What is pension fraud?
Pension fraud involves the deliberate misuse or misappropriation of pension funds through deception, often for personal gain. This can take many forms, including:
Pension liberation scams: Individuals promise early access to pension savings before the age of 66, often without informing the victim of the substantial tax penalties and long term financial loss involved.
Investment scams: Victims are encouraged to transfer pension funds into high risk or entirely fictitious investment opportunities.
Impersonation fraud: Criminals may pose as legitimate financial advisers or representatives of pension providers to obtain personal information or gain control over pension accounts.
Internal fraud: Trustees, administrators, or employees of pension schemes misappropriating funds for unauthorised purposes.
But exactly what impact can it have, and what are the consequences of committing pension fraud? Harewood Law has broken it down below.
Consequences of committing pension fraud
Pension fraud can have significant financial and emotional implications for the victim, and the consequences reflect this.
If you are found guilty of pension fraud, you could face up to 10 years in prison, and be sentenced to repay any stolen funds to the victim.
As with any crime, this depends on the circumstances surrounding the criminal activity. For example, organised crime groups will face a harsher sentence, particularly if they have committed multiple or serial offences. In almost every circumstance, you will receive a disqualification from becoming a company director in the future.
You may likewise face an ancillary order, such as:
Restraining order
Reparation order
Financial reporting order
Confiscation order
You will gain a criminal record.
Culpability and pension fraud
The level of culpability in a pension fraud case is assessed depending on the level of intent, premeditation and the role of the offender in the crime. These factors should be balanced to determine the weight of the crime and ultimately settle on a fair and appropriate sentence.
Because pension fraud is a crime that can only be committed with intention, there is a narrow range of culpability that applies:
High Culpability
To be convicted of pension fraud with high culpability, one of the following must apply. You must have:
A leading role in the case of the offense being a group activity
Involved others in the fraudulent activity
Abused a position of power or responsibility
Premeditated the offense to a significant degree
Committed the crime over a significant period of time
Deliberately targeted victims due to their vulnerability
Targeted a large number of victims
Medium Culpability
To be convicted of pension fraud with medium culpability, one of the following must apply. You must have:
Played a significant role in the case of the offense being a group activity
A mix of high and medium culpability criteria that balance each other out
Low Culpability
To be convicted of pension fraud with low culpability, one of the following must apply. You must have:
Been involved in the crime through coercion or exploitation
Not been motivated by personal gain
Limited awareness of the extent of the crime
Committed the offence once, with limited to know premeditation
What happens during a pension fraud investigation?
Pension fraud investigations are thorough, and it is imperative that you request the assistance of an experienced fraud solicitor to ensure the best defence possible. The early steps of an investigation will involve a search warrant being issued which allows the police to search your home, phone, laptop, place of work, vehicle, and any other property deemed appropriate for obtaining evidence for the case.
Your phone and internet records will likewise be searched.
It is likely that your assets will be frozen for the duration of your case so you are unable to transfer funds elsewhere, or cover up any evidence in the interim.
You will be investigated in police interviews, and a court case may be deemed necessary. With a dedicated fraud solicitor, you will reduce uncertainty and have a strong defence built in your favour.
If you plead guilty, you could reduce your sentence by up to a third, but your solicitor will discuss this with you in due course.
Is it possible to commit pension fraud accidentally?
No, it is not possible to commit a serious case of pension fraud without intention. Although it is possible to not fully understand the extent of the crime, or to be led into committing pension fraud as a vulnerable person who does not recognise the scope, pension fraud is almost impossible to commit by accident.
If you have been coerced into committing pension fraud then it is vital that you seek legal council as soon as possible to aid your defence. At Harewood Law, we will do everything in our power to reduce your sentence and seek justice for you.
What to do if you’ve been accused of pension fraud
If you have been accused of pension fraud, then you must seek legal counsel immediately. Do not speak to the police or the victim without a lawyer present as this could significantly harm your defence.
Harewood Law are expert criminal defence lawyers specialising in cases of serious crime, financial crime and fraud.
Our aim is to give every person a chance to fight for justice, as the law allows. We make sure you have the most experienced criminal defence team in your corner to build a robust case defence, and provide legal advice throughout the duration of your case.
For more information on how we have helped clients who have been accused of pension fraud, see our notable case: R v B - Pension Fraud London.
Contact us today, we work on both privately funded and serious Legal Aid cases across Leeds, Bradford, Halifax, Wakefield, Huddersfield, Keighley and across West Yorkshire and the UK.
0333 3448377 | info@harewoodlaw.com