Two scammers have been jailed for running a pension fraud scheme that conned retirees out of £22m ($26m, €25.8m), the Crown Prosecution Service (CPS) and Metropolitan Police said.
Mark Kelly and Rikki Nicholls have been given a six-year jail term each for conspiracy to defraud and money laundering at Southwark Crown Court on 15 July 2022.
They were charged in 2020 alongside two other individuals – Sharon Nicholls and Angela Kelly – after their scam affected 275 victims who lost “their entire pensions”, the CPS said.
The duo persuaded pension holders, mainly Equitable Life customers, to transfer their pots into accounts controlled by Mark Kelly. They were then convinced to sign application forms with “blank sections” that were later completed by the two fraudsters.
This enabled the scammers to take control of the pension funds and, without the victims’ knowledge, place them into high-risk and unsuitable offshore investments.
These, subsequently, provided the duo with high rates of commission but put the pension pots at risk, the CPS added. An unknown number of the funds then collapsed, resulting in significant losses, with some losing their entire pensions.
Mark Kelly and Rikki Nicholls also extracted around 10% of the gross sum in unauthorised commission payments – in excess of £1m each – for their own benefit.
‘Financial ruin’
Jane Mitchell, specialist prosecutor at the 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.
“Mark Kelly and Rikki Nicholls cynically misled pension-holders, telling them they would have safe control over their pension funds but actually transferred the funds into high-risk investments, without the pension-holders consent or knowledge.
“The fraudsters did so for their own personal gain, knowing the high-risk investments generated high commissions for them but had no concern for their victims who were losing money they’d worked all their lives for.”
John Roch, head of the Metropolitan Police’s economic crime unit, 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.
“Many of the victims are vulnerable by age and financial position, and as a result of the actions of these men, they have been left in severe financial difficulties. Many must continue to work in order to fund their retirement, or retire with a lesser pension, or even without a pension. These men have caused so much distress and anxiety to them.
“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.”
