A third man has been sentenced to seven years in prison for his role in a £3.7 million pension liberation scam that defrauded 74 victims, many of them pensioners, between 2013 and 2015. Kevin Phelan, 62, of Omagh, Northern Ireland, was jailed at Leeds Crown Court on May 28, 2025, after being found guilty of conspiracy to commit fraud by false representation and conspiracy to cheat the public revenue.
The scam, operated by Phelan, Daniel Giles, 51, and Mohammed Bashforth, 62, used professionally produced marketing materials to convince victims they could access their pension funds early without paying tax. Victims were offered cash incentives to transfer their pensions into accounts controlled by the fraudsters. In reality, the scheme was illegal and resulted in HMRC being defrauded of £700,000 in tax.
Giles and Bashforth were jailed in January 2025, receiving sentences of 11 years and five years respectively. Giles also admitted a separate tax evasion charge involving over £1 million in unpaid personal tax. Both were banned from being company directors for 12 years and five years respectively. Phelan received a seven-year sentence and a 12-year director ban.
Anthony Burke, Deputy Director at HMRC, warned the public to be wary of pension liberation schemes, stating: '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.'
