Tag: Toby Whittaker

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

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

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

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

Katar Investments state:

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

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

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

Gatwick – Apart Hotel – This is a serviced apartment/Hotel investment with a minimum investment of 72,500 GBP. The figure states “from”, so I assume you can throw a bit more in for good measure. The promised outcomes:
- 12 Months rental paid in advance
- Rental protected by Insurance
- 5 Years Rental 8%
- 2% profit paid on exchange deposit during refurbishment
- 7 days free stay subject to 1 months notice
- Buy back at 110% after 10 years
- 40% Finance on units over £140,000
- Luxury furniture pack included with every purchase
- Completion date: March 2019
This is a fixed term investment of 10 years and it has not been built yet (check the completion date). To me, an investment like this would ring alarm bells, as you are purchasing property that has yet to be completed. All sorts of hiccups could occur before the investment was up and running. An illiquid, high-risk investment, only for those who can afford a potential loss on the funds used.

Office investment in the Kingdon of Fife – Another illiquid and fixed-term investment, although slightly lower in price than the Gatwick offer.
- Structured exit plan at 10 and 15 years
This means your money is trapped for an awfully long time. If the market sways, you could be set for a loss and often with fixed-term structured investments there are fees and charges. Investments like this can, if they go wrong, result in you, the investor, falling into negative equity.

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

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

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

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

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

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

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

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

Meaning this is a fixed-term investment, with potentially no return for at least 4 years, if not longer, AND only if successful.
- Projected high returns: Target return of £50 per £1 invested (not guaranteed)
- EIS Tax relief: up to 50% income tax and capital gains tax relief. Remember tax rules can change and benefits depend on circumstances.
If it sounds too good to be true – it probably is. Plus this figure is not guaranteed and seems to me like it was just plucked out of the sky, nice and high, to lure investors in.

Airport Parking Investments,

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

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

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

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

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

John Rodgers wishes he had said no to the offers of Continental Wealth Management.
September 11, 2018
PHILLIP NUNN – SCAM OF THE YEAR – BLACKMORE GLOBAL

Pension Scammer Phillip Nunn receiving an award for “Entrepreneur of the Year”

Phillip Nunn has been reported to Action Fraud – which John Ferguson of Square Mile Financial Services describes as being “nobody and with no authority” – on numerous occasions by victims of various scams.

Phillip Nunn, cold caller and “fund manager” of the Blackmore Global investment scam, was given the Entrepreneur of the Year Award by JCI Manchester, but this was reversed shortly afterwards:

“JCI Manchester have today been made aware that an audit may be being carried out in respect of the Blackmore Global Fund. This was not information we were privy to before Phillip Nunn was awarded a ‘Manchester Young Talent Award’ this week.

If such an audit is being carried out, we will await the results of the same and we will consider any other information which comes into the public domain. Pending this, the JCI Manchester board have decided to suspend the award given to Phillip Nunn.”

MYT Phillip Nunn Award Retraction

“An independent panel of judges formed their own view on Phillip Nunn’s submission based solely on the written application received.”

I would love to read Phillip Nunn’s submission. It would certainly make very interesting reading. I doubt it would have included the fact that Nunn and his accomplice Patrick McCreesh were cold callers and lead generators in the Capita Oak/Henley Retirement Benefits/multiple SIPPS/Store First scam – which led to well over 1,000 victims losing over £120 million worth of pensions.

The Insolvency Service produced a witness statement which stated:

“Members of CAPITA OAK indicated they were initially contacted by Craig Mason or Patrick McCreesh of Nunn McCreesh of Its Your Pension Ltd and offered pension review services prior to them being referred to JACKSON FRANCIS or Sycamore for the transfer of their pension to CAPITA OAK.

On 3.3.15 I received an undated letter in which it was stated that Its Your Pension had not traded and was a dormant company and that Nunn McCreesh had traded as an insurance brokerage between 2009 and 2012 when they entered into a verbal arrangement with TRANSEURO where in return for providing pension leads to JACKSON FRANCIS they received a commission from TRANSEURO.

Nunn McCreesh provided JACKSON FRANCIS with 100-200 leads per month which were provided by email and/or telephone for which they received £899,829.86 from TRANSEURO during the period 26.3.12 to 14.5.14.”

