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Tag: Capita Oak

  • Pensions Regulator – Light Speed with Gleeson Bessent Trustees

    Pensions Regulator – Light Speed with Gleeson Bessent Trustees

    TPR launches first fraud prosecution

    I am not often left speechless, but in this case all I can say is:

    WOW!

    The Pensions Regulator announced on 11th December 2018 that it is to launch its first fraud case – against Roger Bessent of Gleeson Bessent Trustees in the matter of the Focusplay Retirement Benefit Scheme.

    The details are below, as reported by James Glover, Senior Media Officer of the Pensions Regulator.

    But I am puzzled – I met with tPR’s Andrew Warwick Thompson nearly four years ago.  We discussed various pension scams and fraudsters who were active at the time.  And the delightful Mr. WT told me to buzz off and wind my neck in.  He said that he and his lawyers – who sat either side of him (presumably to keep him from toppling over) had it all under control.  And they didn’t need any help.  Especially from me, thank you.

    At this meeting, we mainly discussed the Capita Oak pension scam – run by XXXX XXXX and administered by Stephen Ward.  And we also talked about the other scams run by the XXXX/Ward dream team at the same time: Westminster and Regent.  The trustee for Westminster was Thames Trustees.  And Roger Bessent was the director of Thames Trustee – and he took over from ME!

    The background to this was that XXXX XXXX had appointed a lady in Dubai, Maria Orolfo of Europe Emirates Group – run by Adrian Oton – as director of two trustee firms: Imperial Trustees and Thames Trustees.  These were the trustees for the Capita Oak and Westminster scams respectively.  Orolfo had realised with horror she was the trustee for these scams and resigned – leaving the pension scheme members exposed to the danger of unauthorised payment charges if there was no trustee.

    So I became a director of both companies – Imperial and Thames.  I was removed pretty quickly by the scammers to prevent me from obtaining evidence against them.  I was replaced by a butcher called Roger Chant in Imperial, and an accountant called Roger Bessant in Thames.  Hard to say which of them was worse, to be honest.

    Anyway, the Serious Fraud Office did – eventually – wake up and start to investigate XXXX XXXX and both schemes: Capita Oak and Westminster.  This was announced in May 2017.  And now, more than 18 months later, tPR announces it is going to investigate Roger Bessent.

    I am very glad that Tinky Winky and tPR don’t do much rushing around – the last thing we want to see is a load of dizzy Teletubbies!  I just hope the trail hasn’t gone too cold in the past four years.

    Issued: Tuesday 11 December 2018

    An accountant is to appear in court charged with fraud and making employer-related investments – the first time The Pensions Regulator (TPR) has prosecuted for these offences.Roger Bessent is accused of abusing his position as the director of Gleeson Bessent Trustees Ltd, a professional pension scheme trustee, to transfer more than £200,000 of pension scheme funds into his bank account and those of companies controlled by him.The funds were transferred from the Focusplay Retirement Benefit Scheme, the sponsoring employer of which was Gleeson Bessent (Accountants and Business Advisers) Ltd where Mr Bessent was a director.Mr Bessent, 66, whose business is based at Navigation Business Village, Navigation Way, Ashton on Ribble, Preston, Lancashire, faces five counts of fraud by abuse of position and five counts of making employer related investments.He has been summonsed to appear at Preston Magistrates’ Court on 30 January 2019.

     

    Editors’ notes

    1. Fraud by abuse of position is an offence under Section 1(2)(c) of the Fraud Act 2006. It carries a maximum sentence of 10 years’ imprisonment.
    2. Making a prohibited employer-related investment is an offence under Section 40(5) of the Pensions Act 1995. It carries a maximum sentence of two years’ imprisonment.
    3. TPR is the regulator of work-based pension schemes in the UK. Our statutory objectives are: to protect members’ benefits; to reduce the risk of calls on the Pension Protection Fund (PPF); to promote, and to improve understanding of, the good administration of work-based pension schemes; to maximise employer compliance with automatic enrolment duties; and to minimise any adverse impact on the sustainable growth of an employer (in relation to the exercise of TPR’s functions under Part 3 of the Pensions Act 2004 only).
     
    December 12, 2018
  • Ombudsman upholds Capita Oak transfer complaint – sort of

    Ombudsman upholds Capita Oak transfer complaint – sort of

    A victim of the Capita Oak pension scam has had his Pensions Ombudsman’s complaint upheld in part ONLY.  His ceding trustee, JLT Benefits Solutions Limited (JLT), has been ordered to pay compensation but has not been held responsible for his loss.

    When my children were young, I always tried to treat them all equally.  They all had the same bedtime; were taught the same standards of behaviour and manners; were given the same food (and expected to eat it all – even the green bits!); and received the same standard of education.  And surely this is how our society should operate?  Fairly, equally and inclusively.
    But when our noble Pensions Ombudsman finds one negligent ceding pension provider guilty of carelessly handing over a pension fund to a scam and orders that provider to reinstate the fund in full, but then lets another provider off the hook for doing exactly the same thing, you have to ask whether the Ombudsman is doing his job properly.
    Let us compare the two cases:
    LONDON QUANTUM
    1. The ceding provider – the Police Authority – did not check whether it was handing over the member’s pension to a scam
    2. The receiving scheme was an occupational scheme
    3. The occupational scheme’s sponsoring employer did not trade or employ anybody
    4. The member was not employed by the scheme’s sponsoring employer
    5. The assets were unregulated, high-risk, illiquid and speculative and paid substantial commissions to the scammers
    6. The transfer administration was carried out by Stephen Ward
    CAPITA OAK
    1. The ceding provider – JLT Benefits Solutions – did not check whether it was handing over the member’s pension to a scam
    2. The receiving scheme was an occupational scheme
    3. The occupational scheme’s sponsoring employer did not trade or employ anybody
    4. The member was not employed by the scheme’s sponsoring employer
    5. The assets were unregulated, high-risk, illiquid and speculative and paid substantial commissions to the scammers
    6. The transfer administration was carried out by Stephen Ward
    A London Quantum victim complained to the Pensions Ombudsman and his ceding provider was ordered to reinstate his pension in full.
    A Capita Oak victim complained to the Pensions Ombudsman and his ceding provider was not ordered to reinstate his pension in full.
    Both victims were given £1,000 as compensation for the distress suffered.  In the case of the London Quantum victim, that worked out as 55 pence a day for worrying himself sick about losing his pension; in the case of the Capita Oak victim, that worked out at 39 pence a day for worrying himself sick about losing his pension.
    The biggest difference between the two cases, however, is that in the London Quantum case, the sponsoring employer – London Quantum – did actually exist and was on the Companies House register.  Whereas, the sponsoring employer for Capita Oak was a non-existent company called R. P. Medplant in Cyprus.
    So, let’s take a look at how and why the Pensions Ombudsman failed to uphold the Capita Oak victim’s complaint in full.  And ask ourselves whether our Ombudsman is perhaps as useless as our regulators.
    Mr N complained that JLT failed to undertake adequate due diligence on the Capita Oak Pension Scheme before transferring his pension. However, the ombudsman has ruled that JLT cannot be held responsible for the transfer as Capita Oak was registered with HMRC and they followed the official protocol in the transfer.  But then the London Quantum scheme was also registered with HMRC – so there was no difference.

    This leaves the unanswered question:

    WHO IS TO BLAME??

    The scammers?

    The law?

    The Pensions Regulator?

    The FCA?

    The Pensions Ombudsman?

    HMRC?

    Stephen Ward?

    Many other victims are sitting in the wings waiting for the answer, whilst they struggle with the situation they have been left with: a decimated pension fund and little – if any – chance of recovery.

    Here are the details from the Ombudsman’s determination on Mr N, a victim of the Capita Oak pension scam.

