Two Men Jailed for £22 Million Pension Scam
After pulling off a cold-blooded £22 million pension fraud, two men have finally been locked up. The Met Police are now warning the public to be extra careful when faced with investment offers.
The Sinister Scheme
Rikki Nicholls, 57, from Bromsgrove, and Mark Kelly, 51, from Wilmslow, ran a cunning scam. They tricked over 250 pension holders into transferring their retirement savings into Self-Invested Personal Pensions (SIPPs) under their control. Instead of growing the investments, the duo pocketed huge commissions, leaving victims in financial ruin.
“Both men put their own financial gain over the interests of over 250 victims, losing their money and leaving some in financial ruin, while earning lucrative sums themselves,” said Detective Superintendent John Roch, Head of the Met’s Economic Crime Unit.
How the Scam Worked
- Nicholls used contacts from his former employer, Equitable Life, to cold call pension holders.
- Pensions were transferred into unauthorized SIPPs managed by Hornbuckle Mitchell advisors.
- Unqualified and unlicensed staff handled paperwork, often leaving forms incomplete so the fraudsters could add hefty, hidden fees later.
- Victims’ correspondence was redirected to a PO Box controlled by the scammers to block communication.
- Pensions were invested in risky, unsuitable funds, resulting in huge losses, often between £10,000 and £200,000 per person.
The pair operated under the fake trading name ‘PCD Wealth & Pension Management,’ which wasn’t licensed to do pension business in the UK.
Warning to the Public
“I would advise anyone who receives a cold call about an investment to be cautious. Before making a significant financial decision, please seek independent professional advice,” Detective Superintendent John Roch warned.
Denis Mountford, a victim from Birmingham, shared his frustration: “I was very cross with myself for trusting poor financial advisors who took a high commission. I hope this case serves as a warning to others.”
Justice Delivered
After a lengthy investigation starting in 2011 and a five-month trial, Nicholls and Kelly were convicted of conspiracy to commit fraud and criminal property transfer. On 15 July at Southwark Crown Court, both were sentenced to six years behind bars.
Kelly was arrested in April 2014, while Nicholls returned from Dubai to face questioning. The investigation involved reviewing over 10,000 documents and 193 witness statements.
What to Do If You Suspect Pension Fraud
If you think you’ve been targeted or want to check suspicious investment offers, contact Action Fraud immediately on 0300 123 2040. More info is available at actionfraud.police.uk/investmentfraud.
The Met vows to pursue confiscation orders to claw back stolen cash and bring scammers to justice.
