Tag: Dalriada

  • London Quantum Pension Scam: How it worked

    London Quantum Pension Scam: How it worked

    HOW THE LONDON QUANTUM PENSION SCAM  WORKED

    The London Quantum pension scam was the brainchild of Stephen Ward.  Ward’s firm Dorrixo Alliance was the trustee and administrator of the scheme.  Dorrixo was also trustee for a number of other pension liberation scams such as Headforte and Southlands which were used for “loans” when Evergreen got removed from the HMRC QROPS list.

    London Quantum victims were promised “healthy” returns and the scheme is now in the hands of Dalriada Trustees who were appointed by the Pensions Regulator in 2015.

    THE IDENTITY OF THE MAIN PLAYERS

     Stephen Ward of Dorrixo Alliance (trustee/administrator)

    Gerard Associates

    Viva Costa International

    HOW THE MAIN PLAYERS WERE INVOLVED

     Ward’s Dorrixo Alliance was the trustee/administrator.  Gerard Associates https://www.gerardassociates.co.uk/ (website undergoing “routine maintenance”) provided (or didn’t provide) advice.  VCI were the introducers.

    WHAT THE PENSIONS REGULATOR SAID ABOUT THE SCAM

    TPR gave Stephen Ward a stern “dressing down” over the London Quantum scam and warned all pension savers to be extra careful when considering transferring away from their existing pension, after publishing details of governance failings in the London Quantum Retirement Benefit Scheme.

    The London Quantum pension scam brought into sharp focus how people should remember that promises of high and/or guaranteed investment returns that sound too good to be true are often scams.

    While investigating this scam, the regulator discovered that more than £5.8 million worth of victims’ pension funds had been put at risk between August 2014 and May 2015.

    Nicola Parish, Director of Case Management at TPR, said: “The concerns we received about the scheme highlighted worrying factors regarding its governance.

    “This case should act as a reminder to all savers, pension scheme trustees and administrators to remain alert to the dangers of transferring pension savings in order to access unrealistically high returns often associated with exotic sounding investment opportunities.”

    TPR reported that, as trustee, Dorrixo – run by Stephen Ward and his sidekick Anthony Salih, had a “serious disregard to the obvious risks that members might be misled about the true nature of the investments held by the scheme”.  The regulator also exposed other aspects to Ward’s scam which included:

    • Risky and illiquid investments
    • Lack of documentation
    • Introducer fees – The scam was promoted to victims by introducers and cold callers, who were paid up to 30%.
    • Advisers – There was no auditor was appointed to the scheme and Stephen Ward did not take proper advice on the investments.

    Clearly, the London Quantum scam was never set up for the benefit and in the interests of the victims, but in the interests of Stephen Ward and his team of scammers to earn the maximum amount of commission out of the toxic, illiquid, high-risk investments.

     

  • 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.

     

  • Pension scam victim David King describes his misery

    All pension scam victims experience profound misery, worry, stress and sleepless nights.  Few have the strength to speak out and tell the world what it is like to be the victim of this despicable financial crime.  I asked David King, one of the Ark victims, to write his story:
    “Firstly without you and your team fighting our case I think the casualty list would be extremely high as I know personally the effect its had on me and my family, and I consider myself an average person in this world so it has to be that others suffer the same as me but just don’t shout aloud how much this has affected people.
    Pension Life Blog - Pension scam victim - David King - SCAM VICTIMS OF PENSION FRAUD
    DAVID KING
    HMRC, well where do I start, well let me say this, since 2011 I have lived in fear of the postman and anything coming via the post from HMRC. Every time a letter comes I shudder in fear of a tax demand, even though it may be the gas bill my mind always worries and makes me ill with worry. I am sure other like minded people will have endured the delights of HMRC and their approach with zero empathy and zero concerns; they could not care less what the impact is to individuals of these multiple frauds.

    HMRC allow big organisations such as Google and Starbucks to operate in the UK paying virtually nothing in taxation, and seem to resist engagement with them for fear of losing, or is it just too difficult as they have to do some work! however, individual people like us get the full weight of HMRC on our cases as they know we are soft targets, and no matter what we do to try to defend ourselves they just plough the pressure back on without even listening to a single word we throw their way in our defence. It’s a complete shambles that they totally disregard our position and individual cases.

    The postman still comes and when I hear the van and then our post box I shudder; I have not had a proper nights sleep in years and I worry each and every day if this is the week I get hit hard and have to find monies I just don’t have. HMRC have turned my life into a misery as I am not knowing what is going to happen; we are all tax paying citizens and we all deserve a fair and equitable hearing and one that will provide closure in a positive way so we can piece back together our lives and get back to being families with lives to lead, in an enjoyable manner, something that HMRC have taken away.”

  • Pension Liberation Costs

    Pension liberation fraud costs victims £millions every year.  It ruins lives and causes desperate poverty in retirement.  But the situation is made far worse because the State has badly miscalculated how much it will cost to support these victims for the rest of their lives.  The amount of tax actually collected will be far outstripped by the cost of support and healthcare.

  • CAPITA OAK PENSION SCAM

    Capita Oak pension scam: Imperial accounts 23.1.15

    Ark Class Action

    24 Calle Cuatro Esquinas, Lanjaron 18420, Granada, Spain

    angiebrooks@pension-life.com angiebrooks99@gmail.com

    0034674746663 (mobile) 0034858995645 (landline) www.pension-life.com

     

    Roger Chant, Director – Imperial Trustee Services Ltd.                                                                              28th January 2015

    Brian Downs, Downs & Co Accountants

    Imperial House

    21-15, North Street

    Bromley BR1 1SD

     

    Copies to:

    Pensions Ombudsman; Pensions Regulator; D.S. Rob Harvey, Economics Crime Unit; Dalriada Trustees; FCA; TPAS; HMRC; SRA; ACCA; Iain Duncan Smith (Minister for Work and Pensions); Steve Webb (Minister for Pensions); BBC; ITN; Daily Mail; The Times; Insolvency Service; members of Capita Oak and Westminster pension schemes.