    Ombudsman’s Determination Applicant Mr N Scheme G4S Pension Scheme (Group 4 Section) (the Scheme) Respondents G4S Trustees Limited (the Trustee) JLT Benefits Solutions Limited(JLT) – Outcome
    1. Mr N’s complaint against JLT is partly upheld, but there is a part of the complaint I do not agree with.  To put matters right, for the part that is upheld, JLT should pay Mr N £1,000 for the very significant distress and inconvenience caused.
    2. The complaint against the Trustee is not upheld.
    3. My reasons for reaching this decision are explained in more detail below.
    Complaint summary:
    4. Mr N has complained that the Trustee and JLT failed to undertake adequate due diligence on the Capita Oak Pension Scheme (Capita Oak), before transferring his pension. Had they done so, and alerted him to the risks, he says he would have canceled the transfer.
    Background information, including submissions from the parties:
    5. In November 2012, Mr N posted a question about financial matters on a website. He was aged 47 and employed.
    6. On 28 November 2012, Mr N was contacted by a business named JP Sterling Associates (JP Sterling), which claimed to be regulated. He was informed that he would be able to transfer his pension without an Independent Financial Adviser (IFA) through a legal loophole, avoiding the need to pay any commission. It would charge £1,500 for this service.
    7. JP Sterling promoted Capita Oak to Mr N and said that his pension would be invested in store pods. This would provide a minimum return of 8% a year. Mr N received promotional literature on the investment.
    8. On the basis of what JP Sterling had told him, Mr N agreed to transfer his pension.
    9. On 3 December 2012, Mr N requested a transfer quotation.
    10. On 18 December 2012, JLT, the Scheme administrator, issued a transfer pack. This included the following statement:
    “We would particularly like to recommend that you take caution if you have received a website promotion, cold – call or advert encouraging you to transfer your benefits in order to access a cash payment or loan. Legislation states that cash from pensions
    cannot be accessed before you reach age 55, and any plans that claim to provide you with a loan or cash sum from your pension before that date should be avoided. Such plans may result in you paying substantial tax charges and receiving a lower benefit in retirement. It is recommended that you take financial advice before making a decision on transferring.”
    11. On 9 January 2013, Mr N signed the Transfer Request and Discharge document, provided by JLT, instructing his benefits be transferred to Capita Oak.
    12. On 30 January 2013, JLT received the completed Transfer Request and Discharge document from Capita Oak. This included the completed Receiving Scheme Warranty, Scheme details and confirmation of HMRC registration, including Capita Oak’s Pension Scheme Tax Reference (PSTR).
    13. On the same date, JLT checked the HMRC register to establish the current status of the Capita Oak scheme, which showed that it was registered. A screen print of this was taken and added to the file.
    14. On 1 February 2013, Mr N called JLT and advised it that he had been trying to contact Capita Oak but had been unable to get through to them. JLT confirmed that it had received correspondence from Capita Oak on 30 January 2013 and that it would
    be reviewed on 13 February 2013.
    15. On 6 February 2013, JLT carried out its due diligence checks on Capita Oak. This checklist is referred to as a Trustbusting form. The checks included establishing the type of scheme Capita Oak was, and checking its scheme summary page from Pension Schemes Online, a Government website, to confirm its status.
    16. Part 3 is titled ‘Transfers to Occupational Pension Schemes’. This requires that the employer be checked on Companies House and that a screen print be taken. This point on the checklist was initialled, indicating that it was checked.
    17. Part 4 goes on to state: “If employer and /or Trustees not found on websites: Contact HMRC and obtain written confirmation that the scheme is tax approved, using 119 [emphasis in original].  Ensure copy of Warranty Form is enclosed. This check is in addition to obtaining the PSTR approval letter/screen print of scheme summary page which will have been obtained in step 1 of this checklist.
    Once written confirmation has been received from HMRC refer to Business Risk [emphasis in original] for final decision.”
    18. On 14 February 2013, The Pensions Regulator (TPR) issued an announcement (the announcement) highlighting the risks to individuals and pension schemes of pension liberation. In making the announcement, it also issued a warning leaflet aimed at members. JLT has confirmed that this document was added to its intranet page the following day.
    19. On 19 February 2013, JLT wrote to Capita Oak confirming that the transfer value would be paid within the next three working days.
    20. On 20 February 2013, JLT transferred the funds.
    21. On 21 February 2013, Mr N called JLT saying he was unable to contact Capita Oak. JLT referred him to the Capita Oak website for further information.
    22. On the same day, JLT wrote to Mr N to confirm that the transfer value of £151,277.91 had been transferred to Capita Oak.
    23. On 22 February 2013, Mr N called JLT raising “serious concerns” about Capita Oak, stating that the correspondence appeared to have been “written by a child” and he could not locate information about it on the internet. He subsequently emailed at
    9.45am requesting the transfer be put on hold until further checks were undertaken on Capita Oak. He stated: “I have very real concerns about CapitaOak [sic] as I have not been able to trace them through any website or listing anywhere. I did a check for
    them with the FSA and it came up blank. I was dealing with a company called JP Sterling who appear to be a very reputable investment broker, however I don’t want to transfer to a company that I have no knowledge of or can’t contact ever.”
    24. JLT responded to the email at 10:43 am by calling Mr N. It provided him with alternative contact details for Capita Oak.
    25. Mr N followed the call up with an email at 10:58am, stating he did not wish to proceed with the transfer unless “you”, being JLT, “find something to change my mind completely”.
    26. At 12.15pm, JLT called Mr N to explain that the transfer had already been processed. JLT informed Mr N that due diligence had been undertaken on Capita Oak and it had passed all the transfer checks. Mr N confirmed he had spoken to Capita Oak and he was due to receive full information on the scheme in the near future.
    http://webarchive.nationalarchives.gov.uk/20130402174913/http://www.thepensionsregulator.gov.uk/pension-liberation-
    fraud.aspx
    27. On 26 February 2013, Imperial Trustee Services Ltd, as trustee for the Capita Oak scheme, wrote to Mr N to acknowledge that his application had been processed.
    28. On the same day, JLT called Mr N to query the position of Capita Oak. The call note records that: “The member stated that as far as he was concerned the transfer had gone through and there is no further action from JLT unless he contacted us further.”
    29. Mr N subsequently raised a complaint about the transfer. It is unclear how that progressed, but it was not resolved, and the matter was accepted by this Office for investigation.
    Adjudicator’s Opinion
    30. Mr N’s complaint was considered by one of the Pensions Ombudsman Adjudicators who concluded that further action was required by JLT, but none was required by the Trustee.
    31. The Adjudicator’s findings are summarised briefly below:
    • The Adjudicator acknowledged that at the time JLT undertook the due diligence on Capita Oak, the Regulator’s announcement had not been made and therefore was during a period of lower industry standards.
    • However, JLT’s internal processes were more stringent than the industry standards of the time, and the transfer should be viewed in the context of those processes when deciding whether its actions were correct.
    • The Adjudicator considered that JLT’s process in relation to checking the legitimacy of Capita Oak was not accurately followed. He highlighted that there was no apparent way JLT could have made a check of the sponsoring employer at Companies House, as the name of the sponsoring employer had not been communicated to it in the transfer paperwork; and, as a Cypriot company, it would
    not have been registered at Companies House anyway.
    • In the absence of a record at Companies House, the Adjudicator took the view that, when following the guidance on the Trustbusting checklist, it was necessary for JLT to have contacted HMRC to obtain written confirmation that Capita Oak was tax approved, and to then refer the matter to “Business Risk for final decision.”
    • JLT had highlighted that a HMRC screen print had been taken showing Capita Oak’s status, but the Adjudicator concluded that despite that, the guidance still required an extra step to be taken, by contacting HMRC in writing, and it had not been.
    •The Adjudicator concluded this was maladministration and went on to consider whether, but for that maladministration, would JLT have refused the transfer or provided Mr N with further warnings which might have caused him to cancel it.
    • The Adjudicator noted that there was likely to have been a delay caused by this additional step, and said that in some instances HMRC might issue a letter stating that it was unable to confirm the current status of the scheme enquired about.  Such a letter might have resulted in a different outcome. However, the Adjudicator’s understanding was that concerns over Capita Oak did not arise until sometime after March 2013, and so there was no reason to think that had HMRC been contacted, JLT would have received any warning letter or reason for concern. The outcome of the due diligence would have been no different.
    • Mr N did request, within 48 of the transfer being completed, that it be canceled.  The question was therefore whether, had JLT taken longer to process the transfer, Mr N would have canceled the transfer in time. Was it JLT’s fault that he was given insufficient time to cancel his instruction? The Adjudicator concluded that this was not sufficient in terms of causation and foreseeability to make JLT legally liable for the losses Mr N had suffered. JLT was following Mr N’s instruction to transfer and, in the absence of any grounds to refuse it, was required by legislation to do so.
    • The Adjudicator considered that JLT had provided Mr N with warnings about website promotions and cold – calls, both features of his transfer , in excess of what was typical industry practice at the time . It had also recommended he seek advice from an IFA and Mr N had still gone ahead with the transfer despite being aware that it apparently used a “legal loophole” to avoid IFAs.
    • Mr N had spoken with JLT prior to the transfer, but the Adjudicator considered that from Mr N’s description of the call, it had not acted in error when discussing the transfer.
    • Following the transfer, on 22 February 2013, Mr N had been given inconsistent information giving rise to the expectation that the transfer could be cancelled. However, by this point the transfer had completed and there was no way to reverse it. Whilst this information was incorrect, it had not led to Mr N’s financial loss.
    • The Adjudicator could see no fault on the part of the Trustee.
    • For JLT’s procedural failure, in failing to contact HMRC, and for the inconsistent information, provided after the transfer had completed, the Adjudicator recommended JLT pay Mr N £1,000.
    32. Neither Mr N nor JLT accepted the Adjudicator’s Opinion and the complaint was passed to me to consider. Both parties provided
    further comments which do not change the outcome. I agree with the Adjudicator’s Opinion and I will therefore only respond to the key points for completeness.
    Ombudsman’s decision
    33. Mr N has repeated the content of a series of conversations he had with JLT over the course of February 2013, highlighting that he asked for the transfer to be stopped as he was concerned with the quality of Capita Oak’s communication. He says he was told by JLT that Capita Oak was legitimate and he was reassured by this. He points to the fact that the Adjudicator has shown that JLT failed to undertake the correct checks before transferring, and he says this is negligence, not simply maladministration.
    34. I have reviewed the call notes between Mr N and JLT. There was a call prior to the funds being transferred, however Mr N did not request the transfer be put on hold or rescind the request at that point.  The note shows that JLT informed him that correspondence had been received and it would be progressing the transfer approximately two weeks later. This was prior to the due diligence being carried out. Mr N has not suggested that this call note misrepresents the conversation, and on the basis of the note I see no reason for JLT to have halted the process.
    35. Mr N did request, on 22 February 2013, that the transfer be put on hold. However, by this time the transfer had already completed and could not be reversed by JLT. JLT gave Mr N the false expectation that the transfer could be stopped, but otherwise any reassurance it provided about Capita Oak was just relaying the fact that Capita Oak had passed the due diligence checks.
    36. Having reviewed JLT’s due diligence process, I agree with the Adjudicator that it cannot have been followed in its entirety. In the absence of a Companies House record for the employer, JLT should have to written to HMRC to enquire about Capita Oak and this did not happen. Subsequently, the transfer should also have been scrutinised by Business Risk.
    37. However, despite this failure to follow its internal process, at the time HMRC had not flagged any concerns regarding Capita Oak, and so there would have been no reason for JLT to legitimately decline the transfer. The additional process may have delayed the transfer, and this might, fortuitously, have given Mr N the opportunity to cancel the transfer by extending the time Mr N had to think about his transfer.
    38. However, as Mr N had the opportunity to cancel the transfer at any time between 9 January and 20 February 2013, the date the transfer was made, it was not reasonably foreseeable by JLT that Mr N would try to do so on 22 February. Also, had JLT taken the extra step of contacting HMRC, the positive confirmation, which would most likely have been received at that time, is likely to have
    led Mr N to continue rather than cancel the transfer. I do not find that Mr N has a claim for negligence because JLT did not cause the loss. It was transferring to a scheme that, at the time, was properly registered and Mr N had exercised his statutory right to transfer by signing the statutory discharge form.
    40. Mr N argues that had he not been reassured by JLT that Capita Oak was genuine, then he would have complained earlier. But there was no reason for JLT to have suggested there were concerns with Capita Oak, and the same would have been true if it had contacted HMRC.
    41. I note that during a conversation with JLT on 26 February 2013, following the transfer, Mr N confirmed that he was in contact with “the broker” and he did not expect further action from JLT at that time. It was not until sometime later that Mr N raised a
    complaint with JLT. This implies that in February 2013, or shortly thereafter, Mr N was reassured by the broker, or Capita Oak, as to its legitimacy, otherwise he would have complained at that time. Therefore, even if he had been given the opportunity to place the transfer on hold or cancel it, ultimately the broker would more likely than not have reassured Mr N of the security of the transfer and it would have gone ahead despite his reservations.
    42. I have great sympathy with the position in which Mr N finds himself. It may be that in the long run some of the value of his pension is recovered, but that is uncertain. This was a significant portion of Mr N’s pension provision and I have no doubt that this matter is extremely distressing for him. However, JLT did recommend he seek independent financial advice and warn him of the risks of pension cold calls. Mr N was recommended the transfer by JP Sterling on the basis that it circumvented the need for an independent financial adviser. In these circumstances, I cannot attribute Mr N’s loss to JLT because of a procedural oversight which would not have flagged any concerns over the transfer, particularly where that procedure already exceeded the standards at the time.
    43. JLT has disputed the level of distress and inconvenience award recommended by the Adjudicator, arguing that these circumstances are different from those of the case the Adjudicator had highlighted. In particular, JLT point to the fact that it provided relevant warnings to Mr N; but, in PO-10365, the scheme provided no warnings to the transferring member. I acknowledge the difference JLT has highlighted, but the point remains that it did not properly follow its established process when carrying out Mr N’s transfer. Whilst it cannot be held responsible for his loss, it is very distressing for Mr N to know that steps were missed.
    44.  Additionally, JLT provided Mr N with the false understanding that the transfer could be put on hold, when this was not possible. In a typical complaint involving an administrative error, I would not normally award £1,000.  However, there was more than one administrative error and the risks were high. I would have expected JLT to have exercised more care and accuracy in the way the transfer was carried out and the information conveyed to the member.
    45. Therefore, I uphold Mr N’s complaint against JLT in part.
    Directions
    46.  Within 21 days of the date of this Determination, JLT shall pay £1,000 to Mr N for the very significant distress he has suffered.
    Anthony Arter
    Pension Ombudsman
    December 12, 2018
  • GERARD ASSOCIATES – FCA-REGULATED SCAMMING

    GERARD ASSOCIATES – FCA-REGULATED SCAMMING

    Gerard Associates – an FCA-regulated firm – makes the case for regulating the “profession” of scamming. 

    One of Gerard Associates’ victims, a Police officer, complained to the Financial Ombudsman.  He had been scammed out of his Police pension and into the London Quantum pension scam by Gary Barlow of Gerard Associates and Stephen Ward of Dorrixo Alliance and Premier Pension Solutions.  But, as scamming is not a regulated activity, the complaint could not be investigated.

    Gerard Associates’ website claims: “We specialise in Savings and Investments, Pensions, Life Assurance and Income Protection.”  But omits to mention pension scams and rubbish investments.

    It goes on to explain why Gerard Associates should be chosen as an advisory firm:

    “Everyone’s financial situation has different individual needs and requirements. As an impartial financial expert we are well placed to provide our clients with a bespoke service that works in your best interests, not ours.”

    But who exactly are Gerard Associates’ clients?  The firm was working for Stephen Ward and his Premier Pension Solutions firm back in 2010, introducing victims to the Ark pension liberation scam.  Perhaps the firm – led by Gary Barlow – was busy with non-scamming activities between 2011 and 2014.  Or perhaps not.  What we do know for sure is that in 2014, Gerard Associates plunged into Stephen Ward’s final scam: London Quantum.

    Gary Barlow should have known the simple fact that everyone’s needs and requirements are actually identical: i.e. they need to avoid being scammed.  And yet Barlow was happy to support Stephen Ward in his quest to scam further victims out of their pensions and act as a sort of financial adviser who claimed he didn’t give any financial advice.

    Gerard Associates’ website goes on to claim:

    “Whether you want a professional to manage your investment portfolio and free you up to enjoy your wealth, or you are simply looking for a little guidance, we are able to help.”  

    I wonder if victims would really want a “professional” who cons people out of their pensions – including final salary pensions.  And how do people “enjoy” their wealth when it is invested in all sorts of high-risk, illiquid, speculative crap that only serves to pay the scammers high commissions?  The only “help” potential victims of Gerard Associates need is to avoid this firm like the plague.  Nearly 100 people lost their pensions to the London Quantum scheme – facilitated by this rogue firm.  Correction, this rogue FCA-regulated firm.

    “By letting us look after your financial planning needs, you pass the responsibility onto us and save yourself valuable time, sometimes money.“

    I think the London Quantum victims would argue with this “promise”.  Far from saving them valuable time and money, these victims spent at least three years agonising over the loss of their pensions and waiting for news that the Pensions Ombudsman would uphold their complaints that their ceding providers should be brought to justice for negligently transferring their life savings to a scam.

