Pensioner jailed for role in £13.7m life savings scam
APENSIONER from Rochdale has been jailed for more than four years for her role in a multi-million pound pension scam that saw almost 250 people duped out of life savings.
Fraudsters Susan Dalton, 66, and Alan Barratt, 62, helped con 245 victims out of a total of £13.7 million between 2012 and 2014, a court was told.
A man said to have been the scam’s ‘mastermind’ – David Austin – took his own life in 2019 after being invited for a police interview under caution, a judge was told.
Dalton, from Brookdale near Syke, and Barratt, of Burnham Road in Althorne, Essex, both admitted one count of fraud by abuse of position. Dalton was jailed for four years and eight months. Barratt got five years, seven months.
Passing sentence on Friday at Southwark Crown Court, Judge Gregory Perrins said the pair caused ‘such misery to so many people’, with victims suffering mental health problems and some even attempting suicide.
“Each account that I have read is a story of a life ruined by your actions and you should both be ashamed,” he said.
The average amount each person lost was £55,000, but some lost many times more.
The court was told Dalton and Barratt, who were based in Spain, enticed savers with the promise of unrealistic returns, cash bonuses – and even John Lewis vouchers – before getting them to transfer their pensions from legitimate schemes to fraudulent ones.
The judge was told the cash bonuses, which victims were led to believe were part of a commission payment from the new schemes, were actually taken from their savings.
Their victims, meanwhile, have told how it ‘ ruined’ their lives and left them ‘panicky’.
Pauline Padden, 58, who lost £45,000, said the experience had ‘brought a lot of negativity and insecurity and anxiety’ into her life.
The mother-of-three, who has worked as a critical care nurse in the NHS since she was 18, fell victim to the scam after receiving a text promising higher returns on her pension and bonuses for transferring her current pension funds.
As she was spending much of her time caring for her dying mother in 2013, she was unable to make a steady income and was drawn in by the promise of extra cash.
She said: “I’m 58 and I’ve got no thought at all about retiring and all around me; friends, family, colleagues, they’re all talking about their retirement and what they’re going to do, and I can’t do any of that because that’s been taken from me. Whoever did this had every intention of taking it off hard-working people basically. And they have just robbed my retirement from me, it’s gone now.”
Dalton and Barratt were said to have passed the lion’s share of the money to Austin, who used it for his own personal benefit, to fund his businesses, pay others involved in the operation and enrich himself and family members.
During the scam, the court heard Dalton was a trustee for four fraudulent occupational pension schemes and duped 103 victims out of just over £5.9 million, taking around £126,000 for herself.
Meanwhile, Barratt was a trustee for six schemes and sucked in 139 victims and over £7.7 million of their savings, personally profiting by around £343,000, the judge was told. A civil trial brought by The Pensions Regulator against Austin, Barratt, Dalton and others took place at the High Court in 2018, after which the trio were ordered to repay millions in ill-gotten gains.
However, the funds, most of which were transferred to offshore accounts, have never been recovered, the court was told.
The judge heard Kent firefighter Glenn Perkins, who transferred £146,000 to the scammers in 2013, felt ‘worthless and useless’ and now struggles with mental health problems.
Another man, referred to as Mr Holloway, handed over £300,000 and has been left ‘devastated’.
The judge was told Dalton and Barratt ‘deceived’ banks in Britain into believing they were in the UK in order to open accounts.
A solicitor was also instructed to send disgruntled victims comfort letters and threaten legal action, the court was told. The scam included the creation of shell companies set up to pose as named employers for the fraudulent occupational pension schemes, while Barratt and Dalton were named as directors, the judge heard.
George Payne, representing Dalton, told the court that while she had acted improperly as a trustee, she believed the pensions schemes were legitimate and even convinced her own brother to invest £250,000.
In a statement read to the court, she said she felt ‘huge remorse’ for her role in the scam, adding: “I want to sincerely apologise to all those who have been affected, including my own brother.”
In addition to their jail terms, both have been banned from being directors of companies for eight years. A confiscation hearing, to recover what might remain of the profits of the scam, is set to take place in November.
A NUMBER of acts for Rochdale Folk Festival, which runs from Friday, June 10 to Sunday, June, 12 has been announced.