Phillip Nunn’s lawyers, Slater and Gordon (funny that, also nominated for an award) tried to claim that Nunn McCreesh’s involvement in the Capita Oak scam was “minimal”. But I wouldn’t describe generating 5,000 leads, cold calling thousands of victims and being paid nearly £900k “minimal”.

On the subject of Slater and Gordon, earlier this year they threatened me with defamation proceedings for exposing Nunn’s scamtivities. It was curious that they couldn’t see any conflict of interest in representing Phillip Nunn when they were also representing the very victims (of Capita Oak) whom he had cold called in the first place.

Slater and Gordon’s Steve Kunziewicz claimed that “Blackmore Global is a prestigious, multi-asset investment house with over £60 million in assets under management, offering institutional and high net-worth clients access to a wide variety of investment products in order to maximise their returns.”

But there is no audit for Blackmore Global and only evidence suggesting the fund is invested in toxic, high-risk, illiquid crap including:

Swan Holding PCC

Kingston Capital Partners (Belize private equity vehicle controlled by Nunn & McCreesh)

GRRE Invest

Spinaris 90 ( UK sports spread betting)

The Blackmore Global audit was promised more than a year ago but never materialised. The audit has now been promised “by the end of the year” – but Grant Thornton won’t specify which year.

However, far from the Blackmore Global fund being aimed at “institutional and high net worth clients”, Phillip Nunn targets low-risk pension savers using a variety of unregulated so-called “advisers” such as David Vilka of Square Mile Financial Services. Many of the Blackmore Global victims were cold-called and/or introduced by Phillip Nunn’s cold-calling outfit, Aspinall Chase. Some were transferred to Maltese QROPS run by Integrated Capabilities and Harbour (now taken over by STM) and to Hong Kong.

Blackmore Global is a UCIS fund – unregulated collective investment scheme. And it is illegal to promote these to UK retail investors as this was banned by the FCA in 2014.

I doubt the other nominees and award recipients will appreciate having been listed alongside Phillip Nunn who has a history of promoting other scammers’ pension scams and is now running one himself. Perhaps JCI Manchester ought to vet candidates for the Manchester Young Talent Awards more carefully in the future.

November 26, 2017
SCAMS AND SCANDALS SYMPOSIUM – TRANSPARENCY TASK FORCE 15.11.17
IT IS A SCANDAL THAT THE WOLVES, VULTURES, SCORPIONS AND BLOOD-SUCKERS OF THE FINANCIAL SERVICES WORLD STILL FLOURISH

SCAMS AND SCANDALS SYMPOSIUM – PART OF THE TRANSPARENCY TASK FORCE: WEDNESDAY 15TH NOVEMBER AT THE OFFICES OF IG GROUP, 12.30 TO 5PM

Pension and investment scams and scandals are a blight on financial services and saving for retirement. The energetic and inspired campaign by Darren Cooke of Red Circle successfully raised awareness of the problems of cold calling. But the snap general election scuppered serious traction on this and the most the government has achieved so far is to make a vague promise to talk about talking about it. But still it is not illegal, and still the scammers are scamming away merrily.

Chair of The Transparency Task Force

The Scams and Scandals team was formed as a result of inspiration by the Transparency Task Force’s Andy Agathangelou. It has attracted a group of like-minded professionals who believe passionately that a concerted effort should go into coordinating a zero-tolerance approach to scams and scandals. All members of the team are committed to producing a White Paper which can focus the minds of government ministers, regulators and law enforcement agencies on the whole problem – not just the cold calling bit.

Irrespective of which version of which political party we are talking about, the ultimate object of a successful and fulfilled life is to be happy, healthy and solvent. And this includes getting a decent education, leading a responsible and law-abiding life, and saving for a comfortable retirement. Millions of British citizens manage to achieve this goal, but sadly many thousands of them lose part of all of their retirement savings to the armies of scammers.

