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Two men who defrauded dozens of vulnerable people by persuading them to invest crores of rupees into a bogus pension scheme have been jailed, after a UK court found that the operation was designed purely to enrich its organisers.
Daniel Giles, 51, and Mohammed Bashforth, 63, were sentenced at Leeds Crown Court for their roles in a fraudulent “pension liberation” scam that siphoned off around ₹390 crore from 74 victims. The pair falsely promised a tax-free route for early access to pension savings — a claim prosecutors said was dishonest from the outset.
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Giles was handed an 11-year prison sentence, while Bashforth was jailed for five years. Both were also disqualified from acting as company directors — Giles for 12 years and Bashforth for eight.
A third man, Kevin Phelan, 62, from Omagh in Northern Ireland, was convicted of the same offences — conspiracy to commit fraud by false representation and conspiracy to cheat public revenue — and will be sentenced at a later date.
The court heard that between 2013 and 2015, the trio deliberately targeted people already under financial strain, including those struggling to pay care home fees, going through divorce proceedings or facing mortgage arrears. Prosecutors said the defendants exploited these vulnerabilities to convince victims to transfer their pension pots, either fully or partially, into bank accounts under the group’s control.
In an attempt to explain suspicious money movements while under investigation, the fraudsters claimed they were trying to buy Doncaster Rovers football club — a move described in court as a calculated “smokescreen” to mask unusual transactions.
Prosecutor Tim Hannam KC told the court the men were “mature, intelligent and experienced” in financial matters and used that expertise to give credibility to the scam. He said they produced misleading brochures, data sheets and marketing material, and when claims were questioned, resorted to intimidation tactics, including threats of baseless defamation lawsuits.
Crucially, the defendants hid the fact that accessing pensions in this manner would attract tax penalties of up to 55%, leaving victims exposed to massive and unexpected liabilities.
Judge Penelope Belcher said the scheme was created solely to “make money for themselves”, describing internal communications between the men as “distasteful and money-grabbing”. She referred to messages boasting that they would have “oodles of noodles” — slang for money — by Christmas and others urging the group to “ramp up” the operation.
The court was also told that the trio had set up multiple companies using nominal directors, many of whom were unaware their identities were being used. Payments were deliberately concealed through complex chains of transfers across several bank accounts, often using misleading transaction references.
Between 17 December 2013 and 8 December 2014, victims transferred ₹389.7 crore (₹3,701,813.92) into accounts controlled by Giles, Bashforth and Phelan. Police said the scheme also defrauded HM Revenue and Customs of approximately ₹73.5 crore in unpaid taxes.
Giles separately pleaded guilty to cheating public revenue after failing to file tax returns for six consecutive financial years between 2008 and 2014. The court was informed that around ₹87.6 crore in tax dues remain outstanding against him, excluding interest.
While passing sentence, Judge Belcher said Giles had failed to acknowledge the emotional and financial devastation suffered by his victims. “The impact was enormous — shock, distress and severe anxiety — for people who were already struggling financially,” she said.
Although Bashforth was not identified as the ringleader, the judge said he had “allowed himself to be used” and played a meaningful role in executing the fraud.
Reacting to the verdict, Ramona Senior, head of the Yorkshire and Humber Regional Organised Crime Unit, said the case highlighted the scale and seriousness of pension fraud. “Driven by greed, they treated victims’ pensions as pots of money to dip into at will, with no intention to properly invest the funds or clearly explain the tax consequences,” she said.
Authorities have once again urged pension holders to seek independent, regulated financial advice and remain wary of unsolicited offers promising early or tax-free access to retirement savings — a classic red flag in pension scams that continue to cost victims hundreds of crores of rupees every year.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
