A West Midlands man has been sentenced to 11 years in prison for his central role in a sophisticated fraud that conned victims out of more than £3.7 million from their pension savings.
The Elaborate Pension Liberation Scam
Daniel Giles, 51, of Jacob Drive in Coventry, was a key member of a criminal group that falsely promised people early, tax-free access to their pension pots. Between 2013 and 2015, Giles worked with co-defendants Mohammed Bashforth, 62, and Kevin Phelan, 62, to steal the retirement savings of over 70 individuals.
The fraudsters used professionally produced brochures, data sheets, and marketing materials to lend their scheme an air of legitimacy. They enticed victims by offering cashback incentives to transfer their pensions, claiming to have a special method to release funds early without tax penalties.
How the Fraud Unfolded and Its Impact
In reality, the investment opportunity was entirely fictitious. The group told "detailed and careful" lies to legitimate pension companies to facilitate the transfers, successfully moving customers' life savings into bank accounts they controlled.
The court at Leeds Crown Court heard that between 17 December 2013 and 8 December 2014, a total of 84 victims were persuaded to transfer £3,701,813.92 into the defendants' accounts. The stolen money was then hidden behind a series of bogus transactions and treated by the criminals as a personal fund to dip into at will.
Not only did the scam devastate the victims' finances, but it also defrauded HM Revenue and Customs out of approximately £700,000 in owed tax. Giles additionally admitted a separate charge of evading over £1 million in personal tax between 2008 and 2014.
Sentencing and Official Reaction
Following a trial, Giles, Bashforth, and Phelan were all found guilty in August of conspiracy to commit fraud by false representation and conspiracy to cheat the public revenue. Giles received an 11-year prison sentence and was disqualified from acting as a company director for 12 years.
Bashforth was jailed for five years with a five-year director disqualification. Phelan is awaiting sentencing at a later date.
Ramona Senior, head of the Yorkshire and Humber Regional Organised Crime Unit (YHROCU) which led the investigation, stated: "Driven by greed, they sought access to pension holders’ cash... with no intention to properly invest the funds or highlight the tax liabilities created. They had no care or concern as to the financial hardship this would cause victims."
Authorities confirmed that further action to reclaim the criminals' assets will now proceed under the Proceeds of Crime Act.
