Tag: Cranbourne Star

  • ARK Pension Scam: How it worked

    ARK Pension Scam: How it worked

    ARK PENSION SCAM – THE WAY THE SCHEME WORKED:

    Six “occupational” schemes were used: Lancaster; Portman; Cranborne Star; Woodcroft House; Tallton Place and Grosvenor Parade.  Each scheme had to have less than 100 members to stay under tPR’s inspection radar.  Member A would transfer their £100k pension to – say – Lancaster; Member B would transfer their £100k pension to – say – Tallton; after paying the 5% fee, both A and B would then have £95k in their respective schemes; the Lancaster scheme would then make a “loan” of £50k to member B and the Tallton scheme would make a “loan” of £50k to member A.  These so-called loans were called MPVAs (Maximising Pension Value Arrangements) and formed part of a scheme called PRP (Pension Reciprocation Plan).

    This MPVA arrangement was supposed to work along “peer to peer” lines with a named member “lending” 50% of their fund to another member of a different fund.  Apparently, there was a spreadsheet showing the reciprocal arrangements between members, and some members were told they had been “paired” with another member with a similar sized transfer.  However, it was actually impossible to determine whether any individual had “made” a loan since no segregated accounts were kept by Ark, and even when Dalriada Trustees took over they did make any attempt to produce segregated accounts.  This point is very important because HMRC are issuing protected assessments on the basis of members receiving as well as making loans.  In my defence against the assessments I am making it clear that nobody made a loan – and even if there was a spreadsheet stating that a member had made a loan, it is impossible to establish that they did because all the funds were pooled.

    In the beginning, i.e. around Q3 2010, all the transfer administration was handled by Craig Tweedley and his team at Ark, but as the success of the scheme grew more and more quickly, Stephen Ward and his UK manager Anthony Salih (based at 31 Memorial Road, Worsley) were gradually taking over.  By May 2011 when Dalriada were appointed, all the members’ records were held at 31 Memorial Road.  Ward was on the point of effectively taking over completely and squeezing Craig Tweedley out altogether.

    THE IDENTITY OF THE MAIN PLAYERS

    Ark was set up by Andrew Isles of Isles and Storer Accountants and he called in Craig Tweedley of Ark Business Consulting and Stephen Ward of Premier Pension Solutions SL and Premier Pension Transfers Ltd.  Two pension trustee firms were set up: Athena and Minerva, and fourteen schemes were registered with HMRC and tPR (although only six were ever actually used as tPR appointed Dalriada in May 2011 before the other eight could be used).

    http://www.islesandstorer.com/#!meet-the-team/c193z

    https://beta.companieshouse.gov.uk/company/OC353908/filing-history?page=2

    http://www.ifalife.com/members/profile.asp?UserID=15937

    https://www.bookdepository.com/Tolleys-Pensions-Taxation-2016-2017-Stephen-Ward/9780754552642

     

    HOW THE MAIN PLAYERS WERE INVOLVED

    This started as Craig Tweedley’s “baby” but Stephen Ward was rapidly taking over.  Tweedley had brought in various “introducers” (see the PRP spreadsheet) including Andrew Isles himself, Cavendish & Provident, Geoff Mills, Jeremy Denning and Silk Financial Services etc., although by far the biggest single introducer was PPS who accounted for approximately a third of the total transfers.

    Ward ran a series of “road shows” at various locations in the UK, including Silvermere Golf Club, to introduce this “amazing opportunity” to a variety of potential introducers and clients.  Apparently these events were full to capacity – as Jeremy Cornford will attest.  Throughout the promotion of Ark, Ward used his credentials as a CII Level 6 qualified IFA, former pensions examiner and government consultant, author of Tolleys Pensions Taxation, and tied agent of FSA, CNMV and DGS as evidence of his professionalism, authority and respectability.  When questioned as to whether the loans were definitely not taxable he assured potential members that he was qualified to guarantee there would be no tax to pay.  When asked whether he had obtained legal opinion on whether there was any risk at all that the loans would be subject to tax, he replied that he had not because that would be tantamount to admitting that he was not sure.

    In February 2011, after HMRC held a meeting with Tweedley and Ward, Tweedley did obtain legal opinion from junior barrister Amanda Harding, and this confirmed her view that the loans were not taxable because of their reciprocal nature.

     

    LOCATION OF MAIN PLAYERS’ PERSONAL ASSETS

    Premier Pension Solutions S.L. CIF: B54414198 DUNS: B54414198

    • Buzon 3077, Calle Haya 64, Moraira 03724 Alicante Email: sward@ppsespana.com
    • Financial Information 2014 (EUR) – preparing to wind up the company:

    Sales: 300,739.00 (down from 471,842.00 in 2013); Profit/Loss: -42,402 (down from +13,477 in 2013);

    Total Assets: -46,493 (down from +6,888 in 2013); Owned and directed by Stephen Alexander Ward

    Stephen Alexander Ward of Calle Madrono 24, Moraira, Alicante.  Companies owned and directed:

    • Premier Pension Solutions SL registered with the CNMV and DGS
    • Premier Pension Transfers Ltd Co. No. 06657673, c/o Butterworth Jones, 7 Castle Street, Bridgewater TA6 3DT (previously 31 Memorial Road, Worsley, Manchester M28 3AG) (Net Worth £193,963)
    • Dorrixo Alliance Ltd Co. No. 07808577, 7 Castle Street, Bridgewater TA6 3DT (previously 31 Memorial Road, Worsley, Manchester M28 3AG) (Net Worth £22,791)
    • Marazion Ltd. Co. No. HE 299383, 225 Spyros Kyprianou Avenue, Strovolos, P.C. 2047, Nicosia, Cyprus
    • Assets: properties in Teulada, Alicante – jointly with wife and son
    • Seneca 108 LLC http://www.corporationwiki.com/p/1svk23/seneca-108-llc which owns at least six luxury villas in Florida and which generate income of approximately $10k per week http://www.homeaway.com/vacation-rental/p3538149
    • International Pension Transfer Specialists, 8 Ctra Moraira-Teulada, 62 CC Barclays, 03724 Moraira, Alicante (PO Box at Letters R Us) –  registered with the CNMV and DGS
    • Accounts filed in Spain for PPS do not reflect income of 1m Eur from Ark in 2010/11 and 1m Eur from Evergreen in 2011/12.  (Also earned $0.5m a year from Florida properties since 2012).  PPS’ declared sales for 2010 were 193k; for 2011 were 438k; for 2012 were 461k.  Possible tax evasion Spain and elsewhere.

     

  • ARK PENSION DISASTER – THE TIMES ARTICLE

    The Times – good quality journalism reporting poor quality financial advice

    Ark Pension Disaster – The Times Article – Mark Atherton Uncovers Pension Liberation Scam

    Money

    Pension scam leaves victims in debt

    Angie Brooks is leading a campaign to secure justice for victims of a pensions “liberation” scam                                                  Pic: Richard Pohle

    Mark Atherton

    Last updated at 12:01 AM, September 13 2014

    Thousands of people have lost more than £500 million of their savings after being duped into taking part in unauthorised “pension liberation” scams. Experts say that the true figure runs into billions because many cases go unreported.

    They also warn that next year’s relaxation of the rules governing how you can take your pension cash will provide a fertile breeding ground for fresh scams as fraudsters queue up to exploit the uncertainty around the new pensions regime.

    Some of today’s victims fear they have lost their entire pension savings, while others say they have been driven to the brink of suicide.

    The lure of pensions “liberation”

    Savers were originally lured into transferring their pension pots by the promise of getting their hands on their retirement cash before the age of 55. However, many succeeded in “unlocking” only half of their pension pot, with the rest going partly into uncertain property investments, partly into cash and partly to the scheme’s promoters through hefty fees.

    Savers were told that these schemes were legitimate but that was not true. Now many of the victims are facing financial ruin as they are being told to hand back the money they “liberated”, while Revenue & Customs is poised to slap on a tax penalty of 55 percent of the “unlocked” cash. In many cases, they simply do not have the money to pay.

    The Ark schemes

    Among the biggest “liberation” schemes were those created by Ark, a pensions consultant. These were marketed by financial advisers and so-called “introducers” in the UK and Spain. One of the main players was Stephen Ward, of Premier Pension Solutions (PPS), a Spanish-based company.

    Angie Brooks, below, a former tax barrister, who is leading the class action on behalf of the Ark victims, says: “Mr Ward assured Ark applicants that it was lawful and tax-free and was approved by the Revenue and the pensions regulator. The Revenue registered the six Ark occupational pension schemes without checking for compliance. So did the pensions regulator. This understandably gave the Ark members the reasonable illusion that the schemes were lawful and approved by the UK government.”

    The registration procedures have now been changed. She says that between September 2010 and May 2011, £25 million was transferred from personal and occupational pension plans into Ark schemes, for fees of up to 10 percent of the value of the transferred pot. More was transferred after this, bringing the total to £27 million.

    PPS teamed up with AES International, a firm regulated in the UK, which gave PPS a tied agent agreement to operate in Spain under its regulation (though this did not authorise PPS to carry out pension transfers). PPS carried out at least 160 Ark pension transfers, totalling £10.7 million, with Ark taking a 5 percent cut of each transfer, PPS pocketing a further 3 per cent, as well as a slice of the Ark money, and AES receiving a 12.5 percent slice of PPS’s cut.

    The schemes “unlocked” money by arranging for members to make reciprocal loans, worth about half the value of their pension pot, to each other. Many believed they would not have to repay these loans, known as Maximising Pension Value Arrangements (MPVA). The remaining half of their pension pots, after deduction of hefty charges, was partly held in cash and partly used to buy plots of land or timeshares.

    Alarm bells started to ring in December 2010 when the Revenue expressed “concerns” over the lawfulness of the schemes, though it was not until May that they were suspended and a trustee — Dalriada — appointed. It embarked on litigation that resulted in the Ark schemes being declared invalid and the reciprocal loans judged to be “unauthorised payments” in the High Court in December 2011.