    “This is because your impartial financial adviser will have access to a wider range of products than you get from high street banks or comparison websites.”

    What Gerard Associates actually means is that the “wider range of products” includes the usual load of rubbish that pays the scammers high commissions (such as eucalyptus plantations, forex trading, Dolphin Trust unsecured loan notes, collapsible flats in Cape Verde, and mythical Middle Eastern business centres).  The reason that high street banks don’t offer such toxic investments, is that they don’t want their customers to be financially ruined.  Obviously, Gerard Associates has no such reservations.

    In August 2014, a Police Constable (Mr. N) from the North East of England received a phone call from an unregulated “introducer” called Viva Costa International, and was referred to Gerard Associates who advised him to transfer his Police (final salary) pension to the London Quantum Retirement Benefit Scheme.  This was an occupational scheme – and Mr. N had no employment relationship with London Quantum (which is now in liquidation – surprise surprise!).

    The London Quantum scheme was administered by Stephen Ward’s company, Dorrixo Alliance (UK) Limited – and Dorrixo was also the trustee. Gerard Associates obtained a cash equivalent transfer value (CETV) quotation from the providers of Mr. N’s existing pension fund – the Police Authority.  At this point, Gary Barlow of Gerard Associates should have advised Mr. N – and all the other victims – that under no circumstances should they transfer their valuable and safe existing pensions to the London Quantum scam as they would be bound to lose most – if not all – of their funds.  But, of course, Barlow was paid handsomely by Ward to help scam Mr. N and all the other victims.  And Barlow earned £5,000 out of Mr. N’s transfer alone.  And with almost one hundred victims in total, Barlow would probably have earned close to half a million quid out of the London Quantum scam.

    On 26 June 2014, Mr. N met Gerard Associates to discuss his pension transfer, and signed an agreement to transfer his benefits from the Police pension scheme to London Quantum. At no point did Gary Barlow of Gerard Associates warn Mr. N that Stephen Ward, the trustee, was a known scammer with a history of scamming hundreds – probably thousands – of victims out of their pensions.

    On 15 August 2014 – long after the Pensions Regulator’s pension fraud warning (Scorpion) was published (Valentine’s Day in 2013), Mr. N received confirmation that £112,077.66 had been transferred from the Police Scheme to London Quantum. Gerard took their fee of  £5,000 for “advising” on this scam out of the transfer payment.

    In 2015, Mr. N looked again at his London Quantum documents, and was realised he’d signed up to a high-risk investment as a “sophisticated” investor. He scratched his head and wondered what a “sophisticated investor” was.  Alarm bells started ringing loudly in his head – especially as news of Stephen Ward’s involvement in the Capita Oak pension scam started to get into the public domain.

    On 18 June 2015, Dalriada Trustees Limited (Dalriada) was appointed by the Pensions Regulator as an independent trustee to London Quantum. Dalriada then published the list of assets in the London Quantum scheme and Mr. N realised the true horror of where his pension had been invested:

    ————————————————————————————————————————————————————–

    Quantum PYX Managed FX Fund

    A high-risk forex-trading fund.  Fun for currency traders to lose a bit of pocket money during their coffee break, but totally unsuitable for a pension fund.  The fund sponsor predicted a return of 12%-15% per annum – an astonishing amount by any standards.  But in practice, the fund – of course – performed badly and lost a lot of money.

    Dolphin Trust GmbH

    Stephen Ward bought nine five-year-term loan notes with no early exit options. Dolphin is a German outfit that claims to buy and renovate derelict listed German property.  The lenders are promised rates of return ranging from 12% to 13.8% per annum.  This is an unregulated investment and is high risk in nature, with no guarantee that the capital and interest will ever be fully repaid.  Also, there has never been an independent audit – so there is no proof that the properties even exist or that this is anything other than a Ponzi scheme.

    London Quantum One Limited

    This was a social media app called VIP Greetings providing personalised messages and celebrity endorsements. Another long-term, high-risk, speculative, unsecured investment with no early exit options and no secondary market for selling it on.  When Dalriada took it over, they suspected it was actually worthless.

    Park First Glasgow Limited

    Between 2014 and 2015 Stephen Ward invested in 17 car parking spaces in a car park near Glasgow Airport.  An entirely unsuitable investment for pension schemes, although jolly handy for people flying from Glasgow Airport and wanting to guarantee the best parking spot.

    Mallets Solicitors Limited

    On 20 August 2013, Stephen Ward invested in an unsecured loan note issued by the law firm Malletts Solicitors Limited.  The loan note had an investment period of 6 years with an obligation for the note holder to redeem 25% of the note per annum after year 2. No early exit options existed.  The loan note purported to return 8% per annum payable half yearly.

    Malletts Solicitors Limited went in liquidation on 11 November 2016. Dalriada submitted a proof of debt respect of the loan note but the fact it has gone into liquidation suggests the money is gone.  Before Malletts had gone pop, it had been representing one of the Ark victims who had been scammed by Stephen Ward.  Read into that what you will!

    Colonial Capital Group Plc

    On 31 January 2015, Stephen Ward invested London Quantum funds in a three-year corporate bond with Colonial Capital Group Plc. Colonial operates in the distressed US social housing market and has issued a number of bonds.

    The corporate bond is for a period of three years. No early exit options exist.  The bond has a fixed return of 12% per annum. Interest will be rolled forward and paid at the end of the three-year investment period.

    This is an unregulated investment which is illiquid and high risk.  Colonial Capital Group Plc was then placed into administration on 8 March 2017. So all the money is probably lost.

    The Resort Group

    There’s a reason why Cape Verde properties are called “flats”!   Investors do not own the land nor do they have a charge over it. An investor has simply a right to share in any profit generated from the occupation of the properties.  This is an unregulated investment scheme which is illiquid and way too risky for any pension scheme.

    The Reforestation Group Limited

    This scheme claimed to have purchased ‘land rights’ to 21 plots of Brazilian farmland for growing eucalyptus trees. The investment term is 21 years – covering three cycles of seven years, which is the projected time period to grow and harvest the trees. The investment purportedly offers returns of 28-32% compounded over each seven-year cycle.  

    The crop cycle of a eucalyptus tree is seven years. With the investment being made in 2014, the first return on this would not be realised until around 2021.  And that is assuming the trees didn’t die – or that the land existed at all.

    ABC Alpha Business Centres UK Limited

    This was an investment consisting of 11 four-year bonds bought by Stephen Ward between 27 October 2014 and 15 May 2015.  ABC Alpha Business Centres UK Limited and ABC Alpha Business Centres VI UK Limited went into administration on 20 January 2017.

    The Bonds are corporate bonds in ANC UK Limited. ABC UK Limited is the capital raising vehicle for the investments.  ABC UK Limited is wholly owned by a United Arab Emirates (UAE) entity, ABC LLC.  ABC LLC owns and operates the investment portfolio of real estate investments.

    ABC LLC is wholly owned by another UAE entity, the Property Store. The Property Store purportedly provides security of 200% of the value of the invested funds.  If you’ve followed that little lot, you’ve probably concluded it should have been avoided at all costs.

    Best Asset Management Ltd

    This unregulated investment consists of a “lease” on seven car parking spaces in a new office development in Dubai taken out between 1 October 2014 and 17 April 2015.  Under the Operator’s Agreement, there is five years’ worth of s0-called guaranteed rental income.  The car parking spaces are located at Churchill Towers, Dubai – where NCP Ltd owns the freehold.  Best Asset Management should probably be renamed “Worst Asset Mismanagement”.

    ————————————————————————————————————————————————————–

    Mr. N complained about Gary Barlow’s advisory firm Gerard Associates to the Financial Ombudsman Service. In January 2016, this complaint was rejected as being outside the Financial Ombudsman Service’s jurisdiction on the basis that no regulated activity had been carried out by Gerard.  Gerard’s position was that it had not given advice to Mr. N.  And, of course, scamming isn’t a regulated activity so the ombudsman can’t investigate it.

    And this is why I maintain that scamming should be a regulated activity – so that the Financial Ombudsman Service can deal with such complaints.

    In 2016, Mr. N complained to the Pensions Ombudsman about the Police Authority’s negligence in allowing the transfer to an obvious scam run by a well-known scammer (Stephen Ward).  Back in 2014, Gerard Associates had conned Mr. N into signing a declaration that he was a sophisticated investor and was looking for a high-risk investment strategy. He was told that Gerard Associates – an FCA-registered company – would find the best pension for him.  Of course, what he didn’t know was that Gerard Associates had only one solution: the London Quantum scam run by Stephen Ward.  And, naturally, Gerard Associates was certainly not “independent” as it was only out for the eye-watering commissions it would earn from scamming victims such as a serving police officer out of his pension.

    International Investment interview with Pension Life´s Angie Brooks

     

    December 12, 2018
  • CAPITA OAK PENSION SCAM AND THURLSTONE LOANS

    CAPITA OAK PENSION SCAM AND THURLSTONE LOANS

    Capita Oak – the perfect scam

    This is a letter I wrote to XXXX XXXX´s solicitor back in April 2017.  It was ignored.  Of course.

    Dear Thurlstone, (XXXX XXXX)

    I am now preparing the appeals for the Capita Oak victims against the tax assessments issued by HMRC in respect of the 5% Thurlstone “loans” which are being treated as unauthorised payments.  What I require is full disclosure as to the exact source of the funds for these payments.
    CAPITA OAK PENSION SCAM AND THURLSTONE LOANS
    HMRC Protected Assessment – tax demand for the Thurlstone loans
     
    My problem is that there is scant evidence along the audit trail to be able to prove exactly where the loans came from and I need to be able to establish that the money did not come from the pension funds – if possible.  Indeed, from the point of transfer, pretty much every penny is accounted for as the money passed through the various scammers’ hands from the ceding providers to Metis Law solicitors.  Along the way, some fees were paid out as summarised by the Insolvency Service:
     
     

    “£100,873 paid to Metis Law on behalf of Hawkshead Properties in lieu of fees due to NATIONWIDE BENEFIT CONSULTANTS                                                                        

    £86,632 paid to Alan Fowler 


    £83,485 Paid to WJP Admin and Copeland South for Bill Perkins

     

    £73,811 paid to KE Media Services Ltd for Jason Holmes                                                                                             

    No fee payments were made direct to NATIONWIDE BENEFIT CONSULTANTS but in addition to the payment made to Metis Law on behalf of Hawkshead Properties a payment of £100,558 was made from funds held by Metis Law to THURLSTONE on the instruction of Karl Dunlop who told me who the person was behind Thurlstone (XXXX XXXX) – the “Ginger Scammer”).”

     
    So, we know that the individual behind Thurlstone – XXXX XXXX – received £100,873 plus £100,558 i.e. £201,431 direct from the pension transfers via Hawkshead and Thurlstone.  But did he use any part of that money to pay the 5% loans to the victims?
     
     

    The £10.8 million worth of pension transfers is fully accounted for on its way from the victims’ original pensions through the hands of the scammers.  We now have hard evidence as to who was operating the Thurlstone loans – as had been stated by Karl Dunlop when interviewed by Len Fenton of the Insolvency Service.  So where did the loan money come from?

     

    It would be much appreciated if the operators of Thurlstone would provide this information as it is required for the tax appeals immediately, and will also be needed for the Tax Tribunals in due course.  As the individual behind Thurlstone also runs a company called Nationwide Tax Administration, I have no doubt he will appreciate the seriousness and urgency of this matter for which he is responsible:

    https://beta.companieshouse.gov.uk/officers/4fJ6N2QgENAewXq8q2BPVbH823s/appointments

     

    I have asked whether the individual behind Thurlstone (XXXX XXXX) could repay the £201,431 he received from the Capita Oak scam so that it can be used for the benefit of the victims.  Undoubtedly, this “gentleman” will appreciate the distress the 300 victims are experiencing now that on top of fearing the total loss of their pensions, they have just received tax demands from HMRC because of the Thurlstone loans.

     

    There isn’t time to tip-toe around this issue as we only have about three weeks left to appeal the tax assessments.  It would be really good to see some degree of honesty, honour and decency after all the nefarious conduct of the past four years in the Capita Oak matter.

