Fraudster jailed over £3.7 million pension scam targeting 74 victims

Kevin Phelan, 62, of Gillygooly Road, Omagh, Northern Ireland, appeared before Leeds Crown Court for sentencing on Thursday (May 28), where he was jailed for seven years and disqualified from being a company director for 12 years.

The sentence follows an investigation by the Yorkshire and Humber Regional Economic Crime Unit, part of the Yorkshire and Humber Regional Organised Crime Unit (YHROCU), into a pension liberation scheme operated between 2013 and 2015.

The court heard that Phelan and Daniel Giles, 51, of Jacob Drive, Coventry, devised a scheme which falsely promised investors early tax-free access to their pension funds and claimed their savings would be invested safely for the future.

Mohammed Bashforth, 62, of Spen Lane, Gomersal, formerly of Wakefield, operated the scheme.

Jurors were told the fraudsters used misleading brochures, data sheets and other marketing materials, as well as cashback incentives, to persuade people to transfer their pensions.

The scheme was operated from offices in Wakefield and Leeds.

The court heard that the defendants deliberately hid the fact that accessing pensions in this way could attract tax charges of up to 55 per cent.

Between December 17, 2013, and December 8, 2014, 74 victims were persuaded to transfer all or part of their pension savings into bank accounts controlled by the defendants.

The total amount transferred was £3,701,813.92.

The court was told investors’ money was stolen and hidden behind a number of bogus transactions, while HM Revenue and Customs was defrauded of £700,000 in tax owed.

The defendants employed a network of introducers to encourage investors to transfer control of their pensions.

By telling what the court heard were “detailed and careful” lies to legitimate pension companies, they were able to obtain control of customers’ funds without raising suspicion.

The court also heard from further would-be victims who ultimately decided not to transfer money to the defendants.

Phelan, Giles and Bashforth were found guilty at Leeds Crown Court in August of conspiracy to commit fraud by false representation and conspiracy to cheat the public revenue.

At an earlier sentencing hearing on January 9, 2026, Giles was jailed for 11 years and disqualified from being a company director for 12 years. He had also admitted a separate tax evasion offence relating to more than £1m in unpaid personal tax between April 2008 and April 2014.

Bashforth was jailed for five years and disqualified from being a company director for five years.

Further action will now be taken under the Proceeds of Crime Act.

Speaking after the sentencing, Ramona Senior, head of the Yorkshire and Humber Regional Organised Crime Unit said: “This was a complex and protracted investigation, but I am pleased that the jury were able to see that the intentions of those convicted were dishonest.

“Driven by greed, they sought access to pension holders’ cash and treated the funds they obtained as pots of money which they dipped into at will, with no intention to properly invest the funds or highlight the tax liabilities created.

“They had no care or concern as to the financial hardship this would cause victims.”

Anthony Burke, Deputy Director, Wealthy and Mid-sized Business Compliance, at HM Revenue and Customs, said:

"This police investigation underlines the serious consequences for those who defraud people of their pension savings through so-called liberation schemes.

“Anyone considering transferring their pension should seek professional advice first and be wary of schemes promising early access to pension funds, as these often result in significant tax charges.

“Search 'pension schemes and unauthorised payments' on GOV.UK for more information."