TWO ‘heartless’ men have been jailed for a £22 million pension fraud that left victims robbed of thousands of pounds of life savings.
Rikki Nicholls of Linthurst Newtown, Blackwell, Bromsgrove and his accomplice Mark Kelly of Maplewood Road, Wilmslow have both been sentenced to six years imprisonment.
The two men devised a plan to persuade pension holders, predominantly Equitable Life customers, to transfer their pensions into accounts controlled by Mark Kelly.
Kelly, aged 51, and Nicholls aged 57 were sentenced at Southwark Crown Court on Friday, July 15 after being found guilty following a five-month trial at the same court in April.
The court heard how customers were persuaded to sign application forms which had blank sections, later completed by Kelly and Nicholls.
This enabled the conspirators to take control of the pension funds.
Without the knowledge of the victims, funds were placed into high-risk and unsuitable offshore investments.
The investments provided the fraudsters with high rates of commission but put the pension funds at risk.
More than 250 victims lost anything from £10,000 to £200,000 of their pensions.
Detective Superintendent John Roch, head of the Metropolitan Police’s Economic Crime said: “Many of the victims are vulnerable by age and financial position, and as a result of the actions of these men, they have been left in severe financial difficulties.
“Many must continue to work in order to fund their retirement, or retire with a lesser pension, or even without a pension.
“These men have caused so much distress and anxiety to them.
“I would like to applaud the victims for their help with this investigation and thank those who gave evidence in court.
“The detectives who worked on this case have distinct areas of expertise and it is with thanks to their years of hard work and dedication we have achieved today’s result.
“I would like to pay tribute to the tenacity, expertise and professionalism of my staff that has resulted in these convictions.”
On Wednesday, April 16, 2014, Kelly was arrested for fraud whilst Nicholls voluntarily returned from his residence in Dubai and on Wednesday, May 14, 2014, he was interviewed under caution.
Enquiries and statements were completed nationally and internationally by the Metropolitan Police.
On Monday, July 6, 2020, Kelly and Nicholls were charged with conspiracy to defraud and money laundering.
They pleaded not guilty at Westminster Magistrates’ Court on Monday, August 17, 2020, and were sent to Southwark Crown Court for trial commencing Monday, November 8, 2021.
Over 3,000 documents were reviewed, and 193 witness statements were served.
Jane Mitchell of the Crown Prosecution Service said: “The harm caused by these fraudsters is immense, involving raids on the victims’ pension pots which wrecked their future livelihood and post-retirement plans.
“Mark Kelly and Rikki Nicholls cynically misled pension-holders, telling them they would have safe control over their pension funds but actually transferred the funds into high-risk investments, without the pension-holders consent or knowledge.
“The fraudsters did so for their own personal gain, knowing the high-risk investments generated high commissions for them but had no concern for their victims who were losing money they’d worked all their lives for.”
DS John Roch added: “I would ask anyone who is contacted by a cold caller about an investment to be vigilant.
“Please consider getting independent professional advice before making a significant financial decision.”
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