In a shocking turn of events, two con artists from West Yorkshire have been sentenced to prison for their involvement in a fraudulent scheme that swindled £3.7 million from unsuspecting victims. Daniel Giles and Mohammed Bashforth orchestrated a deceitful operation that targeted 74 vulnerable individuals, misleading them into believing they could access their pension funds tax-free through a fake "pension liberation" program.
The court proceedings, held at Leeds Crown Court, revealed that the duo, along with a third accomplice, Kevin Phelan, once attempted to create a diversion by claiming they were in negotiations to purchase Doncaster Rovers football club. This was an ill-fated effort to obscure unusual financial transactions while under scrutiny. Ultimately, Giles, aged 51, and Bashforth, aged 63, were convicted of conspiring to defraud the public and were handed sentences of 11 years and 5 years, respectively. Meanwhile, Phelan, who is 62 and hails from Omagh in Northern Ireland, is awaiting sentencing on similar charges.
The prosecution detailed how this trio preyed on individuals already facing financial hardships—those struggling with care home fees, divorce proceedings, or mortgage challenges—and misled them into investing their life savings into this fraudulent scheme. One victim was described as being so disoriented that he “doesn't even know what day of the week it is,” showcasing the depth of distress caused by the fraud.
Operating between 2013 and 2015, Giles and Bashforth ran their operation from offices located in Wakefield and Leeds. Prosecutor Tim Hannam KC characterized them as experienced and intelligent within the financial sector, asserting that they exploited their knowledge to perpetrate fraud from the very beginning. They provided potential investors and service providers with deceptive brochures, data sheets, and marketing materials designed to mislead.
However, when their fabricated claims failed to gain traction, the pair resorted to intimidation tactics, threatening to file false defamation claims against those who questioned their legitimacy. Moreover, they intentionally concealed the fact that accessing retirement funds prematurely through their scheme would incur steep taxes of up to 55%.
Judge Penelope Belcher remarked that their scheme was entirely driven by a desire to enrich themselves. She read distressing messages exchanged between the men that revealed their greed, including one text suggesting they would have "oodles of noodles" (a slang term for money) by Christmas, and another expressing the need to "ramp up" their operations.
The court also learned that they established numerous companies, using the names of unwitting directors who had no knowledge of their identities being misappropriated. Payments made to their accounts were cleverly disguised through a series of transactions involving multiple accounts and misleading bank references.
Once law enforcement, including the police and the National Crime Agency (NCA), began investigating, the defendants attempted to cover their tracks by falsely claiming they were negotiating to buy the football club, hoping this would clarify the suspicious payments.
Between December 17, 2013, and December 8, 2014, these fraudsters successfully persuaded 74 victims to transfer either all or part of their pensions into accounts they controlled, amounting to a staggering total of £3,701,813.92. Additionally, they defrauded HM Revenue and Customs of approximately £700,000 in owed taxes. Giles also pleaded guilty to an additional charge regarding his failure to file tax returns for six consecutive years between 2008 and 2014, resulting in an outstanding tax liability of £834,509.75, excluding interest.
During sentencing, Judge Belcher acknowledged a letter from Giles that was “eloquent” but criticized him for neglecting to address the profound impact his actions had on the victims, who experienced significant shock, distress, and anxiety at a time when they were already struggling to access their pensions.
As a result, Giles received a sentence of 11 years and was disqualified from serving as a company director for 12 years. While Bashforth wasn’t seen as the mastermind behind the operation, the judge indicated he allowed himself to be used and sentenced him to five years and a disqualification of eight years.
Following the conclusion of the trial, Ramona Senior, who leads the Yorkshire and Humber Regional Organised Crime Unit, expressed satisfaction that the jury recognized the dishonest intentions of the convicted individuals. She emphasized that their actions were driven by greed, treating the pension funds they acquired as personal cash reserves to exploit without consideration for proper investment or the associated tax implications.
For more insights, you can listen to highlights from West Yorkshire on BBC Sounds or catch up with the latest episode of Look North.
