Duo jailed for £20m pension fraud

Two fraudsters have received a jail sentence for conspiracy to gain access to the pension funds of several victims, as well as money laundering.

Back in 2007, Mark Kelly and Rikki Nicholls set up a scheme called PCD Wealth and Pension Management, where their victims were encouraged to transfer their pensions into investment funds.

Nicholls, who was an ex-employee of life insurance firm Equitable Life, reportedly gathered details of existing customers who they cold called to convince them to part with their money into a Self-Invested Personal Pension controlled by the scheme they created.

Due to these illegal actions, they have now been sentenced to six years imprisonment.

Their fraudulent activity included leaving parts of application forms blank so that they could complete them themselves, the CIPP shared.

Once the pair had control of the funds, they used them to invest in risky investments, while also extracting around 10% of the assets in unauthorised commission payments.

The Evening Standard reported that Scotland Yard traced over 250 victims from across the UK and seized 10,000 documents following a tip-off from the Financial Conduct Authority (FCA).

Over £20m of pensions savings were lost in total, with the victims losing out on up to £200,000 each.

Commenting on the fraud, Jane Mitchell of the Crown Prosecution Service (CPS), said: “The harm caused by these fraudsters is immense, involving raids on the victims’ pension pots which wrecked their future livelihood and post-retirement plans.

“Many victims were left with no pensions and will have to work well beyond their retirement date to provide for themselves and their families.”

Detective Superintendent John Roch, head of the Met’s Economic Crime team, added: “Both men put their own financial gain over the interest of over 250 victims, losing their money and leaving some in financial ruin, whilst earning lucrative sums themselves.

“I would ask anyone who is contacted by a cold caller about an investment to be vigilant. Please consider getting independent professional advice before making a significant financial decision.”

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