    November 12, 2018
  • Stephen Ward – The Death of Trust

    Stephen Ward – The Death of Trust

    Pension Life Blog - Stephen Ward - The Death of Trust - Premier Pension solutions - Ward - London Quantum - Stephen WardStephen Ward of Premier Pension Solutions SL and Premier Pension Transfers Ltd and Dorrixo Alliance Ltd has now been banned from acting as a pension trustee by the Pensions Regulator.

    Ward’s sidekick Anthony Salih – based at the notorious 31 Memorial Road, Worsley address – has been similarly banned.  The ban has been in relation to the London Quantum pension scam operated by the pair in 2014/15.

    London Quantum Pension ScamTPR has been neither coy nor shy in its published determination against Ward and Salih – and has openly called the London Quantum pension scheme, and the risky investments which Ward made, a “scam”.

    But to any reasonable person’s mind, tPR’s determination in relation to Ward and London Quantum raises more questions than it answers.  In fact, I would go even further and say that HMRC’s and tPR’s incompetence – as well as Dalriada Trustees‘ own failings – should be examined in parallel with Ward’s multiple frauds.

    Because, make no mistake, London Quantum was only one of many.

    It all started long before the Ark Pensions scam.  Ward set out his stall transferring pensions to New Zealand and liberating 100% “tax free”.  He boasted in the local Costa Blanca press that he had “helped” thousands of clients liberate their pensions (legally).  Of course, this may have been free of tax in New Zealand, but when the Spanish tax authorities catch up with these clients, there will be a very expensive disaster.

    It is extremely worrying that IVCM – a “phoenix” of the Brooklands disaster – is also offering the same New Zealand liberation facility today.  It always worries me when firms fail to learn the lessons of past scams and expose unsuspecting victims to the same catastrophes that past scammers orchestrated.  Add to this the fact that IVCM is regulated out of Gibraltar – the jurisdiction of choice for scammers such as XXXX XXXX and STM Fidecs – and I think it is well worth giving IVCM a very wide berth.

    Prior to 2010, Ward was a tied agent of Inter Alliance – a company based in Cyprus which had an insurance license.  For Inter Alliance in Cyprus, Ward successfully created the illusion that this gave his company Premier Pension Solutions some sort of license.  But, in reality, it did not – as the Cyprus license was only for Inter Alliance and not for any other entity.  Plus tied agents were (and still are) illegal in Spain.

    As a sideline, Ward was flogging EEA Life Settlements as he had discovered the delights of making huge commissions out of dodgy, risky, illiquid investments to his unsuspecting victims.  In 2010, Ward was working closely with Concept Trustees in Guernsey – run by Roger Berry.  Initially happy to see Concept Trustees’ QROPS members have 100% of their pensions invested by Ward in EEA, Berry eventually realised that Ward’s firm was not regulated as it had been dumped by Inter Alliance.  Of course, even before it had been dumped, Premier Pension Solutions wasn’t regulated anyway.  But Concept Trustees was too stupid to realise that.

    Concept then wrote to all the members who were clients of Ward’s Premier Pension Solutions and warned them that Ward’s firm was neither regulated nor had any professional indemnity insurance cover.  Berry claimed he would not be accepting any further investment instructions from Ward, but this was basically just a load of hot air (aka lying) as he continued to accept investment instructions into EEA by Ward.

    In September 2010, Premier Pension Solutions was appointed as a tied agent of AES International – a firm based in London and Dubai.  The agency agreement covered PPS for investment and insurance business – but not pension transfer business.  Ward’s PPS letterheaded paper claimed that it was a “partner” of AES and that it was regulated by the DGS (Spanish insurance regulator) and CNMV (Spanish investment regulator).  PPS also became a member of FEIFA – the Federation of European Independent Financial Advisers (although he was later dumped by them).  You can understand why so many victims thought that PPS was a bona fide advisory firm.

    Pension Life Blog - Stephen Ward - The Death of Trust - Premier Pension solutions - Ward - London Quantum - Stephen WardThen came the first of Ward’s major pension scams: Ark.  It is worth looking at the history of Ark because this sets the scene for how nearly 500 victims came to lose their pensions and face tax liabilities – as well as the dozens of further scams operated by Ward (including London Quantum).

    A famous footballer and his mate – a football club owner – bought a plot of land in Larnaca in Cyprus with a view to turning it into a golf resort.  They paid £1.1 million for the property, but then realised it wasn’t big enough for a whole golf course (neither of them was bright enough to be able to count up to 18) and so they tried to find some other investors.  The chumps they tried to con into buying more land adjacent to the original plot either couldn’t come up with the money or were frightened off such a high-risk, illiquid investment.

    So the sporty pair went to see the footballer’s accountant – Andrew Isles of Isles and Storer (now owned by LB Group).  Isles soothed the sporty pair’s worries by telling them that securing more investors was simple: just start a pension fund!  He introduced them to what he called “two leading pension experts”: Craig Tweedley and Stephen Ward.  Tweedley was already operating the KJK Investments/G Loans pension liberation scam (later to be placed in the hands of Dalriada Trustees by the Pensions Regulator) and Ward was a highly-qualified pensions expert, examiner and author.

    The rest is history as nearly 500 victims lost their pensions to the Ark scam.  But the sporty pair did very nicely – they sold the land in Cyprus to the Ark scheme for £4 million and pocketed the profit.  The footballer tried to hide the money in Dubai but got caught and turned Queens Evidence.  He and the other original investor (the football club owner) fell out and they ended up in court against each other – with the footballer triumphing.  Andrew Isles also did very nicely as he sold introductions to a number of his clients and earned fat commissions in doing so.

    As Ark unfolded – between mid 2010 and mid 2011 – Ward initially acted as an introducer.  There were various introducers – many recruited by Ward when he ran a series of seminars in various parts of the UK.  But Ward himself was the biggest introducer – accounting for more than a third of the whole £27 million fund and earning approaching three quarters of a million pounds in fees (the Pensions Regulator’s report of £350k was way off the mark).

    Ward and his sidekick – bent lawyer Alan Fowler of Stevens and Bolton Solicitors – acted as the controlling minds behind Ark.  The scheme documentation and the “loan” contracts were drawn up and explained by Ward and Fowler.  Of the 5% commission charged by Craig Tweedley, Ward got at least 2% plus a transfer fee.  But Ward had his eye on a much bigger proportion of the fees.  Towards the end of the life of Ark, Ward was preparing to take Ark over from Tweedley – along with an associate of his: Peter Moat (another pension crook who went on to operate the Fast Pensions scam – now also in the hands of Dalriada Trustees).  In a way, it was a shame that didn’t happen, as Tweedley did at least try to help the Ark victims, whereas Ward never lifted a finger.  In fact, he simply told the Ark victims to throw the tax demands away as “HMRC would never pursue them”.

    In February 2011, HMRC met with Tweedley and Ward to discuss the “loans” – so HMRC knew perfectly well that Ward was the main brain behind the scam.  It is, therefore, astonishing that they did nothing to stop him operating so many further pension scams.

    Ark came to a shuddering halt on 31st May 2011, when tPR appointed Dalriada Trustees and the scheme was suspended.  Dalriada went up to Yorkshire to confront Crag Tweedley and relieve him of all the evidence and files relating to the scam.  Tweedley told Dalriada that all the records were held down at Ward’s Manchester office at 31, Memorial Road and he drove down to collect them from Anthony Salih.  He arrived to find Salih removing all the Premier Pension Solutions fee agreements on the instructions of Ward (he managed to shred most of them – but did missed a few which I now have).

    Pension Life Blog - Stephen Ward - The Death of Trust - Premier Pension solutions - Ward - London Quantum - Stephen WardAfter Ark, Ward went on to run the Evergreen Retirement Benefits QROPS scam with accompanying 50% “loans” and a further 300 victims lost £10 million worth of pensions.  HMRC removed Evergreen from the QROPS list when they realised it was a liberation scam and Ward fell back on two more UK-based, bogus occupational schemes: Southlands and Headforte.  Plus, he registered a number of new schemes – including Capita Oak.

    The Capita Oak scheme was another bogus occupational scheme registered by Ward with a fictitious sponsoring employer: RP Medplant (Cyprus).  There is, however, a firm called RP Med Plant in Cyprus.  The Capita Oak trust deed was written by Ward’s bent lawyer Alan Fowler.  Ward took responsibility for the transfer administration – transferring valuable personal and final salary occupational pensions into this scam – in the full knowledge that he was condemning hundreds of victims to certain financial ruin and poverty in retirement.  Capita Oak is now also in the hands of Dalriada Trustees.

    Other pension scams that Ward was operating – in addition to Southlands and Headforte – from 2012 onwards included Feldspar, Hammerley, Meribel,  Halkin, Randwick, Bollington Wood and Westminster.  And, of course, Dorrixo Alliance which was the trustee for many of these scams.  Capita Oak and Westminster are both under investigation by the Serious Fraud Office.

    Pension Life Blog - Stephen Ward - The Death of Trust - Premier Pension solutions - Ward - London Quantum - Stephen Ward
    How much more evidence do they need?

    In May 2014, HMRC was given evidence of all of Ward’s various scams – including Dorrixo Alliance.  They were also given detailed testimony by me and a number of victims of what Ward had been up to in the pension liberation fraud industry since Ark.  It would have been very easy for HMRC to look up to see what other pension schemes Dorrixo was trustee to.  Had they done this, they would have seen that Dorrixo was the trustee for the London Quantum scheme.  If HMRC had taken any action, they could have prevented Mr. N – a serving police officer – and 96 other victims from losing their pensions to Ward and his various dodgy, inappropriate investments (including loans to Dolphin Trust).

    If we add to the above catalogue of scams the Continental Wealth Management scam – 1,000 victims facing the loss of £100 million worth of life savings – Ward has been responsible for the destruction of thousands of people’s pensions this past eight years.  Plus several suicides and deaths from stress-related medical conditions.

    SERIOUS QUESTIONS ARISING FROM THE PENSIONS REGULATOR’S DETERMINATION RE:

    Mr Stephen Alexander Ward – The Pensions Regulator case ref: C46205159

    Ward was a director of Dorrixo from 13 October 2011 to 28 April 2015. A company called Quantum Investment Management Solutions LLP (“QIMS”) has at all material times been the sole sponsoring employer of the Scheme. Dorrixo became the sole trustee of the Scheme on 19 April 2014. Dorrixo is also recorded as being the Scheme administrator.

    HMRC AND TPR WERE GIVEN EVIDENCE OF WARD’S COMPANY, DORRIXO, IN MAY 2014.  THEY WERE ALSO GIVEN EVIDENCE OF A LARGE NUMBER OF SCAMS WARD OPERATED AFTER ARK – ALL INVOLVING LIBERATION FRAUD.  WHY WASN’T ACTION TAKEN TO PREVENT LONDON QUANTUM?  ALL 97 VICTIMS – INCLUDING A SERVING POLICE OFFICER – COULD HAVE BEEN PREVENTED.

    On 18 June 2015 the Regulator appointed Dalriada Trustees Limited (“Dalriada”) as an independent trustee to the Scheme, with exclusive powers.

    HAS ONE SINGLE PENNY EVER BEEN RETURNED TO ANY OF THE PENSION SCAMS PLACED IN THE HANDS OF DALRIADA TRUSTEES?  THERE ARE DOZENS OF THEM, AND FEW – IF ANY – OTHER INDEPENDENT TRUSTEES ARE EVER APPOINTED BY TPR.  BUT THERE SEEMS TO BE NO RECORD OF ONE SINGLE MEMBER EVER GETTING ANY RETURN FROM ANY OF THE SCHEMES IN THE PAST EIGHT YEARS – DESPITE THE MANY MILLIONS DALRIADA HAVE PAID THEMSELVES FROM THESE SCHEMES.

    Pension Life Blog - Stephen Ward - The Death of Trust - Premier Pension solutions - Ward - London Quantum - Stephen WardFollowing its appointment Dalriada discovered that there were approximately 609 files on record relating to potential new members, each at various stages of progression towards becoming a new member.

    AS THIS EVIDENCES THAT THIS SCAM COULD EASILY HAVE DWARFED ARK IN A VERY SHORT SPACE OF TIME, DON’T HMRC AND TPR RECOGNISE THAT THEIR LAZINESS AND NEGLIGENCE NEED TO BE ADDRESSED?  THEY LEARNED NOTHING FROM ARK – AND WHILE THERE ARE VALID CRITICISMS OF WARD FOR HAVING LEARNED NOTHING, HE IS JUST A COMMON SPIV WHILE HMRC AND TPR ARE SUPPOSED TO BE GOVERNMENT DEPARTMENTS WITH A RESPONSIBILITY TO PROTECT THE PUBLIC.  THE SCALE OF THIS SCAM SHOWS THESE TWO ORGANISATIONS ARE NOTHING BUT HOPELESSLY INEPT AND AMATEURISH IN THEIR APPROACH TO DILIGENCE AND PUBLIC RESPONSIBILITY.