Pension Life has been dealing with dozens of different scams in different jurisdictions by an army of repeat scammers since 2013. These include Trafalgar Multi-Asset Fund scam operated by XXXX XXXX and facilitated by STM Fidecs in Gibraltar; Continental Wealth Management pension investment scam (with much of the transfer advice provided by “sister” company Premier Pension Solutions run by Stephen Ward); Blackmore Global run by Nunn and McCreesh (who ran the cold calling and lead generation for Capita Oak and Henley); Fast Pensions run by Peter and Sara Moat in collaboration with Bridgebank Capital; Premier New Earth Recycling Fund; Park First – part of Group First (along with Store First); Windsor Pensions and the Danica QROPS liberation scam; London Quantum and Stephen Ward’s Dorrixo Alliance; Holborn Assets in Dubai; Ark (Lancaster, Portman, Cranborne Star, Woodcroft House, Tallton Place, Grosvenor); Toby Whittaker’s Store First; Elysian Biofuels liberation scheme; Axiom UPT; Capita Oak; 5G Futures; Guardian Wealth Management; Square Mile Financial Services; https://pension-life.com/incartus-investment-pension-scheme-in-the-hands-of-dalriada-trustees/Incartus Investment Pension Scheme; KJK Investments and G Loans; Westminster pension scam run by XXXX XXXX; Salmon Enterprises – run by James Lau; Pennines, Malvern and Mendip liberation scams; Henley pension scam run by XXXX XXXX; Evergreen QROPS and Marazion loans; Bespoke Pension Services.

XXXX XXXX, one of the many pension scammers ruining thousands of victims’ lives

All these scams and scammers have caused thousands of victims to lose hundreds of millions of pounds’ worth of retirement savings. And caused untold misery – in many cases exacerbated by HMRC punishing the victims rather than the perpetrators.

The Scams and Scandals Team has a clear five-point goal:
1. Ban UK cold calling and fraudulent calling
We must not let this disappear off the agenda and must keep up pressure on MPs and Ministers – as well as the regulators. But this must also be extended to overseas as we already know that the UK-based cold calling outfits have made arrangements to move their operations or merely facilitate re-routing of phone numbers. However, the twilight industry of “introducing” must also be examined as this is a serious source of scam facilitation.
1. Support Lesley Titcomb “Scammers are Criminals”
Ms Titcomb has publicly declared scammers to be criminals

We must work with the regulators, government and law enforcement agencies to enhance existing and introduce new regulation and legislation to prevent new scams, close down known existing scams and bring those involved in conceiving, operating and promoting both to account.
1. Revitalise Scorpion Campaign
Fundamental to preventing scams is communication to the public of the dangers of cold calls and pension/investment scams which would include the Scorpion Campaign – but so much more as well. A key part of this exercise is the use of social media and the plan to produce a documentary and Youtube channel giving real-life examples of past and current scams. Explaining the mechanics of a scam is one thing – but showing an actual example of a victim and the scammer is bound to have even greater impact.
1. Write off HMRC debt where scams are proven
HMRC celebrating the tax they collect from victims of pension liberation fraud

We need the help of the government here and could do with an actuary to help us work out what the cost to the State is of taxing victims of scams. If we can demonstrate that by ruining a scam victim (who has already probably lost part or all of his pension) with the tax charge, the long-term cost of supporting the victim and his family will far outstrip the tax collected. This is especially well demonstrated in the Ark case where the victims have got to both repay the “loans” and pay the 55% tax even if the loans are repaid.
1. Ensure AML regs include pension scamming
TOBY WHITTAKER’S TOXIC EMPIRE WILL FINALLY BE HUFFED AND PUFFED AWAY

I would widen this to include investment scams. This is because at the heart of every pension scam there is a fraudulent investment (and/or loan). The actual pension itself is harmless as it is essentially just a box with a label on it and only becomes toxic and dangerous once you put the scorpions, snakes and cockroaches inside it. You could equally put fluffy kittens in it. It is the mis-use of the pension “box” which is the scam.
November 6, 2017
SERIOUS FRAUD OFFICE REQUESTS PENSION AND INVESTMENT SCAM REPORTS

The Serious Fraud Office has asked victims of the Capita Oak, Henley, Westminster and Trafalgar Multi Asset Fund scams to make a report so that these crimes can be investigated.

But I am urging all victims of ALL scams to also make reports to the SFO, please.

This story was first published by International Investment journalist Helen Burgraff on 22.5.17 and heralds a welcome start to the much-needed initiative to bring pension scammers to justice.

Unfortunately, the pension landscape – both in the UK and offshore – is no better now than in the days of the Wild West. Back then, first the Sheriff’s Fraud Officer had to catch his horse; check the horse wasn’t lame; saddle up; then whistle for his tame injun to help him track the thief. Finally, once his water bottle was filled, the brave sheriff set off with his companion, Raging Bull, by around lunch time. Usually, they had tracked the thief down drinking whisky in a saloon by tea time, and after a dusty skirmish, he was thrown in jail by supper time.