     

    Dear Sirs

     

    CAPITA OAK AND WESTMINSTER PENSION SCAMS

     

    The responses below (in bold) to the “announcement” and “financial report” purportedly from Roger Chant of Imperial Trustee Services Ltd. (ITSL) must be taken into context with the Westminster pension liberation scam operated by those who set up, promoted and administered Capita Oak.

     

    “In the second member announcement, I indicated that I had authorised the preparation of a financial report, to be prepared by an independent registered firm of accountants, Downs & Co.”

     

    First of all, ITSL has no authority to issue financial reports or announcements. ITSL was apparently appointed as administrator in the invalid and possibly forged “trust deed” dated July 2012 and apparently signed by Alan Fowler and Karen Burton (although not in her handwriting but with a signature that looks suspiciously like the handwriting of Anthony Salih of Premier Pension Transfers. Downs & Co is not an independent firm of accountants. Brian Downs was brought on board on board by Christopher Payne (sole shareholder and at the time director of ITSL – but also owner/director of TKE Admin to whom the scheme fees were paid) in October 2014 to try to deflect the questions by Sean Hughes of the BBC X-Ray programme. Roger Chant was also already a client of Downs before he was appointed a director of ITSL. This could hardly be called an independent firm as Downs has admitted he is a “close friend” of Bill Perkins who acted as a shadow director of ITSL. A truly independent accountant and auditor need to be appointed in full consultation with the board of trustees and a proper forensic analysis done on all financial transactions carried out by ITSL, TKE Admin, Premier Pension Transfers and Metis Law, and reported properly to the members. Robert Stell is still happy to carry this out.

     

    “I have now authorised that a copy of the financial summary prepared by the accountants and certified by them should be distributed to all members. A copy of the certified financial statement is attached. Disclosure of the certified financial statement provides transparency to Scheme members.”

    The financial statement issued is far from complete, only covers the period to September 2013, and raises many questions. My specific queries on the accounts are set out below.

     

    “As stated in the second member announcement, it can be seen, quite clearly, that (other than the amount deducted for administration) the totality of the funds received into Imperial’s bank account were transferred, on the instructions of the directors at the time, to the account of a UK registered law firm, Metis Law, who are based in Leeds. This is evidenced by the bank accounts reviewed by the independent accountants.”

     

    Not evidenced at all because not reviewed by independent accountant/auditor – and the missing £1.22 million/47 transfers is still not explained. I have provided a complete schedule of all the transfers processed to Downs via Paul Thomas showing the transfers which were included in the £10,810,301.57 originally disclosed and the extra transactions which were not transferred to Metis Law to purchase store pods, but Downs has refused to acknowledge these missing transfers and provided no explanation. He has also refused to explain a number of suspicious entries on both the bank statements for accounts 03841928 and 83365921 (sort code 20-25-42).

     

    “In summary, 95% of the funds received into Imperial’s bank account in respect of Scheme members was transferred to Metis Law. The 5% deduction for administration was made, which deduction was clearly specified in the Scheme membership documentation signed by each member.”

    The members were clearly given the impression that the 5% was for administration, although 5% was grossly over-priced for a simple transfer for which no competent or diligent administration was carried out. I submit that this should be refunded to the members immediately by TKE Admin. The subsequent investment of 100% of the funds in Store First was clearly negligent and irresponsible, with no regard to the obligations for prudent investment principles required by law for a pension scheme.

     

    “My enquiries suggest that of the 5%, some 3% was applied to TKE Admin Ltd., who arranged for the administration and other necessary services. In this regard, it should be noted that there is no annual administration charge applied to your funds within the Scheme. The remaining 2% was directed by the directors at the time to be paid to Mr. GS.”

     

    What “other necessary services”? The only necessary service was to ensure that the funds of the scheme were properly invested and the scheme run responsibly with a view to providing retirement income for the members, rather than just fees and commissions for the operators/promoters of the scheme. This requires further explanation and complete disclosure of exactly who was paid what and why. It was agreed between Perkins, Fowler and Mr. G.S. that 3% would go to towards “processing” with Stephen Ward of Premier Pension Solutions SL and Premier Pension Transfers Ltd receiving £250 per transfer. So where did the remaining 2% go and to whom was it paid? It is not accounted for. The statement that “no annual administration charge would be applied to the scheme” also needs explaining. How would the scheme be administered going forward for years to come? This suggests there never was any intention to manage the scheme properly in the long term and deal with members’ interests (such as retirement, transfers out, death of members and also diligent control of the assets and income). It is clear that the high level of up-front fees were intended as a quick way for the organisers of Capita Oak to earn a large amount of fees and then abandon the scheme altogether and ignore the many appeals by members for information, accounts, and data on the scheme and the investments. This includes Mr. X whose case was investigated by the Pensions Ombudsman who found ITSL guilty of mal-administration and referred to Capita Oak as being typical of a pension liberation scheme and organized crime.

     

    No mention has been made as to who has provided “services” to the scheme or in what capacity. Full disclosure and complete transparency is now formally requested as to who was behind these services and what services were provided. There has not been any evidence of any service to the members – other than complete silence and refusal to communicate. The people behind Capita Oak have provided no accounts, no reports, no transfers, no asset valuations and have ‘lost’ £1.6 million in “guaranteed” rental income: the main selling point that convinced members to transfer to Capita Oak.

     

    “There is a further purpose that is served by distribution of the certified financial report. I had hoped to avoid drawing these matters to your attention, preferring instead to focus on material and factual matters. In summary, I have been made aware of a number of comments and statements (many anonymous, others adopting obviously fictitious names) having been made on various social media or similar sites. Apart from being grossly misleading and wholly without foundation, some of the comments and statements are, frankly, shocking, containing as they do lurid and defamatory statements against a number of persons, including some who have provided services to the Scheme. In particular, some of the statements make allegations as to financial impropriety.”