    The Scheme was promoted to potential new members by introducers. These included the following entities: GoBMV; Baird Dunbar; What Partnership; the Resort Group PLC; Friendly Investments; Premier Mark Consultants and Quantum Wealth Management Solutions Limited.

    THE DANGERS OF THE SCOURGE OF “INTRODUCERS” SHOULD HAVE BEEN LEARNED FROM THE ARK SCAM IN 2011.  WARD RECRUITED DOZENS OF THEM ALL OVER THE COUNTRY.  AND YET NONE OF THEM HAS EVER BEEN BROUGHT TO JUSTICE FOR THEIR PART IN ARK, AND HAVE GONE ON TO OPERATE AS INTRODUCERS AND EVEN HOLD KEY CENTRAL ROLES IN LATER SCAMS.  THIS INCLUDES FRIENDLY INVESTMENTS AND JULIAN HANSON – WHOSE SCHEMES ARE NOW ALSO IN THE HANDS OF DALRIADA TRUSTEES.

    Gerard was responsible for producing template risk letters, member application forms, pro forma declarations stating that the person signing them was a self-certified sophisticated investor, member booklets and the statement of investment principles (of which there were four versions). Gerard sent these documents to members once they had been introduced to the Scheme by an introducer.

    GERARD ASSOCIATES, RUN BY GARY BARLOW, HAD ACTED AS AN INTRODUCER TO WARD IN THE ARK SCAM.  AND YET HE WAS LEFT FREE TO OPERATE IN THE SAME CAPACITY IN THE LONDON QUANTUM SCAM – AND EVEN TAKE ON A MORE CENTRAL ROLE.  GERARD ASSOCIATES WAS AT THE TIME AN FCA-REGULATED FIRM – AND REMAINS SO TO THIS DAY.  THE FCA HAS TAKEN NO ACTION TO REMOVE THIS FIRM OR TAKE ANY ACTION AGAINST GARY BARLOW.

    GERARD ASSOCIATES’ GARY BARLOW WAS PAID £253,000 FROM THE LONDON QUANTUM SCHEME FOR DEFRAUDING VICTIMS INTO SIGNING AGREEMENTS THAT THEY WERE “SOPHISTICATED” INVESTORS.  SO WHY HASN’T BARLOW BEEN PROSECUTED AND JAILED – AND MADE TO PAY THIS MONEY BACK TO THE VICTIMS?

    A material number of the new members had a low or medium appetite for investment risk and, in any event, were unaware that the Scheme’s investments were high-risk investments. The Panel was troubled by the apparent disconnect between members’ appetite for risk and the high risk nature of the investments made by Dorrixo. Mr Ward accepted that the Scheme’s investments were high risk, but claimed this was made clear to new members in the Member Booklet.

    I DON’T KNOW WHAT SORT OF DRUNKEN DUMMIES MADE UP TPR’S “PANEL”, BUT DID THEY SERIOUSLY THINK THAT ANY PENSION FUNDS SHOULD EVER INVEST IN HIGH-RISK CRAP?  INDIVIDUAL MEMBERS’ APPETITE FOR INVESTMENT RISK IS IRRELEVANT – THIS WAS A PENSION FUND, NOT A CASINO.

    The case against Ward was based on failures of competence and capability, and also a lack of honesty and integrity as well as Ward’s involvement with “pension liberation” as an introducer of members to the “Ark” schemes.

    BUT TPR AND HMRC KNEW ALL ABOUT THIS BACK IN 2010 AND 2011.  WHY DID THEY DO NOTHING TO PREVENT WARD FROM SCAMMING MORE VICTIMS OUT OF MORE MILLIONS OF POUNDS.  THEY STOOD BACK AND WATCHED – DESPITE HAVING HARD EVIDENCE THAT HE WAS STILL UP TO HIS CRIMINAL MISCHIEF.

    Mr Ward did not dispute that a company of his (Premier Pensions Solutions SL) was involved in introducing members to the Ark Schemes, but states that the relevant activity pre-dated any finding by the courts of pensions liberation and that Mr Ward had no knowledge that the schemes were being used for such activity.

    BUT HMRC, TPR AND DALRIADA ALL KNOW THIS ISN’T TRUE.  THEY HAVE ALL SEEN EVIDENCE THAT WARD AND HIS BENT LAWYER ALAN FOWLER ACTUALLY PRODUCED THE “LOAN” (MPVA) DOCUMENTATION AND EXPLAINED THE LOANS IN SOME CONSIDERABLE DETAIL TO THE VICTIMS.  THE MPVA CONTRACTS WERE DRAWN UP BY FOWLER.  IS IT REALLY CREDIBLE THAT NEITHER HMRC NOR TPR WOULD HAVE OBJECTED TO THIS STATEMENT?

    The Panel did not consider there was sufficient evidence of Ward having actual knowledge of, or turning a blind eye to, the illegal nature of the activity of the Ark Schemes when carrying out his role as introducer before.

    SERIOUSLY?  I HAVE GIVEN EVIDENCE OF THIS TO BOTH HMRC AND TPR ON MANY OCCASIONS.  THIS HAS BEEN DISCUSSED AT MEETINGS WITH DALRIADA TRUSTEES ON MANY OCCASIONS.  EVIDENCE OF THIS HAS BEEN GIVEN TO THE SERIOUS FRAUD OFFICE ON MANY OCCASIONS BY VARIOUS VICTIMS AND ME.  WHAT FURTHER EVIDENCE DID THE PANEL WANT?  EVERY ARK MEMBER’S FILE WAS FULL OF SUCH EVIDENCE.  EITHER TPR IS LYING OR IT IS INCOMPETENT.  OR BOTH.

    The Case Team also relied on certain alleged failures in relation to other pension schemes (called Headforte and Halkin), of which Mr Ward was a trustee. These are denied by him (e.g. an allegation of failure to appoint an auditor to those schemes) and the Panel did not consider it necessary to make findings in respect of them.

    SO WHAT ACTION HAS TPR TAKEN IN RELATION TO HEADFORTE AND HALKIN?  BOTH WERE BEING USED FOR PENSION LIBERATION FRAUD BY WARD – AND YET THE VICTIMS PROBABLY STILL HAVE NO IDEA WHAT HAS HAPPENED TO THEIR MONEY.  IT IS ABSOLUTELY ASTONISHING THAT NO ACTION HAS BEEN TAKEN IN RELATION TO THESE TWO SCHEMES, PLUS ALL THE OTHERS WARD HAS BEEN OPERATING OVER THE YEARS.

    Stephen Alexander Ward (date of birth 11 July 1955) is hereby prohibited from being a trustee of trust schemes in general. This order has the effect of removing the above-named individual from all or any schemes of which he is a trustee. By section 6 of the Pensions Act 1995, any person who purports to act as a trustee of a trust scheme whilst prohibited under section 3 is guilty of an offence and liable (a) on summary conviction to a fine not exceeding the statutory maximum, and (b) on conviction on indictment to a fine or imprisonment or both.

    Pension Life Blog - Stephen Ward - The Death of Trust - Premier Pension solutions - Ward - London Quantum - Stephen WardSO, WARD CAN STILL OPERATE AS A PENSIONS ADMINISTRATOR?  CAN STILL DO PENSION TRANSFERS?  HE IS BASICALLY FREE TO CARRY ON AS BEFORE.  THIS MAKES HMRC AND TPR COMPLICIT IN WARD’S MANY CRIMES.

    THIS IS NOT JUST THE DEATH OF TRUST, BUT OF ANY CONFIDENCE IN THE GOVERNMENT, REGULATORS AND CRIME PREVENTION AGENCIES TO PREVENT OR DEAL WITH PENSION SCAMS AND SCAMMERS.

     

     

    October 30, 2018
  • Tackling Caravan Crime – Chancellor Philip Hammond

    Tackling Caravan Crime – Chancellor Philip Hammond

    Tackling Caravan Crime – Chancellor Philip Hammond.  Victims of pension fraud in scams such as Ark, Capita Oak, Westminster, London Quantum, Friendly Pensions and Salmon Enterprises – will not be surprised to hear that even the Crown Prosecution Service acknowledges that the fraudsters have defeated the system.  Alison Saunders, head of the CPS, has stated publicly that the British justice system can’t cope.  She is stepping down and is clearly disheartened by Britain’s failure to tackle crime – especially fraud.  She has vented her frustration in an interview:

    While fraud has become the most commonly reported crime in England and Wales, with 1.7 million offenses a year, only one in 200 victims ever sees the perpetrator brought to justice. Saunders admitted that many cases were simply being ignored “because it takes time and a skilled investigator”.

    But look hard enough, and you will see how tackling crime can be done successfully.  As someone who constantly writes about the failure of our police and courts to bring criminals to justice, I was surprised to hear of a spectacular success story in leafy Surrey recently.

    Mr. and Mrs. Shore of Thorpe, in Surrey, were successfully prosecuted and jailed for proceeds of crime.  Residing in Runnymede Borough Council – presided over by Chancellor Phillip Hammond – this dastardly pair (in their sixties) were both sent down for a heinous crime under the Proceeds of Crime Act 2002 (“POCA”).

    After many years of detailed investigation, the successful prosecution will send out a resounding warning to all such criminals and will no doubt discourage others from profiting from the same hideous crimes.  And the crime was…….?

    Housing homeless families in caravans without planning consent. 

    Let that sink in for a moment – vulnerable people with young children who had a choice between living on the streets or living in a caravan.  And this crime was committed in Runnymede Borough where there was insufficient housing for the many poor families who could not afford private accommodation and had not been offered council homes.

    This spectacular success story on the part of Hammond, Runnymede Borough Council and the CPS has left the good citizens of Surrey relieved that these dangerous caravan owners are now behind bars and dozens of homeless families are now living on the streets.  Job done; justice served; well done Cutty Sark!

    Hailing from Surrey myself, I am pleased that the county will now be a safer place.  The successful prosecution was in respect of 14 breaches of six enforcement notices issued since 1999 by Runnymede Borough Council, following a seven-day trial at Guildford Crown Court.  The jury heard how the farm owners had not only stationed the caravans on their own land, but had also failed to demolish a shower room.  Unbelievable!

    Hammond must be strutting the halls of Westminster bursting with pride and patrolling the fields of Runnymede with a sense of upholding the social and civil justice with which King John would have been delighted.  In the House of Commons bar, Chancellor Hammond is probably boasting that there is a reason why he is named after a large organ.  In fact, after his spectacular success with the Shores’ caravans, he will probably go down in history as “Caravan Willy” for presiding over such a coup.

    I am sure that the many thousands of people who have lost millions of pounds’ worth of life savings to scammers such as Stephen Ward, Julian Hanson, George Frost, XXXX XXXX, Phillip Nunn, Patrick McCreesh, Stuart Chapman-Clarke, David Vilka, David Austin, Darren Kirby, Dean Stogsdill, Anthony Downs and James Lau will now understand why the CPS couldn’t dedicate any resources to prosecuting them.  And they will, no doubt, be glad that the priority of the judiciary was removing unauthorised caravans in Surrey.

    As in most of my blogs, there is an important postscript: Caravan Willy is a keen property owner and is reported to be worth over £9 million.  The Shores’ land has now been confiscated by Runnymede Borough Council.  And it is worth at least £27 million once planning permission for a housing estate is granted.  I wonder who will be lucky enough to scoop that one up?………

     

     

    October 29, 2018
  • The wheels of the law don´t seem to turn at all

    The wheels of the law don´t seem to turn at all

    Pension Life Blog - Where the wheels of the law don´t seem to turn at all - Friendly Pensions - David AustinThis week Henry Tapper wrote a blog entitled, “The wheels of the law turn (too) slowly”.  He exposes the fact that when it comes to financial crime the justice system in place just isn´t enough.  I think he was being generous with his title.  The wheels of the law don’t just turn slowly – they just don’t turn at all. Friendly Pensions has been in the news this week.

    In the case of Friendly Pensions, we know ringleader David Austin is guilty of setting up 11 fake schemes, with toxic investments including a truffle farm. We know that he and his partners in crime, Susan Dalton, Alan Barratt and Julian Hanson (also connected to the Ark Scam), are guilty of scamming 245 pension savers out of £13.7 million. We knew all of this back in January 2018, yet no arrests have been made!