● Live folk, roots and acoustic artists and bands will be playing inside The Flying Horse on Friday, June 10 until Sunday, June 12.
The music runs from 7.30pm – 11pm on the Friday, 12.30pm – 11pm on Saturday and 12.30pm – 5pm on Sunday.
Entry is free but booking directly with The Flying Horse is advised to avoid disappointment.
Drop The Floor will be bringing Irish music to The Flying Horse on June 10 and Johnny Campbell will be performing on Saturday, June 11.
Tap your foot to the rhythm of Hebble’s traditional Irish songs and tunes and meet the exciting new folk duo Mama’s Broke on Saturday, June
11. Folk singers, Bryony Griffith and Alice Jones, will be performing at the venue but their appearance date has yet to be confirmed.
A full timetable will be published
The Flying Horse
in May.
● Enjoy free live music at Touchstones Rochdale on Saturday, June 11 and Sunday, June 12.
On Saturday the music runs from 12-5pm and on Sunday from 12-4pm.
Be sure to be blown away with the talent of Rochdale Music Service’s finest young folk musicians, directed by Cliff Woodworth.
Young folk musicians between the ages of 12 and 17, That’s all Folk!, will be starring at Touchstones on Sunday, June 12.
The award-winning group has performed across the country including the Royal Albert Hall in 2021.
The full schedule will be advertised in May.
● The Medicine Tap will also be hosting some fantastic live folk, roots and acoustic bands on Friday, June 10 until Sunday, June 12.
The music runs from 7-10.30pm on Friday, 12-10.30pm on Saturday and 12-4pm on Sunday.
Folk singers Bryony Griffith and Alice Jones will be making an
Touchstones The Medicine Tap
appearance on Friday, June 10.
Award-winning modern folk trio Harp and a Monkey will be entertaining audiences at The Medicine Tap with their poignant, thoughtprovoking and melodic song and stories about life, love and remembrance on Saturday, June 11.
Be inspired by Honey We Three’s captivating traditional Irish music and American folk and their blend of intricate vocal harmonies and soothing rhythm of double bass on Saturday, June 11.
Bonfire Radicals will play a musical blend of folk traditions with their own original twist at The Medicine Tap but a date has yet to be confirmed.
As a special project for Rochdale Folk Festival 2022, That’s Auld Folk! will be bringing back past members of That’s All Folk! as a celebration of the incredible youth folk music in Rochdale on Sunday, June 12.
Johnny Campbell will also play at the venue.
Entry is free but booking directly with The Medicine Tap is advised to avoid disappointment.
A full timetable will be published in May.
● Join The Baum for free folk sessions running from Friday, June 10 until Sunday, June 12.
Friday from 7pm – 11pm, Saturday from 12pm – 11pm and Sunday from 12pm – 5pm.
Session leaders will be announced in May 2022.
Free live music at Hoochi Koochi is coming to town on Friday, June 10 and Saturday, June 11.
Friday runs from 8-11pm and Saturday runs from 2.30-8pm.
Bonfire Radicals will be setting off instrumental fireworks at Hoochi Koochi on Friday, June 10.
There will be further music after 8pm as part of Hoochi Koochi’s usual programme.
Johnny Campbell will also play at Hoochi Koochi.
The full line-up will be published in May.
● Vicolo Del Vino is hosting free live music on Saturday, June 11 from 12-9pm.
The Baum Vicolo Del Vino
Entry is free but booking a table is recommended to avoid disappointment.
Contact the venue to book – vicolos@hotmail.com
Artists playing at the venue will be published in May 2022.
Look out for our outdoor pop up entertainment around Rochdale Town Centre on Saturday, 11 and Sunday, June 12.
Entertainment includes morris dancing, music, singing and circus skills displays on Bailie Street, Riverside and The Butts.
A full timetable will be published in May.
● Join in the fun at St Mary In The Baum for free music, activities and entertainment on Saturday, 11 and Sunday, June 12.
Pop-up entertainment including music, singing and dancing takes place across both days and Sunday sees a very special Sunday Morning Service – ‘Folk Mass’ takes place at
9.15am. A full timetable of events will be published in May.
St Mary In The Baum