    There is clear financial impropriety. To suggest otherwise is ridiculous. Not only has there clearly been obvious “financial impropriety” but also obvious fraud on the part of the operators and promoters of Capita Oak. The statements clearly and transparently made by me contained facts and hard evidence on the WhoCallsMe forum.

    http://whocallsme.com/Phone-Number.aspx/01516680386/120#p831709128742963577

    Various other contributors have posed as me and Downs using fictitious names, but although some have clearly sought to disrupt the flow of genuine information, there has been some valuable information provided about the activities of Perkins, Fowler and Downs. I stand by everything I have said on the forum and have always stated that if evidence can be provided that I have been mistaken I will gladly make a full retraction and apology. The only connected individuals I have ever communicated with have been Downs, the individual operating the Thurlstone loans and members of the Perkins/Fowler/Ward team who are disgusted at the wholesale defrauding of victims in Capita Oak, Westminster and other scams. I have also communicated extensively with Metis Law and JWK Solicitors acting for Toby Whittaker, but they have both now “pulled up the drawbridge” as they are now in contentious communication with each other.

     

    “As can be seen from the certified financial statement enclosed with this announcement, all monies transferred into the Scheme referable to members have been fully accounted for.”

    I refer to my previous comments about an independent auditor, only then will the members be satisfied that all monies have been accounted for. There is evidence that there is still 1.22 million missing and unaccounted for, with several members having confirmed that their funds are amongst the missing funds. In other words, members have transferred their pensions and yet these transfers are not on the list of transfers that went to Store First via Metis Law. The 100k paid to Thurlstone (which operated the pension liberation loans) remains unexplained, despite my asking about this repeatedly. Now, presumably, the 100k is hidden within the administration expenses. Further, my specific accounts queries below need to be addressed immediately.

     

    “It should further be noted that the certified financial statement was prepared with the independent accountant having been provided with copies of the bank statements for Imperial’s bank account. In view of this, I again ask that members rely solely on official announcements and information issued by Imperial and to ignore comments and statements issued by others, some of whom it must be assumed have ulterior motives.”

     

    The question remains: why did Downs refuse to provide the bank statements to the board of trustees? Further, I repeat, Downs is NOT independent. And this “financial statement” is far from complete and transparent as will be seen from my comments on the very incomplete “Analysis and Summary of Bank Account”. The question: why were the limited accounts only made up to September 2013? must also be answered. I would also like a proper explanation as to why the appointment of a truly independent (not previously connected with any of the parties who operated and/or promoted Capita Oak) accountant/auditor, Robert Stell, was rejected.

     

    “My enquiries, through my professional advisers, as to the investments made with the funds transferred to Metis Law are continuing.”

    I think at this point we have got to cut through all the obfuscation and ask who this communication is actually from? Imperial has had various directors since July 2012: Christopher Payne; Karen Burton; Karl Dunlop; Maria Orolfo (nominee in Dubai with false address in UK); me (immediately removed by Christopher Payne as I predicted); Christopher Payne (again); Roger Chant. Why so many directors? Why do they keep resigning? Why did Payne – the sole shareholder – resign from his own company? Then re-appoint himself and remove me? Why do the shadow directors Bill Perkins and Alan Fowler fail to appoint themselves as directors? Perkins, Fowler and Ward were clearly behind Capita Oak and Imperial Trustee Services. Ward had details not only of Capita Oak on his system but also of Westminster – which had the same sponsoring employer – RP Medplant in Cyprus (but whose assets have totally disappeared, totaling between 3m and 7m and clearly also run by Fowler and Salih). Although this letter appears to have been written by Roger Chant, why would a complete stranger, previously unconnected with ITSL and/or Capita Oak elect to be a director in the full knowledge that ITSL is in serious trouble over a fraudulently-operated pension scheme with compromised assets and stolen income? And why have neither Perkins nor Fowler appointed themselves as directors instead of Roger Chant?

     

    It must further be raised that Imperial (and the directors/shadow directors/shareholder) were entirely legally responsible for the set up, structure and operation of the scheme, as well as the illiquid investments in Store First. Christopher Payne – the founding director and sole shareholder of Imperial (as well as TKE Admin to whom the “administration” fees were paid) was clearly heavily involved from the start and is well known to Downs, so why does this letter seek to create the impression that investigations are required? Perkins, Ward and Fowler know everything about the Capita Oak scheme so why don’t they just come clean? 

     

    “I will authorise the preparation and distribution of a further announcement regarding the Scheme’s investments as soon as possible.”

     

    Further “announcements” will have much greater credibility if they are issued by the people who operated Capita Oak: Perkins, Ward and Fowler, rather than an un-connected person who has had no experience of the scheme and whose sudden, unexplained appointment as director appears to be a rather ham-fisted attempt to shield Perkins’, Ward’s and Fowler’s responsibilities and culpabilities.

     

    “I am also seeking information regarding the investment return that was due on the investments.”

     

    This statement unfortunately stretches credibility beyond the limit and is also insulting to the intelligence of the members. Perkins, Fowler and Ward devised and operated the scheme and Craig Hollingdrake of JWK Solicitors, acting for Toby Whittaker of Store First, confirmed to me that the 8% “guaranteed rental income” was paid to Transeuro Worldwide Holdings on the instructions “of the people operating Capita Oak”. According to the BBC, Toby Whittaker himself also confirmed this to the BBC investigating journalist. Let us be clear, the investments in Store First were done with the explicit intention of extracting the 30% introduction commission for those directly and indirectly connected with ITSL – not providing a secure retirement investment or income for the members. ITSL’s directors and shadow directors never intended running a long-term pension scheme for the benefit of the members: if they had, they would have invested the funds in diverse, prudent, liquid assets to provide for transfers, retirement and death. To claim to be “seeking information” is just nonsense. If the rental income of £1.6m has been stolen, then Chant and Downs have a duty to report the matter to the police and provide them with all the evidence. Have they done this?

