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Categories:Investments

Bogus financial adviser jailed for £1.9m tax fraud

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A bogus financial adviser who fraudulently manipulated his “clients’” pension funds to avoid paying tax of over £1.9m has been jailed for three years.

Colin Pearson, aged 47, who previously worked for the Food Standards Agency, claimed to be a financial adviser and persuaded his “clients” to release over £3.4m from their pension funds.

Pearson completed UK pension transfer forms on behalf of his clients to falsely claim that the funds were going abroad to avoid paying tax due on the pension withdrawals. Pearson persuaded over thirty UK pension holders to make unauthorised transfers.

HM Revenue & Customs investigators arrested Colin Pearson in September 2009, he pleaded guilty to cheating the public purse at an earlier court hearing. He was sentenced at Hull Crown Court.

Pearson’s fraud involved releasing various individual’s pension funds over the period February 2008 to October 2009. The value of the funds released was estimated as £3.4m of which just below £3m  was returned to “clients”. He also released his own pensions, valued at £74,619, in total approximately £377,608 was taken as commission.

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Readers' comments (4)

  • I'm glad this person got convicted but surely RDR may make the situation even worse as at present there is an automatic verification system in place by providers as commission and advice fee are paid within products.

    What happens when everything is done by invoicing surely this could make it easier for the fraudsters.

    We also could find a significant rise in individuals giving advice without the necessary authorisation light solicitors and accountants and other types of power plans.

    So I hope this guy is the first of many to be prosecuted for giving advice without having the relevant authorisation.

    There is already a significant problem of people giving advice without adequate authorisation and the FSA needs to take greater steps in this area.

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  • Charged with cheating the public purse eh!!

    Guess the next ones will be, every MD of every FTSE100 listed Company, every tax accountant and every real IFA that simply does his or her best for their clients.

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  • Note it wasn't the FSA that spotted it, but HMRC...

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  • So what about the people who he ripped off then?

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