the Nascent Fund which facilitated XXXX XXXX’s Trafalgar Multi-Asset Fund investment scam. Henry has eloquently outlined the inherent risks in these three entities as well as the introducer/adviser. So, I won’t add to his already detailed summary.

But let us have a closer look at Frank Field’s letter to Clive Howells of Celtic Wealth Management:

I would be grateful if you could assist our ongoing work on the British Steel Pension Scheme by answering the following questions:
1. What is the a) highest and b) average fee that you have received in respect of BSPS clients?
2. What proportion of the fees you received were paid a) directly by clients; b) by IFAs or other companies?
3. How many payments did you make to individuals to reward them for recommending your service to clients?
4. What benefits do unregulated introducers bring to clients other than sausage and chips?
And herein lies the problem: the scourge of the “introducer”. The ordinary man in the street (or steelworks) doesn’t know the difference between an introducer and an adviser. We’ve seen many instances of individuals and firms acting as introducers for rogue advisers: Viva Costa International for Gerard Associates in Stephen Ward’s London Quantum scam; Continental Wealth Management for Stephen Ward’s Evergreen QROPS/Marazion loans scam; Jackson Francis in XXXX XXXX’s Trafalgar Multi-Asset scam; Phillip Nunn’s Nunn McCreesh firm which lured thousands to financial ruin in the Capita Oak, Henley and multiple SIPPS scams.

History tells us that in many cases these individuals and firms are simply parasites and pimps who prey on vulnerable people. Indeed, Clive Howells used to run Bespoke Pensions in a scheme that saw victims’ pensions being invested in illiquid, speculative, high-risk crap such as The Resort Group’s Cape Verde holiday properties.

Bespoke Pension Services was an unregulated firm and their address was a virtual office. According to their published accounts the firm was insolvent at the time they were trying to get people to transfer their pensions into schemes which invested in unsuitable assets. The two directors/shareholders – Mark Anthony Miserotti and Clive John Howells – had between them (reportedly) an impressive portfolio of investment, consultancy, property development, investment and financial planning companies – one of which was called “Fortaleza Investments” (suggesting something Brazilian).

The Royal London v Donna Marie Hughes case should ring alarm bells straight away with Clive Howells. As should the accusations of sexual assault made against him in 2004. A police officer testified that Howells had groped her bottom and breasts, as well as trying to force his tongue into her mouth. Howells denied the charges – although he did, apparently, admit to snogging the young WPC. At the time of the alleged attack, Howells was a Superintendent with the Welsh Police. And married.

In the words of Lewis Carroll:

“Beware the Jabberwock, my son!

The jaws that bite, the claws that catch!

Beware the Jubjub bird, and shun

The frumious Bandersnatch!”

to which I will add a little verse of my own:

“Beware the introducer, my man

The silver tongue, the patter slick

Beware the likes of Howells if you can

The frumious, bandersnatch, jubjub dick!”

My sincere congratulations and thanks for the sterling work done by Henry Tapper, Darren Cooke and Al Rush to help protect the British steelworkers from the likes of Clive Howells. And a merry xmas to all – especially Frank Field!
December 20, 2017
BSPS – Pension Dilemma for Steel Workers
The BSPS dilemma for steelworkers is clearly difficult with very little time to consider options and make a wise decision which will affect them for the rest of their lives.

There’s a whole team of willing voluntary professional advisers trying to provide some guidance to help people avoid making the wrong decision. This team includes eminent pensions experts including Henry Tapper (The Pension Ploughman), Al Rush, Darren Cooke and many more.

I’d like to contribute to this excellent initiative to help the scheme members – but I can’t advise how to do things right; I can only advise how not to do things wrong.

Henry Tapper, Al Rush and Darren Cooke – plus other qualified, licensed advisers generously giving their time to help the BSPS members – will give sound guidance as to the right decision to make. The Pensions Advisory Service will also help.

Here are some pointers from me – someone who represents hundreds of victims of pensions scams and has seen all the tricks, lies, false promises and smoke/mirrors in the pension scamming business.
1. Check that a proper adviser is licensed – in other words: regulated. You can check this out on the FCA register. Here is an example: check out Darren Cooke’s firm, Red Circle. You will see that his firm is regulated (or licensed by the FCA – Financial Conduct Authority) to carry out personal pension and stakeholder pension advice. Remember, unregulated means SNAKE OIL SALESMAN. And beware the “introducer” – which is another word for snake oil salesman. If you find the so-called adviser is not regulated – run like hell!
2. Beware “free” financial advice. Go to Tesco and ask if they have any free milk. Go to the Post Office and ask if there are any free stamps. Go to an accountant and ask if he will do your accounts for free. Go to your local car dealer and ask if there are any free cars. There ain’t no such thing as free. Everything has to be paid for – but make sure that all the charges, fees, commissions etc., are openly declared. If someone promises you free financial advice – run like hell!
3. Run a mile from “get rich quick” investment schemes. Your pension has to be invested in boring, safe, traditional assets which will grow steadily and safely. If you are offered something exciting and sexy – like eucalyptus plantations; car parks; football betting; overseas property “opportunities” and truffle trees – run like hell. If you are told that your pension will get “guaranteed returns” of 8%, 10% or 12% – run like hell!
4. If you are told you can have some cash out of your pension other than your 25% tax free at age 55 – or the rest at the marginal tax rate – run like hell!
5. If you are cold called – run like hell!
Remember, you are a sitting duck – and it is open season. Also remember, the good guys like Henry Tapper, Darren Cooke and Al Rush – as well as all the other decent, honourable, ethical advisers who are volunteering their time free to help you avoid the scammers – can give you some invaluable, generic guidance. But someone who is offering to transfer your pension into another scheme is giving you advice.

So what is the difference between actual advice and general guidance? Let us take the example of a medical practitioner: you know a doctor – say a GP – at your local tennis club. You are concerned about your health in general and the fact that you are putting on weight and get breathless going upstairs. The doctor might suggest – as in suggest – that you consider going on a diet and taking some exercise, but that you also consult your GP. That is an informal and friendly (as well as well-meaning and common sense) suggestion. But it does not constitute formal advice. A specialist would look for deeper issues such as blood pressure, signs of diabetes and any other underlying conditions to be investigated – and would prescribe specific treatment.

If all else fails, drop me an email and I will try to help: angiebrooks@pension-life.com – but meanwhile, please buy some good running shoes!

Meanwhile, take a look at just a few of the schemes for which Pension Life is representing groups of victims who have lost their life savings to the same – or very similar – scammers who will inevitably be targeting you now:

Ark

Axiom UPT

Blackmore Global

Capita Oak

Continental Wealth

Fast Pensions

KJK Investments and G Loans

London Quantum

Park First

Salmon Enterprises

Trafalgar Multi-Asset Fund

Westminster
December 8, 2017