     

    “Currently, and it must be stressed subject to confirmation, the position appears to be that the funds transferred to Metis Law (from which it can be expected that legal fees will have been deducted, but again that has still to be confirmed) were subsequently applied in the purchase of commercial property, principally storage pods with a company called Store First. These investments appear to have been made at the direction of the directors at the time. The former directors who were in office at the time that Scheme assets were transferred to Metis Law and/or were applied in the investment of those assets appear to be a Mr. Karl Dunlop and a Ms Maria Orolfo.”

     

    “These investments appear to have been made….” This is an unbelievable statement. A quick phone call to Metis Law would clear that up, though the fact that that current director of a pension scheme is not sure is damning in the extreme. The directors at the time were Christopher Payne, Karen Burton and Karl Dunlop – so what questions have been asked of them? And why did they resign? Metis Law confirmed that they were instructed by Karl Dunlop. Reverting to my previous comment above, the writer appears to express surprise at the position regarding the investments and the activities of Metis Law. ITSL was the “administrator” and instructed Metis Law. If (and it is a BIG if) Chant has no communication with Payne (who instructed Downs in the first place), Dunlop, Burton and the shadow directors Perkins, Ward and Fowler, why doesn’t he ask them? Why doesn’t he ask Ward whose 31 Memorial Road address was used as the Capita Oak address? Why doesn’t he ask Whittaker whose Goodlass Road address was subsequently used? Why is he purporting to “seek” information when the various parties who operated Imperial/Capita Oak are right under his nose?

     

    I have already sent in a much more complete set of accounts than the one submitted by “Chant” showing what was paid to Metis Law and TKE Admin but this was ignored by Downs and those instructing him. The investments were clearly made at the direction of those who set up, promoted and operated the scheme i.e. Perkins, Fowler and Ward. If another party had instructed the purchase of the pods or any other transaction connected with the scheme, this does not absolve the directors or shadow directors of legal responsibility and accountability.

     

    “Should any members have information as to how (and by whom) they were made aware of the Scheme, or if members have details of any promotional material or statements made (including, but not limited to, those regarding any investments and the expected return on investments) it would be appreciated if members could provide a copy or details to Imperial, either by post or by email. This information may assist in the enquiries being undertaken by my professional advisers.”

     

    This is an admission that the scheme has no idea how it was promoted to its members. I suspect that the director’s advisers are looking for evidence that the agents and promoters of the scheme are guilty of misleading statements to deflect the blame from those that set up the scheme itself. Many members have written and emailed “Imperial” and been denied any kind of response for many months. Indeed the Pensions Ombudsman has declared that this constitutes mal-administration over a prolonged period of time, and has described the scheme as typical of pension liberation and “organized crime”.

     

    “In response to the second member announcement, a very small number of members have enquired about, or have requested, a transfer payment to another scheme or arrangement. Until full details of the location, security, liquidity and value of the Scheme’s investments, and the investment return paid on those investments, is fully understood, in the short term it is not possible for transfer values to be quoted or transfers to be made. Naturally, as soon as it becomes possible, we will advise members as to next steps regarding the availability of transfers.”

     

    This statement really does again stretch credibility to the limit, and beyond. Could we have confirmation how many have enquired? It is surprising that only a very small number want to transfer out. The directors and shadow directors of ITSL clearly set up and ran this scam. They instructed Metis Law to effect the purchases of store pods using virtually 100% of the members’ funds, instructed Store First to pay the 8% 2-year guaranteed rent to Transeuro Worldwide Holdings Ltd., and operated the Thurlstone pension liberation scam. So how can they not know? It defies belief. The very fact that this letter appears to be trying to create the impression that ITSL was not responsible for everything that has gone wrong is damning in itself. Also, the fact there is no liquidity for transfers out, demonstrates again that this scheme has not been managed for the benefit of the members.

     

    “Please be assured that Imperial continued actively to pursue all matters relating to the Scheme, with the best interests of the members its paramount aim.”

     

    Am not sure any of the Capita Oak victims will believe this statement, having seen that they have been scammed out of £10.8 million (plus the £1.22 million missing transfers), as well as ITSL failing to account for the missing £1.6m rental income.

     

    “This is being done within the very limited funds available to Imperial.”

    Bearing in mind ITSL charged 541,775.51 by its own admission, according to the “financial analysis” reported by Chant, I would have thought Imperial had plenty of funds to “actively pursue” these matters. (Plus the 70,162.19 they are supposed to have as a “balance” which should be held in cash. Plus the 31k that Metis Law are sitting on.)

    If the funds are limited, how was the scheme ever going to be administered going forwards? Not only do we not have audited accounts, there are no individual statements for members. Why were the funds not segregated into individual accounts? It is not just a question of illiquid assets, the scheme cannot even tell an individual what the transfer value is in the first place. A shocking state of affairs that has not been addressed. Why not?

     

    “ITSL c/o Downs & Co

    Signed Roger Chant”

     

    PURPORTED “ANALYSIS AND SUMMARY OF BANK ACCOUNT” BY IMPERIAL

    Transfers Received: 10,835,510.21 (why is this 25,208.64 greater than stated in the original Imperial accounts and where is the missing 1.22 million made up from 47 transfers?)

    Interest Received: 832.11

    To open account: 75.00

    TOTAL: 10,836,417.32

    Pension cash lump sums: 82,911.31

    Bank charges: 812.33

    Administration fees: 541,775.51 (why did the original Imperial accounts state 441,751.85 and does this revised figure include the 10k paid to Christopher Payne when Barclays realised that ITSL was operating a scam? And further, does it include the 100,557.58 paid to Thurlstone by Metis Law?)

    Pensions Regulator: 157.71

    Metis Law re investment: 10,140,598.27

    Balance held by ITSL: 70,162.19 (does this include the 31k held by Metis Law which they are refusing to release?)

    Where are the following items in the financial statement?:

    9,828,750.00 paid to Store First – of which 30% was paid in introduction commission

    2,948,625 paid in commission (to whom?)