    The FCA has, however, just yesterday, managed to enforce the following:

    “David Austin, 52, has been banned from serving as a pension trustee and disqualified from working as a company director for 12 years. His business partners Susan Dalton, Alan Barratt, and Julian Hanson have also been barred from trustee roles.

    David Austin’s daughter, 25-year-old Camilla, has been banned from serving as a director for four years for helping him with the scheme.”

    Pension Life Blog - Where the wheels of the law don´t seem to turn at all - Friendly Pensions - David AustinThey have been asked to pay the money back but by the looks of their social media accounts, I don´t think there is much left.  Camilla’s Facebook and Instagram accounts show her sunning herself on beaches and yachts around the world, and posing at luxury alpine ski resorts. David Austin is pictured on a gondola in Venice. They certainly got to enjoy the proceeds of their many victims’ pensions.

    Camilla Austin was a central part of the operational side of the Friendly Pensions scam.  She and a number of her girlfriends went into nursing homes and approached elderly, frail and vulnerable elderly people.  They easily conned them into signing transfer request forms – all that is required to get their hands on millions of pounds’ worth of pension funds.  And, of course, we all know that the ceding providers do nothing to stop fraudulent transfers.

    As Henry points out, banning these people from acting as trustees or directors, does little to deter past, present and future pension scammers. A ban is barely a slap on the wrist as far as we are concerned; these scammers can still launch any number of future dodgy schemes by simply finding the next crooked stooge – just as XXXX XXXX used the idiotic Karl Dunlop to be a director in the Capita Oak scam.

    Keeping pension savers safe from financial crime should be at the top of the list – but, instead, it is at the bottom.  Pension scammers are left free to commit their crimes over and over again.  Take Julian Hanson: he was busily scamming dozens of Ark victims out of more than £5.3 million worth of pensions back in 2011 and 2012, yet he was not prosecuted or jailed.  Hence, he was still able to get “friendly” with David Austin and go on to scam hundreds more victims out of their pensions.

    Remember the Capita Oak, Henley Retirement Benefits and Westminster pension scams?   These were scams run by XXXX XXXX of Nationwide Benefit Consultants.  However, XXXX was never brought to justice and so went on to operate the Trafalgar Multi Asset Fund/Victory Asset Management scam (STM Fidecs acted as the trustees here).  So hundreds more people were again scammed out of their pensions.  XXXX is currently under investigation by the Serious Fraud Office – but effectively still free to operate more scams.   We already have our suspicions about his connections to new scams.

    Capita Oak was registered by HMRC on 23.7.2012 (PSTR 00785484RM) by Stephen Ward of Premier Pension Transfers of 31 Memorial Road, Worsley and Premier Pension Solutions of Moraira, Spain. Ward was responsible for the ARK debacle – also with Dalriada – the scam that was to create the birth of Pension Life.

    Pension Life Blog - Where the wheels of the law don´t seem to turn at all - Friendly Pensions - David Austin

    Despite investigations being made into these schemes, Ward was still able to go on and create the CWM monster scheme that saw around 1,000 victims conned out of their pension funds. Ward is hovering somewhere between his collection of luxury villas in Florida and the Spanish Costa Blanca – but at least he is no longer doing pension transfers.  Over the past nine years, Ward can be linked to dozens more pension scams that have left thousands of victims’ funds decimated.

    These cases are just the tip of the iceberg.  We must not forget Philip Nunn and Patrick McCreesh´s investment scam Blackmore Global. This was in the wake of them doing the lead generation for the Capita Oak and Henley Retirement Fund scams.  The Insolvency Service has wound up these schemes, yet Nunn and McCreesh remain free to defraud more victims as they have never been brought to justice.

    David Vilka of Square Mile International was one of the main promoters of the Blackmore Global Fund scam.   He “advised” dozens – possibly hundreds – of victims to invest their pensions in this scam (despite the fact that he is neither qualified nor regulated to give investment advice).  Again, he has never been prosecuted or jailed, so still remains at large – free to continue scamming people out of their pensions.

    We published the Top 10 Deadliest Pension Scammers blog back in February 2018. In this blog, you can read about Fast Pensions and the Moats, as well as Steve Pimlott of Windsor Pensions. Whilst the Fast Pensions scheme has been wound up by the high court and placed in the hands of Dalriada, neither Sara nor Peter Moat is behind bars.

    Pension Life Blog - Where the wheels of the law don´t seem to turn at all - Friendly Pensions - David Austin

    You can see a depressing pattern here: these words are about cold, hard facts.  The authorities are leaving known scammers free to keep scamming.

    Victims of these scams have been left in misery and financial ruin.  Some have taken their own lives. Yet the perpetrators, those guilty of these repeated financial crimes, are free to do as they please.

     

    This area of financial crime really is where the wheels of the law don´t seem to turn.  Shame there aren’t any regulators capable of doing any regulating, or law enforcement agencies capable of enforcing the law.

    October 24, 2018
  • Transparency Failure With Flying Colours

    Transparency Failure With Flying Colours

    Pension Life Blog - Total Transparency - Andy Agathangelou - Henry Tapper

    The financial services industry has failed with flying colours to achieve transparency – both offshore and in the UK.  The single most important thing about any product or service is transparency – aka honesty.  This is where the profession has tolerated – and even encouraged – bare-faced lying for years and continues to do so today.

    There is nothing intrinsically wrong with overcharging – as long as the overcharger makes it clear he is openly trying to rip his customers off and the victim is consciously happy to be ripped off.  Personally, I’d love to be able to sell my car for 25,000 EUR – but with its age, condition and mileage I know I’d struggle to get 5,000.  However, a crafty, clever person could give it a makeover, a clockover, tell a few convincing porky pies – and some poor fool might pay over the odds for it.

    Most of the victims I deal with tell me the same story:

    • the adviser said the “review” would be free
    • the adviser said the only charge I would pay would be 1.5% a year
    • the adviser said my fund would grow at 8% a year net of charges
    • the adviser never told me about the insurance bond
    • the adviser never told me he was going to invest my funds in high-risk, illiquid funds or structured notes

    Most people describe their offshore adviser as being about as transparent as a pork chop and the “flying colours” of their achievements to be fifty shades of brown.

    Champion campaigner against this sort of dishonesty is international king of transparency Andy Agathangelou – Founding Chair of the Transparency Task Force, the collaborative, campaigning community dedicated to driving up levels of transparency in financial services around the world. Andy writes for Investment Week and calls for total transparency from offshore advisory firms.

    One of Andy’s key statements is: “the financial services industry as a whole has a moral, ethical and professional duty to behave transparently”.  But I wonder if that is a bit like asking for World peace, an end to pollution, a cure for cancer or a reversal of global warming (and a solution to the Brexit problem).

    In the UK, advisers are not allowed to charge commissions on the products they sell, meaning that they will (hopefully) choose the best investment for their client – as there is no financial incentive to chose one product over another. However, offshore advisers do not have these restrictions, meaning that when they are selling an investment they will inevitably choose the one that pays the most commission.

    But are things really that squeaky clean in the UK?  Does the “beady” eye of the FCA have any effect or is it merely a masking mechanism to cloak lack of transparency (aka lying) in a thin veneer of false security?  Henry Tapper’s recent blog on the subject of the FCA’s investigation into 34 firms suspected of non-disclosure of investment charges reports:

    34 firms under investigation by FCA for non-disclosure of investment charges

    and quotes SCM Direct as saying “Its time for the chief executive of the FCA, Andrew Bailey, to demonstrate that he is willing to be the industry enforcer rather than the industry lapdog.”

    One example was cited: Canaccord Genuity claimed its annual management fee was 1.25% plus a transaction commission of £30.  But it turned out the 1.25% was just the beginning – then there were VAT and fund charges bringing the true cost nearer to 2.75%.  Now, I know we women sometimes stretch the truth when it comes to our age, weight or clothes size – but Canaccord’s porky pie was that the real charges were actually twice what was claimed.  That’s not just lack of transparency – that is naked dishonesty.

    I had a browse through Canaccord’s funds and got bewildered by the range of costs – the annual charges seemed to range from 2.1% up to a whopping 4.34%.  I’m just wondering whether an investor prepared to pay 4.34% for one of these funds might like to buy my car as well?  After all, if they can throw their money away so easily, they surely can’t be bright enough to realise my rusty old heap isn’t worth 25k.

    While I was in a browsing mood, I thought I’d have a wee look at Flying Colours.  The company aims to provide super low-cost advice and investment funds and “negate the hidden costs in the market”.  The website claims “I’m building a network of independent financial advisers with a shared vision – to improve the returns of UK investors. Join us.”  But now I’ve got alarm bells ringing: a network?  And who exactly is in the network?

    A list of firms scattered across England from Bristol and Godalming to Liverpool and Skelmersdale – plus a few one-man bands.  But they all claim to be “independent” financial advisers.  How can they be independent if they are tied agents of Flying Colours?  We are back to the “Wild West” offshore culture where members of a network are effectively “feral” and get up to all sorts of mischief due to lack of independence.  And let us not forget that tied agents are illegal in Spain – and for good reason because the Spanish government knows that advisers simply cannot be independent if they are tied to one provider.

    The Flying Colours network includes All Things Financial, Arch Financial Planning, CBG Financial Planning, Cullen Wealth Management, E-Crunch, Fit Financial Services, JAV Financial Planning, JBD Financial Planning, JRF Financial Planning, Lavelle Financial Services, Layfield Wealth Management, Mathew Burrows Financial Planning, NTW Financial Planning, Pepperells Wealth, S Fox Wealth Management, Sterling Financial Planning, The Royall Wealth Partnership and Tyrone Peters Financial Planning.

    But how on earth does a coherent and effective compliance function work with 18 different firms scattered all across the country?  (All of which are lying about their independence).

    The Flying Colours website boasts: “We’re transparent about the charges you’ll pay for advice and investments. And there’ll be no hidden fees, ever.”  But where are the fees and charges?  I searched the whole website but couldn’t find out what they were.  Because they were hidden.

    Flying Colours recently made an ill-fated, abortive attempt to enter the offshore market (leaving considerable embarrassment and expense in its wake).  Far from the claim of “starting strong relationships with a cultural fit and starting friendships“, Flying Colours ended up dumping the failure and retreating to UK-based “DIY” advice.  Once Flying Colours’ offshore mess is cleared up, there will – no doubt – be a sigh of relief since Flying Colours was actually offering a more expensive version of the “cheap” investment advice process at 2% for investors with complex investments (so back to the same old, same old offshore “sophisticated” confidence trick).

    What is there in Britain to protect consumers from lies; scams; lack of independence and transparency; weak compliance and unworkable investment offerings?  Forget the FCA – they are permanently on a coffee break.

    But what about the Insolvency Service?  Isn’t that there to help protect victims from investment scams?  More than a year ago, the IS commenced winding up proceedings against Store First for selling store pods to rogue SIPPS providers such as Berkeley Burke, Carey Pensions, Rowanmoor Pensions, London & Colonial and Stadia Trustees.  So, we have thousands of victims of pension and investment fraud all left hanging – not knowing whether their investments are worthless or not.  And this, of course, includes the Capita Oak and Henley scheme victims.

    The lack of transparency about the store pods was, arguably, not the fault of Store First itself, but caused by the lies of the rogue promoters and “advisers” and the negligence of the SIPPS providers.  A store pod is a great investment if the investor has a burning desire to invest in an illiquid, speculative asset – with the added benefit that he can also put his granny’s knick-knacks in there free of charge.  While any honest adviser would have told the investors to invest their life savings in a low-cost, liquid, prudent fund – and any competent pension trustee or administrator would have refused to accept store pods as pension investments – the fact is that the backhanders set aside any common sense entirely.

    Personally, I think the UK has a long way to go before it can claim to be entirely transparent.  To get there, some sort of regulator would be helpful (forget the FCA – obviously) and an effective insolvency service would contribute to achieving meaningful reform.  But while firms are still lying, obfuscating and cheating, we can’t really say that pension and investment scams only happen offshore.  They are still very much on our doorstep.

    Andy Agathangelou’s important work addresses many of the ills which blight offshore financial services.  But he could do with a team of several hundred helpers to cover all the key expat jurisdictions.  Offshore advisers – as well as UK-based firms – need to be 100% committed to their clients and take into consideration the future of the investments they make. They need to give their clients total transparency, not just on the commissions that will be applied but also on all other fees and charges.