Almost exactly two years ago, on 27.5.2015, the Insolvency Service published a witness statement on the £120 million Store First fraud which saw more than 1,000 victims lose their pensions and gain tax liabilities. The statement clearly named 18 scammers involved in these cases – many of whom had been visited at their offices. And yet, not a single one of these criminals was prosecuted or jailed.

Of course the blooming obvious happened – all the scammers went on to operate further scams and ruin thousands more victims’ lives. The cold calling firm, Nunn McCreesh, went on to operate the toxic UCIS fund, Blackmore Global; many of the cold callers upgraded their operations to “introducers” and the Ginger Scammer promoted himself to fund investment manager in the Trafalgar Multi Asset Fund (£21 million now suspended).

Scrap heap investments: Toby Whittaker’s Lootin’ Airport

Whatever all the rest of the scammers are doing, it won’t be making good the damage they caused back in 2012/13. And Group First is now launching a new Park First car park at Luton Airport. Doubtless there will be healthy investment introduction commissions for the scammers to con hundreds of investors and pension savers into losing their life savings. Perhaps Toby will name this new venture “Lootin’ Airport”.

Meanwhile, I have discovered one of the advantages of having police officers among the members of the Pension Life Groups. You get the benefit of a wee bit of inside information and I hear that a bunch of the scammers have been arrested. About time!

Meanwhile, the Ginger Scammer’s lawyer is complaining about an image on the Pension Life website. Trouble is, I can’t work out which one it is – I’ve searched and searched and I can’t find a single offensive photo. But then what is offensive to one person is inoffensive to another. I called the Ginger Scammer’s lawyer a “dick” once – maybe it should have been “tick”.

May 24, 2017
HMRC’s APN £1 Billion (or £2 Billion) Tax Demand: “TAKE THAT!”
Gary Barlow was allowed to keep his OBE after being caught using a tax avoidance scheme

HMRC is reported to have collected a billion quid in APN tax demanded (Accelerated Payment Notice) in the past year. A figure of £2 billion is also reported in other Google searches according to other reports.

We are talking about over 1,000 different types of tax – er – “planning” schemes flogged by accountants and tax advisers. If the gentle reader wants to be picky, the actual number is 1,181. Should the gentle reader still want to be picky, tax planning is another term for tax avoidance. Which is legal – as opposed to evasion which is illegal – but HMRC still doesn’t like it.

When HMRC issues an APN (aka “demand”) the tax must be paid within 90 days without appeal. Challenges and appeals don’t have much effect and HMRC loves APNs because it allows them to collect the tax and ask questions later (or possibly never). APN recipients can get tax demands for crippling amounts and even face bankruptcy.

So how would a person know whether an avoidance scheme was likely to result in an APN tax demand? Most people rely on their accountant to advise them. If an accountant says “here’s a legal way to pay less tax – it will work, trust me I’m an accountant”, the client usually jumps at the opportunity. After all, what could possibly go wrong if one’s own accountant suggests it? The answer is, sadly, everything. Because at the end of the day, if HMRC decides to issue an APN, it is not the accountant who gets clobbered for the tax, it is the client.

How would the client know if his accountant was giving him wrong advice? He could try checking the HMRC website – but all he would get is a bewildering list of numbers rather than the names or descriptions of the avoidance schemes themselves. Sometimes the accountant isn’t even using a named scheme but rather relying on his own experience and expertise to use a strategy he thinks/believes/considers/hopes will work for his client without risk of challenge by HMRC.

So why am I going on about tax avoidance schemes? What has this got to with pension and investment scams? The answer is EVERYTHING. HMRC’s £1 billion (or £2 billion – take your pick) tax take from APNs – at the rate of 3,000 a month – is designed to plug loopholes exploited by taxpayers and their advisers. The “everything” bit is in the word “approved” – which is what the advisers tell their clients the tax avoidance scheme is. Tax avoidance schemes can be registered by HMRC. But that doesn’t make them safe or approved as they can be added to the naughty list at any time without either warning or explanation.

Similarly, many financial advisers (or chiringuitos masquerading as financial advisers) tell their clients that a pension scheme – such as an occupational scheme or a QROPS (or a ROPS, or an OPS, or a PS, or an S) – is HMRC “approved”. Of course, there is no such thing. Just because HMRC registers a scheme doesn’t mean it is safe and not a scam registered by a known serial scammer. In fact, all the big, high-viz pension scams were HMRC registered. It is, indeed, a curious thing that HMRC never thinks to ask any questions about the validity of a scheme – but then they are probably far too busy issuing APNs to do so.