    647.00 in bank charges

    720.31 in courier services

    61,172.98 in fees to Metis Law

    3,990.00 to Harper McLeod

    1,696.00 in indemnity insurance

    12,370.00 in Land Registry fees

    5,194.20 to SDLT

    94,165.00 to Stamp Duty

    100,557.58 to Thurlstone

     

    It must be clearly declared that taking into consideration the 30% introduction commission and the 8% “guaranteed rental income” that in fact Imperial effected payment of 9,828,750 for property which was worth 46% less than the purchase price at the very least (and which may have a zero re-sale value). Furthermore, aside from the 5% “admin fee” paid to Imperial/TKE Admin, a further 179,955.29 in assorted costs added to the dilution of the value of the transfers.

     

    Finally, kindly respond to the following by return:

    1. Comments are sought on the invalid and forged “trust deed” which appointed ITSL as administrator but not as trustee. The signatures look like they could be Alan Fowler and Karen Burton (although it is not the same signature as Karen Burton used to sign letters to Capita Oak members and the handwriting is identical to that of Anthony Salih of Premier Pension Transfers at 31 Memorial Road, Worsley). Why were the signatures not identified, dated and witnessed? And why was no trustee appointed? Where is the original, witnessed trust deed?
    2. Who registered Capita Oak with tPR and HMRC?
    3. Why were the pods registered in the name of ITSL (as trustee of Capita Oak) when it was not the trustee? This means that the Capita Oak scheme is not the legal owner of the pods, but ITSL is. How will HMRC treat this?
    4. Why were the Barclays Bank accounts in the name of ITSL/Christopher Payne and not ITSL/Capita Oak?

     

    A full and prompt response to the above queries would be much appreciated. This letter is being copied to the Police Economics Crime Unit, the Pensions Regulator, the Pensions Ombudsman, the Insolvency Service, the members, the press as well as the SRA and Mr. Downs’ professional body.

     

    Angela Brooks

    Chairman – Ark Class Action

     

  • CAPITA OAK PENSION SCAM: BBC Radio 4 You and Yours.

    toCapita Oak pension scam: hundreds search for pensions they transferred after cold calls.

    In a special You and Yours, we investigate a web of companies that sold millions of pounds of pension investments to hundreds of people – and has left many of them desperately trying to find out where their money has gone.

    Click here to listen to the programme.

    Liberating Pension Pots:

    LIES, FRAUD AND FORGERY

    STORE FIRST/CAPITA OAK/IMPERIAL TRUSTEES AND VARIOUS SIPPS

    Shari Vahl – BBC Radio Four You And Yours 20.10.2014

    Transcribed by Angela Brooks, Chairman – Ark Class Action 20.10.2014

    (comments in bold by AB)

     

    Store First is doing really well.  Next year it is expected to open more of its self-storage warehouses.  It has celebrities such as Quentin Wilson recommending people invest in its storage units. Wilson claims: “I’ll be honest, I like it so much, I’ve got one myself.”  The BBC has spoken to some of the people who sold the Store First investments.  They told Shari how they lied, as well as forged documents and signatures to make sure that pension money was moved from secure schemes into Store First.  One salesman said: “I feel kind of sick to the stomach that I had transferred pensions from an elderly lady who completely trusted me.  I played with her dog.  She made me cups of tea.  She gave me biscuits.  I built trust with her.  And I don’t know if any of these people ever received any money.”

     

    The BBC’s You And Yours team devoted the entire programme to the thousands of people who invested millions of pounds in this one company: Store First.

     

    “I was asked by listeners to look into two Liverpool-based pension funds which had gone horribly wrong.  These were Capita Oak/Imperial Trustees (300+ members with total transfers of at least £10.8m) and Henley/Omni Trustees. £20 million of pension money had been invested in Store First but around 500 people hadn’t received the returns they were promised and now they can’t get their money.  The two pension funds were wound up in the High Court in 2015 and the judge described them as “dishonestly disadvantaging pensioners and sold on the basis of false representation”.  From the start, it was clear from the people who came to us that those two pension funds that the court wound up weren’t the only ones driving huge investments in Store First.  I’ve discovered another much bigger one marketed by the same Liverpool sales team, sending all the funds raised to Store First – a chain of storage warehouses.

    Alan: “I don’t suppose I’ll ever see that £140k again.  I don’t want other people to fall into the same trap.  Which they might do now with the new pension rules”.  Lolita: “This is the most appalling scheme I have ever heard of.  It is awful.  It is actually costing me money now.  I would never have agreed to this.”  David: “I’m annoyed with myself but I am even more annoyed with the people who took it off me.  £66k and I want it back”.

     

    “Those are three of the listeners that came to see us: Alan, David and Lolita.  They were promised big returns on their pension investments and access to a quarter of it, tax free when they reach 55.  They were told their money would go into Store First in 2012/2013.  He engaged a sales company in Liverpool to sell people the idea of investing their pensions into his company.  What the investors would get was a physical storage unit or pod and the money raised from renting out that pod (to people who wanted to store their stuff) is how they get the returns.  Or that was the promise.  The Capita Oak victims were also given non-repayable, interest free “loans” of 5% of the value of their pension transfers by a supposedly non-connected company registered in Gibraltar called Thurlstone.

     

    Quentin Wilson featured in the advert claiming a “guaranteed 8% for the first two years and up to 10% in years 3 and 4”.  This was due to rise to 12% by year 6.  So even people with secure, generous, final salary pension funds moved them into Store First.

     

    Alan, an ex postman, paid into the Royal Mail pension scheme: “I had about £144k.  These people came to me and said they could put it in a SIPP (Self Invested Personal Pension) and I’d get guaranteed returns on it”.  These people were the sales team based in Liverpool.  He believed the claims.  “I looked on the Store First website and they were predicting the same thing.  And then this guy Quentin Wilson doing a video about how it was the fastest growing market in the UK and predicted 85% profit in six years”.