    Total transparency on all fees and commissions, before any transfers are made, would mean investors know exactly what they are getting into. The truth, the whole truth and nothing but the truth, is needed from day one! But it would also be exceedingly helpful if ALL UK-based advisers and fund managers adhered to this model.

    Going back to Canaccord Genuity’s opacity in the case of a client with a £700k portfolio, their non-disclosure of the VAT charges alone led to an additional cost of £10,500. £10,500 over 10 years amounts to £105,000 – quite a sizable chunk of the fund. You would have to have some very good investments to cover these costs AND increase the amount of the fund. Which, of course, is (or ought to be) the main aim of an investment!

    Pension Life Blog - Total Transparency - Andy Agathangelou - Henry Tapper

    Pension Life Blog - Total Transparency - Andy Agathangelou - Henry TapperJust for a laugh, have a look on Canaccord´s website at their list of fees, in particular, their cautious fund.  4.34% a year in charges.  I wondered if this included VAT (being a “cautious” investor!).

    So I decided I´d give them a call, just to clear up the confusion.

    I was passed around various departments and ended up talking to a woman, who was – to put it plainly – pretty unhelpful. I asked about the charges and was told I would need to talk to a fund manager. I was asked how much I wanted to invest. I replied I´d need more information before I could commit to an amount. I was told there was a minimum investment of £250,00, but she still couldn´t tell me about the fees and charges.

    I was put on hold, after she implied she might find out the answers to my questions.  However, she must have forgotten me as no one came back and I was simply left hanging – listening to the sound of silence.  Hopefully, Canaccord won’t forget me in the future.

    Mind you, I didn’t have much luck with Flying Colours either.  I chatted to their online “can I help you?” chap, Stephen Murphy, and asked him what the fund and advisory charges were.  Murphy wanted to know why I wanted to know.  I explained I was writing an article on Flying Colours’ fees.  His reply was: “In regards to you writing an article around fund charges – we are not interested in featuring in an article as you are based in Spain – however, if you need further information around this you could contact Dani Greenfield on dgreenfield@flyingcolourswealth.com – she deals with the marketing side of our business.”  Why so secretive I wonder?

    Pension Life Blog - Total Transparency - Andy Agathangelou - Henry Tapper
    Offshore advisers should be forced to put labels like these on their investments!

    All this leaves us with a number of pressing, unanswered questions:

    • Is it acceptable that the financial services industry has failed with flying colours?  

    • Is it tolerable that in some ways it is as bad in the UK as it is offshore? 

    • Should consumers continue to tolerate unacceptably high charges from providers?

    • Would anybody like to buy my car for 25,000 EUR?

     

    October 14, 2018
  • Trolley’s Pension Scam Guide

    Trolley’s Pension Scam Guide

    Pension Life Blog - Trolley's Pension Scam GuidePension scammers have a “code”.  Rather like pirates, they are not to be trusted. They pick their words carefully, revealing little; they are sneaky and lack any morals. They are good at disguises and if they fear they may be rumbled, they will disappear over the horizon, never to be seen again. They certainly won’t hang around to help pick up the pieces after their victims have been ruined.  Rest assured, they will take as much as they can get and show no remorse. Living the Life of Riley on your hard-earned money is their reward.

    “Yo ho, yo, ho! A scammer’s life for me”.

     

    Those of you who follow Pension Life, will know that we want to put a stop to pension scammers and are trying our hardest to get as much information as possible out to the public about how to avoid being scammed. We want to educate the masses and stop pension scammers worldwide.

    Those of you who are new readers, may not be aware of how common pension and investment scams are, or how easily you could fall victim to a pension scam. But never fear, we have constructed a series of blogs, videos and cartoons for you to read and watch, so you can swot up on the dos and don’ts when it comes to safeguarding your precious pension fund.

    This video has been constructed to show you the pension scammers’ code of conduct. By familiarising yourself with their techniques, you will be better prepared to spot the scammers and avoid falling victim to their schemes.

    Please look through our archives and read about past scams,  serial scammers and failures of the regulators and police to bring them to justice for their crimes.  Make sure you know all there is to know about the evil and seemingly unstoppable world of pension scammers.

    Above all, read the Trolley’s guide, and see how scammers learn their highly-profitable and destructive trade.  Scammers learn from the best – including the author of this guide.  And then they bring their own individual touch to the art of scamming. 

    October 2, 2018
  • Katar Investment Weapons

    Katar Investment Weapons

    Pension Life Blog - Katar Investments

    Katar Investments say they give UK and overseas investment advice in a simple way. However, the types of investment opportunities they are offering are, unfortunately, once again, making my red beacon flash. So, with Déjà vu, let me tell you why. Please make sure you are comfy, this might take a while!

    Firstly, I had a quick look into their team. In my opinion, you would hope that some of the people advertising about giving you advice on investments would hold some sort of financial qualification. However, out of the five team members listed only one mentions a background in finance, the others only list sales experience.

    I had a quick check on the registers to see if the one team member who states she has 10 years´ experience in the financial sector, holds any qualifications with the CII, CISI etc. – she did not appear to have any registered financial qualifications.

    Now, forgive me if I am slightly biased and ever so critical when it comes to firms giving investment advice, but I would hope that any firm giving me advice on what to invest in, would have a team of fully qualified financial advisers. Not just sales experts. Or am I just being fussy?

    Katar Investments state:

    “Whether you are looking for a steady income investment, a property investment with high capital growth and a quick turn around of your capital or an opportunity in the latest emerging market, we have something to offer you.

    We are highly committed to our investors and are focussed (their spelling mistake – not mine) on delivering a level of customer service which is above and beyond. So rest assured our agents will strive to provide you a class A service when you Invest with Katar Investments.”

    I feel that the salespeople who work for Katar Investments may well be driven solely by earning high commissions when it comes to offering class A services. But, again, maybe I am biased! Let’s move on to what investments they offer.

    Pension Life Blog - Katar Investments

    Gatwick – Apart Hotel – This is a serviced apartment/Hotel investment with a minimum investment of 72,500 GBP. The figure states “from”, so I assume you can throw a bit more in for good measure. The promised outcomes:

    • 12 Months rental paid in advance
    • Pension Life Blog - Katar Investments - hotel investmentRental protected by Insurance
    • 5 Years Rental 8%
    • 2% profit paid on exchange deposit during refurbishment
    • 7 days free stay subject to 1 months notice
    • Buy back at 110% after 10 years
    • 40% Finance on units over £140,000
    • Luxury furniture pack included with every purchase
    • Completion date: March 2019

    This is a fixed term investment of 10 years and it has not been built yet (check the completion date). To me, an investment like this would ring alarm bells, as you are purchasing property that has yet to be completed. All sorts of hiccups could occur before the investment was up and running. An illiquid, high-risk investment, only for those who can afford a potential loss on the funds used.

    Office investment in the Kingdon of Fife – Another illiquid and fixed-term investment, although slightly lower in price than the Gatwick offer.

    • Structured exit plan at 10 and 15 years

    This means your money is trapped for an awfully long time. If the market sways, you could be set for a loss and often with fixed-term structured investments there are fees and charges. Investments like this can, if they go wrong, result in you, the investor, falling into negative equity.

    Property investments like these, ring similar to that of the Dolphin Trust´s German property investments – high-risk, unregulated, non-standard “assets”. An awful lot of pension money has been loaned to this company – many DB pensions earned by British Steelworkers were invested here. Introducers saw commissions of up to 25% and in the case of British Steelworkers, Celtic Wealth – who are now in liquidation- were the introducers. The victims do not know where their pension funds are or if they will get any return. Dolphin Trust are still selling their assets, despite the lack of funds being released to mature investors. 

    EIS marijuana opportunity – Grow Biotec, there is a lot of press going around at the moment into the medical uses of marijuana and possibilities of a change in legislation in the UK. In many states of America, the use of marijuana for medical use has been decriminalized. As an avid supporter of natural remedies and healing through nature, the use of CBD extracted from the marijuana plant interests me immensely, the idea of investing in this potentially lifesaving product does have a certain draw.

    Pension Life Blog - Katar Investments - Grow Biotech P.L.C - medical MarijuanaBut, there is always a but! Since working for Pension Life, any investment opportunity that quotes the word ´bio´ gives me the heebie-jeebies. We have only to look back and remember the Elysian Bio Fuels liberation scam promoted by James Hay. The victims of this scam have been left penniless AND with huge tax bills from HMRC.

    Another ´bio´investment disaster was Sustainable Agroenergy (SAE) Plc,  investors were told their investments were in biofuel products, that land was owned in Cambodia and planted with Jatropha trees – a tree with highly toxic fruit that could be used to produce biofuel. Unfortunately, the Jatropa trees were not as fruitful as originally thought. The perpetrators, were thankfully convicted of fraud and bribery offenses.

    The reasons I doubt this as a good investment are the vague promises and the over promises.

    Pension Life Blog - Katar Investments - Grow Biotech P.L.C - medical Marijuana

    ´It is a private offer raising £5 million to develop one of the world’s most valuable portfolios of cannabis-IP assets by 2022.´

    What will be the outcome should this £5 million not be made? A possibility of loss of all or part of your investment.

    ´We are seeking to develop one of the world’s most valuable portfolios of cannabis-IP assets by 2022.´

    Meaning this is a fixed-term investment, with potentially no return for at least 4 years, if not longer, AND only if successful.

    • Projected high returns: Target return of £50 per £1 invested (not guaranteed)
    • EIS Tax relief: up to 50% income tax and capital gains tax relief. Remember tax rules can change and benefits depend on circumstances.

    If it sounds too good to be true – it probably is. Plus this figure is not guaranteed and seems to me like it was just plucked out of the sky, nice and high, to lure investors in.

    Airport Parking Investments,

    These investments are what we in the industry call illiquid. Once your money is in, then it´s pretty hard to get it out quick AND unless the venture does well there will be no return. With regards to pension investments, these are the very worst, toxic assets to invest in.

    Unfortunately, they are often the assets which pay handsome investment introduction commissions to the salesperson, and this is why serial scammers, like Ward, love them. They go in with the ´eco-bio´ sale pitch or the glamorous property ownership – withholding the high-risk, fixed-term rules surrounding the investment.

    A pension fund is a retail investment that should be placed in a low to medium-risk asset. Fixed terms, high-risk and illiquid investments should be avoided at all costs.

    Pension Life Blog - Katar Investments - Grow Biotech P.L.C - medical MarijuanaThe types of investments offered by Katar Investments are high-risk and illiquid, if you have a spare five grand that you can afford to lose, then go for it: have a cheeky punt on Bio Grow. You may be pleasantly surprised and get the target return of £50 per £1 invested (just remember to duck smartly when those pink things with curly tails fly a bit too close!). However, if your money is dear to you and you cannot afford to lose it, please stay away from shiny pink and green investments like this.

    When it comes to your precious pension fund it is always best to air on the side of caution and go for the safe bet. It might not pay the highest interest, however, slow and steady wins the race. Meaning you will be able to enjoy your hard earned pennies in your retirement – stress free.

    John Rodgers wishes he had said no to the offers of Continental Wealth Management.

    September 11, 2018
  • Trustees Must Block Transfers to Pension Scams

    Trustees Must Block Transfers to Pension Scams

    Pension Life Blog - Trustees Must Block Transfers to Pension Scams - ceding pension trustees - Trustees have the power to block pension transfers if they suspect a scam – they must use it!  Now the Ombudsman has upheld a complaint against the Police trustee, there is hope for further justice against negligent pension trustees.

    In the Royal London v Hughes case, Royal London suspected an attempted transfer was destined to go into a scam and blocked it.  The member, Ms Hughes, complained to the Pensions Ombudsman – but he did not uphold her complaint.  He said that Royal London was quite right to block the transfer.  But Ms Hughes appealed the matter to the High Court and the judge overturned the Ombudsman’s determination.

    The industry was, naturally, appalled.  But this matter left many questions unanswered:

    • Why was a singing teacher so desperate to transfer her £8,000 pension and have it invested in Cape Verde property? (Had she developed a passion for collapsible flats?)
    • Where did she get the many thousands of pounds it must have cost her to have a barrister represent her in the High Court?  (Considerably more than eight thousand quid I reckon).
    • How come the mighty Fenner Moeran QC (for Royal London) got so soundly defeated by a public access barrister?  (Was his sharp stick a bit blunt that day?)
    • What happened to the several hundred people queuing up behind Ms Hughes to have their pensions invested in Cape Verde flats?  (“Flat” being the operative word).

