Tag: Portman

  • 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.

     

  • A Day – a Starting Point to Understanding How you got scammed out of Your pension

    A Day – a Starting Point to Understanding How you got scammed out of Your pension

    A DAY – The WHEN, WHAT, WHO, HOW, & WHERE

    Pension tax simplification, often simply referred to as “pension simplification” and taking effect from A-day on 6 April 2006 was a policy announced in 2004 by the Labour government to rationalise the British tax system as applied to pension schemes.

    The aim was to reduce the complicated patchwork of legislation built up by successive administrations which were seen as acting as a barrier to the public when considering retirement planning. The government wanted to encourage retirement provision by simplifying the previous eight tax regimes into one single regime for all individual and occupational pensions.

    What happened after A day ?

    The first thing to understand is that retrospective legislation is not desirable and would be open to challenge. In other words, many of the previous pension regimes provided better pension options than the new simplified rules. In these cases, investors were allowed to keep the previous benefits earned before 2006, with only their post 2006 benefits being automatically affected.

    In practice, this means those with a foot on either side of 2006 can opt for the post 2006 on all their benefits if this suits them.

    A word of caution

    We would refer to A Day as adding a layer of simplification, not removing previous layers of complication. The interaction of the new rules and those with protected benefits – both pre 2006 and after – is extremely complex and the advice requirements are stiff.

    Who are the players in pension transfers?

    Outside the UK, any man and his dog can claim to be a pensions expert. Of course, there are genuine pension specialists outside the UK who have the necessary competencies to undertake pension transfer advice. The public need to undertake their own checks on their advisers to make sure they are regulated and qualified.

    In the UK, this is straightforward. The FCA register shows the permissions of each firm.

    Outside of the UK, advisers do not need any qualifications if they only undertake money purchase transfers or transfers with guaranteed benefits valued at lower than 30,000 GBP.

    For transfers of schemes with guarantees (such as final salary schemes and policies with guaranteed annuity rates) that are valued over 30,000 GBP, then only a UK IFA with the correct FCA permissions can advise.

    However, many money purchase schemes that do not require qualifications for transfer advice also straddle the pre 2006 and post 2006 rules. Namely, occupational money purchase schemes such as CIMPS/COMPS, Sec 32, EPP and SSASs. An unqualified adviser is unlikely to know all the rules and transfer advice may be inappropriate from such an individual.

    To be safe, people should only take advice from holders of AF3 and G60 pension qualifications – always ask to see the adviser’s certificate.

    Who are the regulators of pensions

    In the UK, there are two:

    Financial Conduct Authority – FCA – for personal pension schemes

    The Pensions Regulator – TPR – for company pension schemes

    Outside the UK, not all jurisdictions have pension regulators and, even if they do, if the pension is not a local pension it will not be of interest to the regulator (i.e. someone living in Spain with a pension in New Zealand, where the advice was given in Spain, is unlikely to get much help from the regulator in New Zealand).

    Pension Scams

    Since A Day, the old HMRC approval system came to an end. Each scheme is now registered only and not approved in any way. Thousands have been registered, many of them being bona fide schemes, but also – because of the absence of due diligence by HMRC and tPR – many also being bogus and/or scams.

    A Day opened the door to unethical salesmen and scammers to set up fraudulent schemes with the sole intention of stealing pension funds or milking victims for fees with ludicrously high commissions on toxic and illiquid investments. Often, the assets are high risk and toxic and the victims face a total loss. If the advice was unregulated, there is no recourse to the Statutory Compensation Scheme (FSCS).

    Cartoon blog – Don’t be the next pension scam victim

    Pensions were also targeted for liberation scams. Here the promoters provided “loans” to members from their own scheme or from an associated source, or just cashed in part or all of their pension prior to the age of 55. Many thousands now face financial ruin as HMRC will tax them 55% of the funds they took early (unauthorised payment tax). Despite the fact that the investors acted in good faith and were the victims of fraud as well as negligence on the part of HMRC, tPR and the ceding providers, HMRC will still make every effort to enforce the tax.

    Meanwhile, the government sits idly by and does nothing. Pensions Minister Ros Altmann merely says that the victims are “fools”.

    International Investment interview with Pension Life´s Angie Brooks

  • 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.