     

    Alan and hundreds of others like him were really interested and excited by this offer.  Interest rates on savings were so low and they needed money.  The salesmen said they had “frozen” pensions from their old jobs just sitting there.  Lolita also took one of these cold calls from Jackson Francis – the Liverpool sales team.  We’ve obtained a copy of the script they used for the phone calls and it shows the cold callers described themselves as “pension specialists”.  Lolita was 36 when she signed up so she is much younger than Alan and she had £20k in a pension pot from her old job.  Jackson Francis asked if she would be interested in taking control of that fund and she said yes, she would be prepared to re-invest it somewhere so that it would be working for her and give her a good pension.  So she allowed Jackson Francis to transfer her old pension into a SIPP (really only suitable for people with lots of money to invest).

     

    David Griffiths did the same thing with his pension which had taken 20 years to build up working as a van driver for the Birmingham Post and Mail.  A salesman visited him and gave him a glossy booklet and told him it was a very good investment and many people had had their money back on it and the website looked kosher so he decided to go with it.

    For a lot of people the promise of a tax-free lump sum was a big part of it and they could have got that out of their old pension schemes, but they didn’t know that and Jackson Francis didn’t tell them that.  Other people just wanted to make their money work harder for them and get better returns.  This has been researched by BBC Radio 4 for more than a year after being contacted by desperate people who had not received their lump sums at 55, couldn’t contact the Liverpool sales team and were very worried.

     

    Several former Jackson Francis employees started to get in touch with the BBC and started to reveal what was really going on inside Jackson Francis.  They believe that Alan, Lolita and David and hundreds of others were lied to and defrauded.  One salesman said that the promise of getting 25% of the pension at age 55 was really the main bait.  “A lot of people, especially over 55, were struggling and that tax-free lump sum would have helped them out”.

    People who go into a SIPP are strongly advised to get independent financial advice.  The cold callers described themselves as “pension specialists” and offered a free pension review and Alan thought he was getting good advice.

     

    Under the rules, you can’t take out any part of a pension under the age of 55, and if you do move your pension pot, you should have a third party company regulated by the FCA in the middle to manage the pension pot for you.  So who managed the Store First investment?  A company in Leicester called Berkeley Burke (SIPP administration company) – unrelated to Store First and Jackson Francis and wasn’t paid by either of them but took on the majority of Jackson Francis clients – hundreds of them – and handled their investments into Store First.

     

    Berkeley Burke was happy to facilitate the transfers provided the clients signed to say they recognised the investment was high risk.  After a few months, Berkeley Burke wouldn’t take any more Jackson Francis clients unless those people had received independent financial advice.  Jackson Francis approached an IFA called Keith Popplewell, experienced in pensions, who was paid to help them.  They asked him to provide advice to their clients so he needed information from these clients but before he could give advice he needed Jackson Francis to do a questionnaire but he didn’t meet the people he was advising.  He didn’t speak to them on the phone either.  He just looked at the questionnaires returned by the salesmen and then wrote a financial report either recommending or not recommending they move their money into a SIPP.

     

    This is where the allegations of fraud and forgery really begin.  This is what one of the salesmen said about the so-called fact-finding questionnaires: “There was a series of boxes and you had to tick one.  It went from low to high risk and we were told by our bosses that people needed to be at the higher end or there wouldn’t be a transfer.  If the client didn’t want to be high risk, they were told they would have to leave the pension where it was.  Another salesman reported it was more than just scaring people “When I was training I went out with one of the field agents.  He filled in the form before he went into the client’s house and ticked the box to say the client did have an appetite for risk before meeting him.  Clients did not see a copy of their reports.  Keith Popplewell claims he never recommended anyone in a final salary scheme to transfer into a SIPP.  Even clients whose reports said the pensions should not be transferred were still transferred and did not even see the report from Popplewell.

     

    One salesman witnessed another salesman signing pensions transfer paperwork himself and filled in the fact-find questionnaire himself.  Another salesman reported that this was routine and that the salesmen would sign the forms rather than the client.  In other words, forging signatures.  You would see them practising on a piece of paper until they got it right.

     

    Jackson Francis was a “machine” that drove £100 million into Store First.  The salesmen did not know about the level of commission paid by Store First.  Over two years, Store First paid £33 million to a mysterious company called Transeuro Worldwide Holdings and it worked like this: every time an investment was received into Store First via the Liverpool sales team, Store First would pay Transeuro a commission of 30% or 46%.  So when Alan put his £141k pension from the Royal Mail into a SIPP and that went into Store First, Transeuro was paid nearly £65k – 46% commission.

     

    The government took Transeuro to the High Court to wind it up in the public interest after complaints from people who had been persuaded to move into two other pension funds also invested in Store First and millions of pounds are also missing from those pensions.  Up until that court hearing, it was really hard to see who really ran Transeuro.  It seemed to be based in Gibraltar and was shrouded in layers of nominee directors in the Caribbean and Central America and at the winding up hearing the court forced Transeuro’s solicitors to name the man in charge.  That man is Michael Talbot who all the Liverpool salesmen believed was their boss.  The man they described as having the big glass desk in the Speke office; the quiet man who hired and fired; the man with the chequebook.

     

    But in a letter to the BBC from Talbot’s lawyers, he denied he ran the Liverpool sales operation or Transeuro Worldwide Holdings.  He claimed his role was IT and databases and he told the BBC that at his garden gate in 2014.  Talbot is 42, from the North of England and he used to be a nightclub promoter, married with two children.

    Transeuro used £5m of the £33m they were paid to run the Jackson Francis operation and for buying in names of potential customers; they rented offices in Speke.  Mike and Stuart would often roll up to the office in Ferraris and Rolls Royces, a Porsche, all owned by Store First.  These offices were called Business First and Jackson Francis worked from there.  Store First owned all the cars that the salesmen used to drive to visit clients and provided all the glossy brochures, and the product knowledge training for the sales team.

