A group of pension scammers must repay nearly £14 million taken from hundreds of victims, some of whom were told that they had invested in a non-existent truffle tree business.
David Austin, Susan Dalton, Alan Barratt and Julian Hanson persuaded 245 savers to transfer money that they had put aside over decades to 11 scams operated by a company called Friendly Trustees Limited.
As an incentive to hand over their money into what they were told were low-risk investments, victims were promised tax-free lump sum payments, known as “commission rebates”.
Instead of investing the funds, Mr Austin put them into his own bank account and the accounts of family members in Britain, Switzerland and Andorra. He and his family spent the money on expensive goods, skiing holidays and trips to Dubai and the Mediterranean. One couple who fell victim to the scam, referred to in court only as John and Samantha from Hereford, were persuaded by Mr Barratt to transfer more than £78,000.
“As a result of my dealings with Alan Barratt, my final-salary pension is in a scheme that I don’t understand the status of, but which I have been told is a scam,” John, 46, said, in evidence to the regulator. “As far as I know, the majority of my pension fund is invested in truffle trees, but I doubt whether that is legitimate. My partner appears to have lost her pension, too. I deeply regret ever listening to Mr Barratt.”
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The High Court ruled yesterday that the fraudsters should repay £13.7 million. It is the first time that the pensions regulator has asked the court to issue such an order. The regulator has appointed a trustee to seek the confiscation of assets.