Pension liberation fraudsters have left a trail of suicide and wrecked manages in their trail as they ruthlessly target vulnerable retirement savers.
A campaigner fighting for justice for hundreds of ordinary workers who lost their lifetime savings to crooks has revealed the human cost of their scams.
Angela Brooks, who heads Ark Class Action, claims she knows of four suicides, tens of broken relationships and many who face losing their homes from around 700 victims who have signed up to her Facebook page.
She claims this human carnage is a small fraction of the damage pension liberation has left in its wake.
The two main pension liberation schemes were run by Ark Business Consulting and Capita Oak.
Pension loopholes
Both exploited an alleged loophole in pension rules that allowed retirement savers to access their cash before they reached the age of 55 years old – the minimum age for taking pension benefits.
“What they did not say is just as important,” said Brooks, “Few of the people taking up the offer made by the firms were aware that they would have to pay a 55% tax bill on the amount.
“Hundreds have tried to get their money back, but these firms are easy to find when they are arranging transfers but seem to disappear once they have your money.”
Ark collected around £25 million before The Pension Regulator moved in and froze the scheme’s bank accounts and assets.
Capita Oak invested in self-storage units, offering a 5% cashback to investors along with an 8% annual return.
Reporting scams
Brooks claims that because both schemes were listed as registered pensions with HM Revenue & Customs (HMRC), many of their victims assumed they were legitimate pensions.
The Pension Regulator has taken action against 20 different pension liberation operations.
“These scammers keep changing tack and are difficult to keep up with,” said a spokesman. “The rules about registering a pension have tightened up and we know who many of the fraudsters are, but now flexible access has changed the game away from pension liberation to investment scams.”
The regulator is spearheading a multiagency campaign against pension fraud and offers information on how to spot a suspected scam online.
“Anyone receiving an offer of a free government pension review, pension legal loopholes or other ways to cash in their pension early should read our warnings and report the matter to us or the police,” said a spokesman for the regulator.
