Two fraudsters who were part of a criminal enterprise that deceived more than 200 people into transferring their pension funds to phoney schemes have been jailed for a total of more than 10 years.
Following an investigation by The Pensions Regulator, Alan Barratt and Susan Dalton both admitted to charges of fraud by abuse of position in contravention of section 4 of the Fraud Act 2006, coming from their roles as trustees of pension plans (TPR).
They were part of a criminal operation that persuaded 245 members of legal occupational pension schemes to transfer their pension funds to scam pension schemes controlled by the defendants, worth an average of £55,000 and totalling £13.7 million.
They were sentenced at Southwark Crown Court today after admitting charges of fraud by abuse of position arising from their roles as trustees of pension schemes.
Barratt was sentenced to five years and seven months in prison, while Dalton was given four years and eight months. Following TPR’s request, the two were also barred from acting as company directors for eight years.
The court set a timetable for investigating whether any of the money obtained in the fraud may be recovered from the defendants under the Proceeds of Crime Act (POCA), with an initial hearing set for November 4th.
Judge Perrins says: “What is most striking is the impact on others, which has been utterly devastating. I have read 13 victims’ personal statements, they each tell a similar story, which I’m sure is representative of all. People who had worked hard, saved for their future and have been robbed of their financial security. I heard about depression, anxiety, divorce and suicide attempts. Each account is a story of a life ruined and you should be ashamed of bringing such misery to so many innocent people.”
He adds: “These are undoubtedly extremely serious offences in which each of you carried out the role of trustee dishonestly and, put simply, had you not done so, many people would not have had their lives ruined.”
TPR executive director of frontline regulation Nicola Parish says: “This is a despicable case which highlights the devastating impact pension scammers have on their victims. Barratt and Dalton were part of a criminal enterprise that tricked hundreds of savers into transferring their hard-earned pension pots into scam schemes under their control. In their role as trustees, the pair enabled millions of pounds to be taken from the schemes and channelled offshore, where it was used to enrich others involved in the criminal enterprise and to profit themselves.
“This prosecution and substantial custodial sentence sends a clear message that TPR and the courts will take tough action against fraudsters. Our successful extradition of Barratt from Spain also shows there’s no haven for scammers.
“Pension scams ruin lives. Savers should always be careful when making any decision to transfer a pension pot that’s taken a lifetime to build and should contact MoneyHelper, part of the Money and Pensions Service, for impartial guidance first.”
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