Celebrities are particularly at risk of being sold high-risk – and ultimately highly expensive – tax avoidance schemes:
- Michael Caine, George Michael, Anne Robinson and Gary Barlow among 1,600 people who contributed £1.2 billion to the Liberty tax avoidance scheme: artificial losses created to reduce tax liabilities
- David Beckham, Wayne Rooney and Andrew Lloyd Webber among a group of people stung with a £520 million tax bill after investing in blockbuster films such as Life of Pi and The Girl with the Pearl Earring
- Gary Barlow (again) in the Icebreaker scheme involving intellectual property rights set up to make tax-deductible losses
- Chris Moyles and 450 other celebrities in the Working Wheels scheme – a car dealership which cranked up huge losses so the investors could claim tax against them
- Sven Goran Erickson and Alex Ferguson in the Eclipse 35 scheme
- Jimmy Carr among 1,100 participants in the K2 offshore loans scam run by Roy Lyness of Peak Performance
The term “offshore loans” will, of course, ring some very unpleasant bells for victims of pension scams such as Capita Oak who started receiving their tax demands in March 2017. The pension scheme was 100% invested in Store First store pods and the victims received “loans” (you know – the sort you never have to repay, nudge/wink) from Seychelles-based loan company: Thurlstone.

So, what a murky old World! Seems accountants and tax advisers can be just as bad as the rogue cohort of the financial and pension advice industry. Meanwhile, HMRC continues to crank the tax-take machine while the victims face financial ruin.
April 21, 2017
Henley Pension Scam

HENLEY PENSION SCAM

THE WAY THE SCHEME WORKED

This was the “sister” scheme to Capita Oak, whose trustee was Imperial Trustee Services. The Henley trustee was Omni Trustees. Both Omni and Imperial were wound up by the Insolvency Service in the summer of 2015 and the two schemes had around £20m invested in Store First store pods. Store First is part of Toby Whittaker’s Group First – and another of his companies is Park First which Stephen Ward’s London Quantum scam was invested in.

The Henley Retirement Benefits Scheme was a bogus occupational scheme registered by HMRC and the Pensions Regulator. The scheme received £8.6m from members of the public between 2012 and 2013.

The administrator to the scheme was T12 Administration followed by DBC Pension Services Ltd on 7.3.13. Stuart Chapman-Clarke’s firm Sanderson Clarke was involved in promoting the scam. The store pods were purchased by solicitors Metis Law in Leeds.

The victims were promised guaranteed 16% returns and were told they could legally access 50% of their pension without incurring tax liabilities.

https://www.pensions-ombudsman.org.uk/wp-content/uploads/PO-4414.pdf and https://www.gov.uk/government/news/insolvency-service-takes-action-to-protect-pension-funds

June 8, 2016
London Quantum – Dorrixo Alliance Pension Trustee

Car Parking spaces are NOT suitable assets for a pension fund

DORRIXO Alliance is a pension trustee firm (for London Quantum among various others) run by Stephen Ward and his sidekick Anthony Salih

THE WAY THE SCAM WORKED

Dorrixo was a pension scheme administration and trustee company set up by Stephen Ward. It was the trustee for at least a couple of schemes – possibly dozens or more (including London Quantum placed in the hands of Dalriada by tPR in June 2015).

THE IDENTITY OF THE MAIN PLAYERS

Stephen Ward and Anthony Salih

HOW THE MAIN PLAYERS WERE INVOLVED

Trustees/administrators for a number of pension schemes operating either liberation or questionable investments or both. The victims first started to be scammed into the London Quantum pension scam in August 2014.

Dorrixo Alliance was the trustee/administrator for a number of pension liberation scams operated by Stephen Ward after Ark and Evergreen got shut down. When Ward moved away from liberation scams he moved into toxic pension assets which paid handsome investment introduction commissions.

Dorrixo Alliance was trustee for the London Quantum Occupational Pension Scheme – later London Quantum Retirement Benefit Scheme . This scam was placed in the hands of Dalriada Trustees in 2015. London Quantum was a bogus occupational scheme and had 96 members with a total of £6.8 million. The sponsoring employer was Quantum Investment Management Solutions LLP and the administrator was Stephen Ward’s Premier Pension Transfers Ltd.