    We can’t say that the investors have lost everything because they still are the legal owners of these storage pods.  Quentin Wilson promoted the “exit strategy” as being able to “bail out at any time without cost and can sell to Store First who have a guaranteed buy-back scheme or you sell to another investor”.  But Store First told one investor “on the fifth anniversary if you request for Store First to buy your pods back and if this is agreed then Store First have a further five years to complete the buy back”.  And over that time you have to pay another five years’ fees and management costs.  SF claimed it could organise an “in house” sale and sell the storage pods to someone else and make the original investor a profit of 25% but simultaneously offer a 25% discount on a new one.  Why would anyone buy a second-hand unit for 50% more than a new one?  It has been three years since Alan asked Store First to his sell his units and so far nobody wants them.  Nobody has bought David Griffiths’ pods either.

    BBC went to speak to Mike Burkey at Andrews Estate Agents in the Wirral and he said they had one on the market for £15k in February.  They dropped the price in June to £9k as interest was minimal.  The realistic price could be £5k and they charge a flat fee of £1k plus conveyancing fee of about £600.  So after total fees of around £1800 the seller might walk away with £3.5k.  Other estate agents tell the same story and one said they thought the investors had been “stung”.  A major auction house had 9 pods for sale from the Blackburn site.  The auctioneer started at £10k but there was not one single bid.  No-one out of the 400 people in the room showed even a flicker of interest.

    The original investors were shown a valuation by a chartered surveyor and the BBC asked him how he had calculated the market value and he said it was a sum based on how much rent the pod would generate.  He was then asked where he got the rental figures and he said “Store First”.  He was then asked whether he checked those figures to prove those rents were coming in and he said “no”.  When the Capita Oak store pods were purchased in 2012/13, the solicitors used for the conveyancing – Metis Law – were specifically instructed not to get valuations for the pods they bought using £10m of funds from the Capita Oak members.

     

    “As a matter of policy, Carey Pensions use a conservative valuation estimate for Store First storage units of 50% of the original purchase price in preparing annual SIPP reports”.  This was a letter sent in 2015 to some Store First investors telling them their investment is worth half what they paid.  When asked why the value of the investments had dropped so much they didn’t answer.

    Store First claims it has 5,000 investors who have put £250 million pounds into Store First.  Tom McPhail of Hargreaves Lansdown says the way these investments were sold was wrong because unregulated advisers were selling high risk investments with financial advisers signing off risk profiles that were inappropriate and then people buying into unregulated high risk investments and people who should never have been moved out of final salary schemes and unregulated investments shouldn’t be in the SIPPS at all in the first place.

    The BBC tried to get in touch with the SIPP administrators Berkeley Burke, regulated by the FCA, but they didn’t respond.  Carey Pensions did respond saying that they did do checks in line with FCA regulation and that they are happy.  The Self Storage Association says that the figures that Store First are putting out are not viable and they got an independent report from Deloittes who confirmed the initial suspicions that the promised returns are unviable from a self storage business and there were two similar operations in Australia that failed and the investors were left out of pocket.  There is very little, if any, market for re-sold units.  Tom McPhail says there is very little avenue for compensation for the investors.

    Quentin Wilson states he has asked Store First to remove the videos from their website and he has confirmed he has received no income from his pod.

     

  • BBC News England – Meet the pension liberation fraud victims.

    BBC Inside Out investigates a new cold-calling practice involving pension liberation fraud which is taking place across England.

    Liberating your pension

    Click here to watch video

    Pension liberation fraud has been reported widely in the press, on t.v. and on radio for several years.  The Inside Out documentary showed how easily victims are scammed by the teams of scammers.  The Ark Class Action, led by Angela Brooks, filmed part of this programme at the BBC studios along with a financial adviser and solicitor.

    Interestingly, Andrew Isles, the accountant who helped design and set up the Ark schemes, took part enthusiastically in the filming.  The BBC team did some secret shopping of their own, and uncovered another pension liberation scheme run by George Frost – former Chairman of Canvey Island Football Club.  Frost’s scheme invested victims’ pensions in “truffle trees”.

  • 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

  • Ark, Evergreen Retirement Trust QROPS and Marazion Timeline

    Note similarity between the Marazion and Perpetual logos!

    ARK DISASTER – MARAZION/EVERGREEN PENSION LOAN SCHEMES:

    TIME-LINE

    ARK CLASS ACTION

    An Ark victim has suggested it would be a good idea to do a full update so everybody knows the entire story so far.  I agree that’s a good idea so here is a brief outline of where we are and how we got here.  If anyone has any questions or wants further information the Ark Class Action can be contacted on arkmarazion@gmail.com.

    2010: a group of investors got together and purchased a plot of land in Larnaca, Cyprus for 1 million pounds.  With the intention to try to turn it into a golf course.  Only they needed more land and more money.  So they consulted a group of “experts” who came up with the idea of attracting investment by starting a pension scheme.  Now, pensions are supposed to be LOW RISK. And diverse. Speculative land development projects are NOT a good idea for a pension (due to being high risk).  Financial advisers are supposed to know this and are not supposed to advise their clients to put their hard-earned pensions into a scheme based on a potentially worthless piece of land.

    OFFICIAL TIME-LINE 2010: Ark was formed by a group of “experts” and the worthless piece of land originally bought for 1 million was sold to Ark for 4 million.

    August 2010: Ark’s “Master Pension Schemes” (MPS’s) were aggressively promoted and sold by a clutch of financial advisers in Spain and the UK using pension liberation (also known as pension cracking or unlocking) in a scheme described by the promoters as “not traditionally available” (in other words unlawful). This “unique” process was called Maximising Pension Value Arrangements (MPVA) and facilitated a loan to the participant of up to 50% of the value of the transferred pension (after deduction of fees which ranged from between 5% and 15%).

    2010 to 2011: The Ark schemes began advertising and were sold through newspaper ads, websites, calls from financial advisers, seminars and advertisements posted on toilet doors.

