This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-42802951
The article has changed 4 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| Truffle tree pension scam cost victims tens of thousands | Truffle tree pension scam cost victims tens of thousands |
| (about 20 hours later) | |
| As many as 245 members of the public have lost an average of £55,000 each, after falling victim to a series of pension scams. | As many as 245 members of the public have lost an average of £55,000 each, after falling victim to a series of pension scams. |
| Among those who lost money was a couple from Hereford, who invested in a firm producing "truffle trees". | Among those who lost money was a couple from Hereford, who invested in a firm producing "truffle trees". |
| Four people who ran 11 dishonest schemes have been ordered to pay back £13.7m they took from their victims. | Four people who ran 11 dishonest schemes have been ordered to pay back £13.7m they took from their victims. |
| The High Court ruling followed an application from The Pensions Regulator (TPR). | The High Court ruling followed an application from The Pensions Regulator (TPR). |
| It was the first time such an order has been obtained, following new powers given to TPR under the 2004 Pensions Act. | It was the first time such an order has been obtained, following new powers given to TPR under the 2004 Pensions Act. |
| 'Deep regret' | 'Deep regret' |
| In 2013, the Herefordshire couple transferred more than £78,000 to an investment organised by a man called Alan Barratt, after he told them they could get a better return on their investment. | |
| They were assured the funds would be invested in low-risk investments. However, they were then sent details of a firm producing so-called truffle trees in the West Country. | They were assured the funds would be invested in low-risk investments. However, they were then sent details of a firm producing so-called truffle trees in the West Country. |
| Typically such providers inoculate oak trees with truffle fungi, with the promise of producing truffles within seven years. | Typically such providers inoculate oak trees with truffle fungi, with the promise of producing truffles within seven years. |
| The victim, a man aged 46, told the court: "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. | The victim, a man aged 46, told the court: "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. |
| "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. | "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." | "I deeply regret ever listening to Mr Barratt." |
| The couple did receive a payment of £11,800 as a commission. However, as a result they were also sent a tax bill of several thousand pounds from HM Revenue and Customs (HMRC). | The couple did receive a payment of £11,800 as a commission. However, as a result they were also sent a tax bill of several thousand pounds from HM Revenue and Customs (HMRC). |
| Cold-calling | Cold-calling |
| A man from South Wales who gave up work to become a carer for his partner lost nearly £50,000. | A man from South Wales who gave up work to become a carer for his partner lost nearly £50,000. |
| After being approached by text message, he was persuaded to invest in the construction of time-share apartments in St Lucia. | After being approached by text message, he was persuaded to invest in the construction of time-share apartments in St Lucia. |
| "The loss of my pension will have a massive impact on my life," he said in a witness statement. | "The loss of my pension will have a massive impact on my life," he said in a witness statement. |
| "When my children finish school, I will be around retirement age. There will be no money to draw down when I turn 55 and no pension savings for later life." | "When my children finish school, I will be around retirement age. There will be no money to draw down when I turn 55 and no pension savings for later life." |
| Another man - a council tenant from Hull - lost £17,000 after being cold-called by Susan Dalton. | Another man - a council tenant from Hull - lost £17,000 after being cold-called by Susan Dalton. |
| He was promised a return of 5% a year, plus a 10% cash lump sum up front. But he never saw any return. | He was promised a return of 5% a year, plus a 10% cash lump sum up front. But he never saw any return. |
| Life of luxury | Life of luxury |
| In his judgement, Judge Mark Pelling ordered David Austin and Alan Barratt to repay £7.7m. Mr Austin and Ms Dalton were jointly liable for an additional £5.9m, he said. | In his judgement, Judge Mark Pelling ordered David Austin and Alan Barratt to repay £7.7m. Mr Austin and Ms Dalton were jointly liable for an additional £5.9m, he said. |
| Mr Austin is a former bankrupt, with no experience of running an investment company. | Mr Austin is a former bankrupt, with no experience of running an investment company. |
| The court heard evidence that he used the money to live a life of luxury including ski holidays and trips to Dubai. | The court heard evidence that he used the money to live a life of luxury including ski holidays and trips to Dubai. |
| The judge said he was satisfied that Austin was the mastermind behind the scam, which also involved another man called Julian Hanson. | The judge said he was satisfied that Austin was the mastermind behind the scam, which also involved another man called Julian Hanson. |
| Judge Pelling also directed TPR to refer the matter to the Director of Public Prosecutions (DPP) - to decide whether criminal charges should be considered. | Judge Pelling also directed TPR to refer the matter to the Director of Public Prosecutions (DPP) - to decide whether criminal charges should be considered. |