    I could ask loads more pertinent and searching questions – like why did Ms Hughes’ public access barrister, Frances Ratcliffe of Radcliffe Chambers, think it was a good use of her considerable skills to defend an obvious pension scam?  How drunk was the judge on the day?  How many more people got scammed out of their pensions because of this abomination – and proof the law is not just an ass but a whole donkey farm?

    Anyway, enough already.  The damage was done in the Royal London v Hughes case.  And now, hopefully, the door to justice has been opened in the Police Authority v Mr N case – as eloquently reported by Henry Tapper in his blog on 2.8.18.  But there is a great deal more work to be done on this now: the scammers who organised and promoted the London Quantum scam need to be prosecuted and jailed; and the FCA-regulated firm – Gerard Associates – which gave the advice to the police officer (Mr N) needs to be sanctioned by the FCA.  Gerard Associates – run by Stephen Ward’s associate Gary Barlow – also needs to refund the £5k they charged Mr N – and indeed all of the £220k they charged the 98 London Quantum victims.

    Now is the time to bring to justice not only the pension scammers, but also the negligent ceding pension trustees who allowed the scammers to succeed – and facilitated financial crime.

    At the time Mr N was scammed by Stephen Ward; Viva Costa International (the “introducers”); and FCA-regulated advisers Gerard Associates, the Pensions Regulator’s “Scorpion” campaign was in full flow.  But it was unbelievably inept.  It only really talked about liberation and ignored the many other kinds of fraud being perpetrated at the time – i.e. investment fraud.

    The London Quantum pension scam came hard on the heels of the Capita Oak and Henley scams – which straddled the Scorpion watershed of February 2013.  The transfer administration for Capita Oak was done by Stephen Ward of Premier Pension Solutions (Spain) and Premier Pension Transfers (Worsley, Manchester).  Ward knew from first-hand experience how ceding trustees were starting – albeit agonisingly slowly and gradually – to resist transfer requests.

    Here is evidence of the first tentative – and very inconsistent – moves to do some long-overdue diligence on pension transfer requests – as reported by Stephen Ward’s team of transfer administration scammers:

    24.4.2013 – ReAssure Pensions – “The scheme now want the client’s application and new-dated screenshot emailed to Alan (Fowler – Ward’s pension lawyer chum) – on hold at Tom’s (Biggar – XXXX XXXX’s mate) request”.

    11.4.2013 – Prudential – “Transfer canceled as per XXXX (XXXX XXXX’s wife)”

    26.4.2013 – Zurich – “Unwilling to process – not sure why – need to cancel”

    11.7.2013 – Zurich – “On hold as there may be an issue with Scorpion”

    26.4.2013 – Friends Life – “Awaiting trust scheme rules – with Anthony (Salih – Ward’s mate) – need to cancel”

    30.5.2013 – Aviva, NHS, Co-op, Friends Life – “Schemes are refusing to transfer”

    11.6.2013 – Scottish Life – “Scheme contacting client – believed not transferring”

    However, during this same period, there were plenty of transfers being made in defiance or ignorance of Scorpion.  These included ceding schemes NHS (£43k), Scottish Widows (£25k), LGPS Newham (£47k), Aviva (£54k), Xerox £92k, Zurich (£21k), Prudential (£25k) and Standard Life (£53k).

    But the most worrying was the Firefighters Pension Scheme: £69K after the following notes were made:

    “Advised that the trustees committee are meeting to discuss cases and we are awaiting a call back next week.  Transfer sent today 2.7.13 and paid on 16.8.13.  Statement sent to XXXX  and Tom (Biggar)”. 

    So the Firefighters were no better than the Police Authority in terms of ignoring the Scorpion warning.

    And here is what the Scorpion warning was saying from 2013 onwards – and, indeed, was still saying in 2016 when the last couple of hundred Continental Wealth Management victims were in the process of being scammed:

    Pension Life Blog - Trustees Must Block Transfers to Pension Scams - ceding pension trustees - Predators Stalk Your Pension

    Companies are singling out savers like you and claiming that they can help you cash in your pension early.  If you agree to this you could face a tax bill of more than half your pension savings.

    Don’t let your pension become prey.

    Pension loans or cash incentives are being used alongside misleading information to entice savers as the number of pension scams increases.  This activity is known as ‘pension liberation fraud’ and it’s on the increase in the UK.

    In rare cases – such as terminal illness – it is possible to access funds before age 55 from your current pension scheme.  But for the majority, promises of early cash will be bogus and are likely to result in serious tax consequences.

    What to watch out for?

    1. Being approached out of the blue, over the phone or via text message
    2. Pushy advisers or ‘introducers’ who offer upfront cash incentives
    3. Companies that offer a ‘loan’, ‘savings advance’ or cash back’ from your pension
    4. Not being informed about the potential tax consequences

    Five steps to avoid becoming a victim

    1. Never give out financial or personal information to a cold caller
    2. Find out about the company’s background through information online. Any financial advisers should be registered with the FCA
    3. Ask for a statement showing how your pension will be paid at retirement and question who will look after your money until then
    4. Speak to an adviser that is not associated with the proposal you’ve received, for unbiased advice
    5. Never be rushed into agreeing to a pension transfer

    If you think you may have been made an offer, contact Action Fraud.

    But, the Scorpion warning failed tragically in so many different ways:

    • The warning only talked about liberation.  Many victims thought this warning didn’t apply to them as they had no intention of liberating their pension fund
    • No information was given on how to find out about a company’s background – and how to establish whether it was regulated
    • The warning talked about advisers being FCA regulated – but ignored the question of offshore advisers who obviously wouldn’t be FCA regulated
    • The public was advised to contact Action Fraud – but did not disclose that Action Fraud would do absolutely nothing

    Pension Life Blog - Trustees Must Block Transfers to Pension Scams - ceding pension trustees - In 2015, we went to see the Pensions Regulator to talk about the failings of the Scorpion campaign – as well as the failings of the Regulator.  Two Ark victims and I met the then Executive Director for Regulatory Policy – Tinky Winky.  Our intention was to explain to him how the Scorpion campaign had failed and how it needed to be made more robust and comprehensive.

    Tinky Winky, flanked by two lawyers and a paralegal, told us to “hop it” – and warned us that if we tried to interfere with the authority of the powers of the regulator, our arse would be grass and he’d be a lawnmower.  A year later the Scorpion warning had still not been updated or improved and hundreds more victims lost their life savings.

    The Pensions Ombudsman is, naturally, the hero of the hour in the Mr N v Police Authority case.  And hopefully, he will find for the rest of the victims if they all now bring complaints against their negligent ceding trustees in the London Quantum case.  But we must remember that, contrary to what the Ombudsman’s service has said for the past few years, the industry did know about pension scams long before the Scorpion Campaign in February 2013.

    In fact, a clear warning had been given in 2010.  The Pensions Regulator had been fully aware that since 1999 pension scams were on the increase, and yet did not make it clear to ceding pension trustees what their statutory obligations were in respect of transferring victims into scams. On 13.7.2010, tPR Chair David Norgrove stated that: “Any administrator who simply ticks a box and allows the transfer, post July 2010, is failing in their duty as a trustee and as such are liable to compensate the beneficiary.” 

    But pension trustees claim they never read that message (let alone heeded it) and that it was neither publicised nor distributed.  Further, in the same year Tony King, the Pensions Ombudsman, reported that he had “found that pension trustees failed in carrying out serious fiduciary responsibilities to others in circumstances in which the law specifically states that they should not be protected from liability.”  And still tPR did nothing.  And the Pension Schemes Act 1993 was not amended to reflect the urgent need to protect the public.

    The Pensions Regulator’s predecessor – OPRA (Occupational Pensions Regulatory Authority) had warned about the dangers of pension scams years before 2013 – as had HMRC.  The last thing I want to do is criticise the Ombudsman – as this must be his hour of glory and we must all be hugely grateful to him.  Especially Mr N and his fellow London Quantum victims.  But we must remember that the industry in general, and pension trustees in particular, should have been alert to pension scams long before Scorpion.

    Now is the time to bring to justice not only the pension scammers, but also the negligent ceding pension trustees who allowed the scammers to succeed – and facilitated financial crime.

     

     

     

     

    August 7, 2018
  • Mastermind – Stephen Ward

    Mastermind – Stephen Ward

    Since 2010, £millions have been lost to pension scams, thousands of victims have lost their retirement savings, large-scale misery and poverty are the terrible results. One common factor connects many of these scams: one man – Stephen Ward.

    Here at Pension Life we have made a video – based on the Mastermind quiz.  Lessons must be learned from the dozens of scams, headed by Stephen Ward, which ruined thousands of lives and destroyed hundreds of millions of pounds’ worth of pensions.

    Premier Pension Solutions, Stephen Ward’s company in Moraira on the Costa Blanca, was responsible for the Ark pension liberation scam. Ward had advised 160 victims to transfer £10m worth of secure pensions into this scheme on the promise of having 50% of their pensions paid to them in cash. 2011 saw the Pensions Regulator place the scheme in the hands of Dalriada Trustees.  The High Court called the Ark scheme a “fraud on the power of investment”.

    Ward then went on to his next scam: Evergreen New Zealand QROPS and the Marazion “loans”.  The “sister company”, Continental Wealth Management, was running the cold-calling operation to lure victims in – and some of the CWM salesmen were hanging around outside supermarkets to try to trap people into this scam.  When Evergreen was removed from the QROPS list, Ward continued to work with CWM. It is not known how many other Stephen Ward/Premier Pension Solutions scams CWM was involved in.

    Mastermind – Stephen Ward

    1. Who is the owner and director of the Spanish firm Premier Pension Solutions based in Moraira on the Costa Blanca in Spain?

     Stephen Ward

    Pension Life Blog - Mastermind - Stephen Ward has 10 luxury villas and his company is based in Moraira on the Costa Blanca

    2. In 2010, who was running road shows in the United Kingdom to promote the Ark pension liberation schemes and recruit introducers?

    Stephen Ward

    Pension Life Blog - Mastermind - Stephen Ward has 10 villas which are mortgage free

    3. In the Ark pension scam, which operated in 2010/11, who was the biggest introducer with more than £10m worth of transfers?

     Stephen Ward

    Pension Life Blog - Mastermind - Stephen Ward has many different places to sleep at night and his company is based in Moraira on the Costa Blanca

    4. Who is the author of the Tolley’s Pensions Taxation Manual described as an essential reference source for all tax practitioners?

    Stephen Ward

    Pension Life Blog - Mastermind - Stephen Ward has published his dirty book - Tolly´s pension taxation 2016-2017 but no investigation by the serious fraud

     5. Who administered the pension transfer administration in the Capita Oak scam which saw 300 victims lose £10m worth of pensions and is now under investigation by the Serious Fraud Office?

    Stephen Ward

    Pension Life Blog - Mastermind - Stephen Ward has a new villa (as well as the 10 others) which he bought in 2018

      6. Who handled the pension transfer administration of the Westminster pension scam which saw 79 victims lose over £3.3 million pounds to worthless investments: now also under investigation by the Serious Fraud Office?

     Stephen Ward

    Pension Life Blog - Mastermind - Stephen Ward enjoys a spa beneath the stars whilst thousands of victims see their pensions in the hands of dalriada trustees

     

     7. Who was the trustee for the London Quantum pension scheme now in the hands of Dalriada Trustees and invested in high-risk, illiquid investments such as Dolphin Trust which paid investment introduction commissions of up to 30%?

     Stephen Ward

    Pension Life blog - a servicing police man lost his pension to London Quantum - some reward for service to his country but there has been no public investigation by the serious fraud

    8. Which Level 6 qualified former pensions examiner and IFA in 2014 was famously quoted as saying: “The schemes with which we are involved are completely above board.  The Ark thing is history now.”

    Stephen Ward

    Pension Life Blog - Mastermind - Stephen Ward villa just 10 minutes away from Disney - but no investigation by the serious fraud

    9. Who was promoting the Elysian Fuels SIPPS liberation scheme which he described as allowing members to “trouser” most of their pension fund in cash?

    Stephen Ward

     Pension Life Blog - Mastermind - Stephen Ward has a nice pool to relaxing in after scamming thousands of people out of their pensions

     10. Who was the owner of the loan company Marazion which operated pension liberation loans in the Evergreen QROPS scam which saw around 300 people lose £10 million worth of pension funds?

    Stephen Ward

    Pension Life Blog - Mastermind - Stephen Ward Is responsible for the suicides of three victims of the ARK scandal - Ark is now in the hands of dalriada trustees

    What is a Pension Scam?

    May 20, 2018
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