    May 2011: The Pensions Regulator were actively shutting down pension liberation scams such as Ark and placed the six Ark schemes in the hands of Dalriada Trustees and the whole lot was suspended. The Regulator was actively promoting its “Scorpion” campaign to warn people about the dangers of pension liberation fraud. http://www.hmrc.gov.uk/pensionschemes/investments-tax.htm. HMRC also set up “Project Bloom” to help stop these scams due to the fact that the victims stood to lose their pensions AND get 55% plus tax bills on their pension loans. http://www.hmrc.gov.uk/pensionschemes/liberationud.pdf

    December 15th 2011: Justice Bean ruled in the High Court that the Ark schemes (MPS’s and MPVA’s i.e. pension transfers and reciprocal loans) were a “fraud on the power of investment” and that the loans constituted “unauthorised payments” (i.e. taxable at 55%). The ruling can be read here – note Clause 57: http://www.professionalpensions.com/digital_assets/3826/4568_001.pdf

    December 1st 2011: Evergreen Pension Scheme was established in New Zealand

    December 20th 2011: Marazion was incorporated in Nicosia, Cyprus.

    June 2012 Evergreen Pension Scheme commenced trading – making a loss in the first year and attracting 426 members

    August 2012 Marazion started selling five-year term loans and corresponding five-year “lock ins” to Evergreen pension transfers

    19th November 2012 HMRC suspended Evergreen from their QROPS list http://www.evergreentrust.co.nz/uk-pension-transfers/

    December 2012 Dalriada published the first year’s audited accounts (for the period May 2011 to May 2012) for the six MPS’s: Cranbourne Star, Tallton Place, Grosvenor, Lancaster, Portman and Woodcroft Dalriada’s audited accounts for the six Ark schemes for the first two years can be found here: http://dalriadatrustees.co.uk/ark/

    September 2013: The Ark Class Action was set up to help inform the Ark victims and negotiate and appeal their tax liabilities so that these (together with their pension losses) can be reclaimed from the negligent financial advisers who sold the Ark schemes to the victims .

    March 2014: HMRC finally agreed to confirm their full intentions regarding taxing the Ark loans.

    April 2014: HMRC finally confirmed their intention to try to tax the loans at both ends i.e. 55% at the receiving end AND 55% at the making end.  They also confirmed that Ark members who did not receive a loan would still be taxed at 55% for making a loan or intending to make a loan, and/or intending to receive a loan.

    Between 2012 and 2014 (to date), some Ark members have received demands by HMRC to complete Self Assessment returns declaring the Ark unauthorized payments for tax purposes; some members have received demands for the tax; some have received nothing at all, but HMRC have confirmed that the letters and demands are now on their way.  However, there really has been no consistency in their approach to the whole Ark matter, but they do now appear to be getting their act together.

    June 2014: Evidence regarding the Marazion/Evergreen pension liberation fraud was handed to the British authorities in London.

    June 2014: HMRC has issued a deadline of 30th of June for return of the 10 point questionnaire required in respect of the Ark loans.

    Any questions, just ask.  Angela Brooks

    [contact-form][contact-field label=’Name’ type=’name’ required=’1’/][contact-field label=’Email’ type=’email’ required=’1’/][contact-field label=’Website’ type=’url’/][contact-field label=’Comment’ type=’textarea’ required=’1’/][/contact-form]

  • Ark Disaster – Dalriada Accountable for Strategy

    Ark Disaster – Dalriada Accountable for Strategy

    Dalriada – accountable for strategy

    Need a bigger ark for the Ark Pension Disaster…

    Mark Atherton of The Times wrote:

    We have tried to establish who should take responsibility for the financial disaster which befell investors in the Ark pensions “liberation” schemes. They were suspended in May 2011, leaving hundreds of investors facing ruin after being hit with a punitive 55 per cent tax penalty on the so-called “reciprocal loan” payouts they were given.

    Yet when you talk to the people and organisations involved about who should carry the can for the Ark debacle the response of everyone, from those who originally marketed the schemes to the regulators and the watchdog, is a firm: “Not me, guv.”

    None of this is much help to Ark victims such as Neale Morgan, who invested his money in good faith after checking that the schemes were properly registered and yet now finds himself being punished by the taxman for participating in a scheme which the revenue itself had previously registered.

    The revenue and the pensions regulator have, since October 2013, tightened up the registration process for pension schemes — a tacit admission that the system in place at the time of the Ark fiasco was inadequate.

    It seems unfair that the revenue is now hitting those people who invested in the Ark schemes with severe penalties, while not going after the people who profited from the scam. As Mr Morgan says: “The authorities seem to be punishing the victims, while letting the perpetrators go scot-free.”

    The revenue and pensions regulator should start turning the spotlight on the perpetrators, while the Financial Conduct Authority should launch a full-scale investigation into the Ark collapse and name, shame and punish those found guilty of wrongdoing.

    What is a Pension Scam?

    At the same time, the revenue should consider tempering justice with mercy in the case of the Ark victims. Many of these people were given false assurances that the schemes were viable.

    In most cases they have spent the lump sums that were “unlocked” from their pensions, often on settling debts, and they simply have no money left to pay the revenue’s penalty fees.

    Sadly, the Ark disaster is not an isolated event. Every month brings news of fresh pensions “liberation” cases and the scammers are likely to be gearing up to take advantage of the confusion surrounding next year’s relaxation of the rules governing how you can take your pension cash.

    The message to ordinary investors is a simple one — be alert to anyone promising you easy money if you transfer your pension to an unknown scheme.

    Your default position when confronted by any smooth-tongued salesman should be: “Why is this person lying to me?”

    Ark was an appalling disaster.  It has cost several people not just their life savings but also their lives.  It really is time to make sure that the Pensions Regulator doesn’t just mouth the words “scammers are criminals” but also make sure they are prosecuted.

    What is a Pension Scam?

  • 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.