    The cost to Ark victims

    The judge’s ruling delivered a twofold blow to Ark members. First, Dalriada was enabled to demand back the money they had received as loans under the schemes. Second, since the loans were “unauthorised payments” the Revenue was entitled to levy a penalty charge of 55 per cent on these sums. The Revenue has not decided whether to tax the donors or recipients.

    Dalriada has managed to recover more than £6 million of the £7 million which Ark spent on property investments. Sean Browes, of Dalriada, adds that it also has £9 million of Ark money in a bank account and is seeking to unscramble the £10 million of reciprocal loans. However, this has come at the cost of £800,000 in Dalriada’s fees and £1.9 million in legal costs.

    According to Ms Brooks, Mr Ward has, since the suspension of Ark, been linked to pension liberation schemes which have attracted hundreds of fresh customers — something he denies.

    He says: “PPS provided information regarding the Ark schemes in good faith based on the information and opinions provided by Ark and our own independent research. We included statements that independent financial advice should be sought and a number of people who did take advice found the experts they consulted agreed with our understanding of the position. We believe the damage has been caused primarily by the Revenue’s failure to take action when it first became aware of the schemes and by Dalriada’s fees.”

    Sam Instone, the head of AES International, says: “We had nothing to do with the Ark scheme and we earned a negligible amount from our tied agency with PPS. We have no legal responsibility for what has occurred here.”

    Craig Tweedley, who created the Ark schemes, says: “We took extensive advice about the validity of these schemes before launch. We were concerned when we learned that some introducers were claiming that the MPVA loans did not have to be repaid when a key part of our scheme was that they should.”

    Dalriada says: “The Ark schemes were very unusual and have taken some time and, unfortunately, money to unravel. The members of these schemes have been scammed.”

    Anyone with information about these pensions “liberation” schemes is invited to contact mark.atherton@ thetimes.co.uk

    Be on your guard against scams

    • Ahead of next year’s changes to the rules, one aspect of which means those aged 55 or over can take money from their pension, the scammers are gearing up to part you from your cash. Be on your guard
    • If someone promises to help you take money from your pension pot before the age of 55 it is almost certainly a scam: you could lose the lot
    • Even if you are over 55, do not deal with anyone targeting you by phone, text message or approaching you in person. Beware the words: ‘free pension review’
    • Do not deal with anyone who is not registered with the Financial Conduct Authority for pension transfers
  • FIGHTING BACK! – THE ARK PENSION VICTIMS WHO WON’T TAKE IT LYING DOWN

    FIGHTING BACK! – THE ARK PENSION VICTIMS WHO WON’T TAKE IT LYING DOWN

    Battered, bewildered and furious, the Ark Pensions victims are gradually coming to terms with the fact that this will be a long and determined battle.

    In 2011, when financial advisers (plausible, credible and slick) assured the victims their pensions would be transferred to a legitimate HMRC-“approved” scheme which would allow a tax-free lump sum of 50% – structured as an unsecured, low-interest loan, it was not surprising that so many people took up the offer.  The offer didn’t come cheap, as there were fees of between 8% and 13% (sometimes more).

    Stephen Ward of Premier Pension Solutions had been running seminars around the UK to promote the Ark scheme to introducers and victims alike and was responsible for a third of all the transfers into Ark – totalling over £10 million.  He used his status as a CII Level 6 qualified former pensions examiner and author of the Tolleys Pensions Taxation Manual to lull the victims into a false sense of security.

    Within a matter of months, weeks or even days, the Ark victims learned that the scheme had been suspended and placed in the hands of Dalriada Trustees.  In the High Court in 2011, Justice Bean, declared the pension withdrawals/loans (called MPVAs – Maximising Pension Value Arrangement) as unauthorised payments and the whole scheme a fraud on the power of investment.

    The Ark pension victims – 486 in total – now face repayment of the “tax-free” lump sums which are classed as loans. They also potentially face 150% tax on the loans, even if they are paid back.  HMRC is trying to get the tax at 55% on the receiving end and the making end of the loans, plus 40% on the scheme itself.  HMRC is also trying to tax those victims who did not receive a loan at all.

    The tax is being vigorously defended – both by Pension Life and Dalriada Trustees.  The Ark Class Action is asking parliamentary candidates to back a motion for a tax concession for victims of fraud.  The victims want to ensure those responsible for this appalling situation are called to account and made to put the members back into the position they should have been in before their pensions were transferred to the Ark schemes and the loans taken out.

    It is not going to be a quick or easy battle, but all the Ark victims are determined not to take this lying down – especially those who did not receive a loan but are being threatened with a tax liability just because “they intended getting a loan”.

    During week commencing 19th June 2017, the victims will be challenging Dalriada Trustees in the High Court Beddoe proceedings.  Dalriada will be asking the court for permission to use the Ark members’ funds to take legal action against them to recover the MPVA loans – around £11 million in total.  If we fail to challenge the application successfully, it will be a race between Dalriada and HMRC to see who can bankrupt the victims first and make them homeless.  HMRC claim the tax will remain payable even if the loans are repaid.