Suicides of four victims in pension fund scam

[TrueBlueTerrier]

Suicides of four victims in pension fund scam: Dozens of marriages also said to have collapsed and families could lose their homes over the scandal

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Hundreds fell victim to pension investment scams, campaigners revealed
Put money into schemes that promised access to fund before they were 55 without having to pay tax because of legal loophole
They are now liable to pay a 55 per cent tax charge on money they took out
One investor has lost £220,000 and many others expect six-figure bills


Four people have committed suicide after falling victim to a pension investment scam, campaigners said yesterday.

Dozens of marriages have also collapsed and many families could lose their homes because of the scandal.

Hundreds of people put money into two schemes that assured them they could access their pension funds before they were 55 without having to pay tax because of a legal loophole.

But this was not the case, and those who invested in the schemes are now liable to pay a 55 per cent tax charge on the money they took out.

One investor has lost £220,000 and many others expect six-figure bills.

Many are uncertain if they will get any of their money back after being unable to contact the trustees of the schemes, called Ark and Capita Oak.

Angela Brooks, of campaign group Pension Life, warned the 700 people caught up in the schemes, which were set up several years ago, represented ‘just the tiny tip of the iceberg’.

She said: ‘I am aware of four suicides, dozens of marriages collapsing and many face losing their homes because of the tax bill. Currently there are many thousands of people in the same boat as the Ark and Capita Oak victims.’

Ark, which raked in £27million, ran a system in which investors borrowed money from each other’s funds, supposedly to get around the tax for accessing their own pensions before the age of 55.

Capita Oak, which received around £10million, involved investing in storage units. It gave members an instant 5 per cent ‘cashback’ and promised an 8 per cent annual return. Mrs Brooks said that one man committed suicide in 2012 after investing in Ark when he was very ill and had lost his job.

A 30-year-old disabled man killed himself after his mother lost money in the scheme and he feared she would have to give up being his full-time carer to go back to work.

Dennis Waite, 49, who placed £108,000 from his Royal Mail final salary pension in Capita Oak, said: ‘When the penny dropped I could have quite easily jumped under a truck. It was like a punch to the stomach. The people behind this are scum. I don’t know how they sleep at night.’

Jason Bellman, 49, from Bedhampton, Hampshire, who accessed his £151,000 pension from working as a security guard for G4S, said: ‘I’m facing a tax bill of £82,000 but there’s nothing to suggest I’m getting even a penny back.’

Investors complained that schemes are registered with HMRC, suggesting they are legitimate. The Pensions Regulator said assets have been frozen in 20 schemes and it is working with the Serious Fraud Office. The scandal will raise fresh concerns about how vulnerable people are to sharks in the pensions industry.

There are also fears that confusion over pension rules after last month’s shake-up could mean more fall into traps.

The new rules allow over-55s to cash in their pensions, but most still have to pay the 55 per cent tax if they take money out before that age.

For confidential support, call the Samaritans on 08457 909090, visit a local branch or go to http://www.samaritans.org" onclick="window.open(this.href);return false;.

[Lounge Lizard]

Not meaning to be unsympathetic but such offers that might seem too good to be true invariably are too good to be true
and an element of greed that attracts us to such wealth can sadly blind us to the reality of what is just a scam.