Kevin Phelan, the third man involved in a £3.7 million pension liberation fraud, was sentenced at Leeds Crown Court on 28 May 2026. The fraud targeted 74 victims across Yorkshire and involved unlawful access to pensions between 2013 and 2015.
The Yorkshire and Humber Regional Organised Crime Unit (YHROCU) led the investigation into this elaborate scam, which deliberately avoided tax payments.
Mohammed Bashforth, Daniel Giles, and Kevin Phelan orchestrated a scheme that promised early, tax-free access to pension funds through fake investments. They produced misleading brochures and offered cashback incentives, enticing victims to transfer pensions worth over £3.7 million into accounts controlled by them. The scam defrauded HM Revenue and Customs of approximately £700,000 in unpaid tax.
In August 2025, all three men were found guilty of conspiracy to commit fraud by false representation and conspiracy to cheat the public revenue. Giles, who admitted an additional tax evasion charge, received an 11-year prison sentence and a 12-year ban from acting as a company director. Bashforth was jailed for five years and disqualified for five years. Phelan’s sentencing followed separately with a seven-year term and a 12-year disqualification.
The defendants operated from offices in Wakefield and Leeds, using a network of ‘introducers’ to persuade pension holders to transfer their funds. They falsely claimed their scheme avoided significant tax charges, which can reach up to 55%, and concealed the misappropriated money behind fake transactions. The court heard how they knowingly caused financial losses to both victims and taxpayers.
Ramona Senior, head of YHROCU, said: “This was a complex investigation revealing the defendants’ greed and dishonesty. They treated pension holders’ savings as cash to dip into with no regard for victims’ financial hardships.”
HM Revenue and Customs’ Anthony Burke advised pension holders to seek professional advice and warned against schemes promising early pension access, which often lead to heavy tax penalties. He urged the public to research legitimate pension rules via GOV.UK.
To protect your pension, reject unsolicited pension offers as cold-calling about pensions is illegal in the UK. Take time to consider pension decisions and consult financial advisers. Verify companies with the Financial Conduct Authority before transferring pensions. Be sceptical of promises of guaranteed high returns, which carry significant risks. Report suspected pension scams immediately via Report Fraud.
Further investigations are ongoing under the Proceeds of Crime Act to recover fraudulent gains related to this case.
Originally published by UKNIP.