The advisory firm behind this scam was an associate of Stephen Ward’s – FCA-registered Gerard Associates, run by Gary Barlow. A herd of “introducers” was responsible for scamming victims into London Quantum included Viva Costa International, Go BMV, Baird Dunbar, What Partnership.

The assets of the scheme included Dolphin GmbH, Best International (ABC Corporate Bond and Dubai Car Parks), The Resort Group, Quantum PYX Managed FX Fund, Reforestation Group Ltd, Park First, Colonial Capital Group plc. None of these were suitable for a pension fund.

The London Quantum scam was Suspended by tPR and placed in the custody of Dalriada Trustees in June 2015.

June 3, 2016
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

March 16, 2016
CAPITA OAK UPDATE AND INFORMATION REQUIRED

Capita Oak Pension Scam

For the benefit of all 300 odd members of Capita Oak, here is an email that was sent today to Downs & Co, the accountants acting on behalf of Christopher Payne, the director of the trustees Imperial. This email has been circulated to many Capita Oak members and other interested parties such as the police and the BBC who are preparing a documentary on the subject.

Hopefully it will not be too late to blow the whistle on this situation and rescue the members’ funds: https://pension-life.com/#!whistle/c13e7

Admittedly, the contents of this email raises more questions than it answers, but it does at least go some way to establishing how many members there are, how much in total was transferred and who the various parties were who received money from the transfers. What it does not yet establish is what the 10.14 million paid to Metis Law is now actually worth and how (or if) it can be recovered.
Dear Mr. Downs (info@downsandco.co.uk)

Referring to our earlier correspondence, will you kindly ask your client Mr. Christopher Payne the following questions:

1. A total of 10,810,301.57 was transferred in to Capita Oak from approximately 300 members and a total of 10,666,066.14 was paid out. This should leave a balance of 144,235.43 and confirmation is required that this is indeed the amount remaining in cash.

2. A total of 82,911.31 was paid out in “PCLS” payments and confirmation is required as to what these payments were and who authorised them.

3. The following “PCLS” payments were made and confirmation is needed as to who these people were and why these payments were made, upon whose authority:

-5,054.24 J Whyte
-8,854.53 G Rose
-21,875.72 W Daniels
-5,758.99 Mr Clemson
-5,286.32 Mr. Charlesworth
-17,231.51 Pamela Holt
-18,850.00 A Levitt

4. A total of 441,751.85 was paid to TKE Admin (of which Mr. Payne was a director). This was paid to TKE on 27 different dates between 12.11.2012 and 5.7.2013. Please explain what these payments were for and who authorised them.

5. Premier Pension Transfers were apparently handling the transfers but there is no record of any payment to them for their services. How were they remunerated and why were two administration companies involved and who appointed them?

6. A total of 10,140,598.27 was remitted to Metis Law between 11.20.2012 and 7.5.2013. Confirmation is required that Capita Oak now holds 10,140,598.27 worth of assets and exactly what income these assets are supposed to generate and whether they are unencumbered. Further we need evidence of title to these assets and a full explanation as to who authorised 100% of Capita Oak’s assets to be placed in illiquid property with very little liquidity remaining for transfers out.
7. An explanation as to how and by whom the Thurlestone “loans” were transacted, administered and recorded.

There will of course be numerous further questions which your client Mr. Payne will be required to answer, including why he has not contacted me or answered my calls. As I am sure you appreciate, as former and current director of Imperial Trustees, Mr. Payne is liable for any risks to Capita Oak and responsible for the members’ interests, investments and any non-compliant transactions linked to the pension, such as the Thurlestone loans of 5% of the value of the transfers.
In the case of Ark, professional independent trustees were appointed by the Pensions Regulator and the majority of the assets were eventually recovered. However, this is not the case for the Capita Oak victims – who are extremely distressed – and therefore we are all relying on the full cooperation and disclosure by you and your client Mr. Payne.

Your early response will be much appreciated. As I am sure you will be fully aware, this situation is being closely monitored by the police and the BBC, as well as the members and if you or your client Mr. Payne are unable to answer any of the above questions you must refer me to any other connected party who is in a position to do so. You will see that this email is copied to the Police, Store First and Metis Law.

Regards, Angela Brooks – Chairman, Ark Class Action

October 11, 2014