Colin Pearson has been sentenced to 3 years in prison at Hull Crown Court for committing over £1.9mtax fraud through transferring ‘clients’ pension funds…
On sentencing at Hull Crown Court, His Honour Judge Richardson QC branded the tax fraudster as ‘a criminal’, who was ‘totally dishonest’ in his ‘deceitful actions’.
A previous employee of the Food Standards Agency and past owner of a McDonalds franchise, Pearson fraudulently posed as a financial advisor and manipulated his so called ‘clients’ to withdraw over £3.4m from their pension funds.
The serious Tax Fraud was committed by Pearson through a number of tactics.
To avoid paying £1.9m tax on the withdrawn pensions, Pearson falsely claimed that the £3.4m was going abroad, when filling out UK pension transfer forms on his ‘clients’ behalf.
To avoid suspicions of tax fraud Pearson had set up two overseas pension schemes using false documentation, prior to submitting the bogus UK pension transfer forms.
Pearson even went to great lengths to hide his tax fraud tactics by even making fraudulent telephone calls to UK pension companies, where he posed as the policy holder.
A spokesman for HMRC, said:
“Whilst Parson was living a life most people could only dream of, he left the individuals he conned out of pocket and without pension funds they expected.
“HMRC will not tolerate this type of blatant fraud and will investigate and prosecute those found to be involved in stealing from the public purse. “
To lure in potential ‘clients’ Pearson created a fake PowerPoint presentation with articles taken off the internet that promoted his pension tax fraud scam.
Pearson managed to con a total of 30 UK pension holders and made £3.4m worth of unauthorised transfers that avoided £1.9m of tax.
Pearson kept a portion of the transfer funds as commission for himself before passing the rest back to the pension holders themselves.
It is estimated that out of the £3,440,143 that was released from the 30 UK pension accounts only £2,997,018 was returned to Pearson’s ‘clients’.
Throughtax fraud Pearson was able to earn a healthy commission, with payments totalling more than £377,000.
Owning expensive cars and homes in both the UK and Cyprus, it seems that Pearson used commission he made throughtax fraud to maintain his extravagant lifestyle.
Kevin Kinsella Jnr, of KinsellaTax, said:
“Colin Pearson committed serious tax fraud by taking illegal steps to set up fake overseas pension schemes and falsify UK pension transfer forms for so called ‘clients’.
“I don’t know how long he thought he could run his tax fraud scam without suspicion from HMRC.
“Pearson is lucky to be facing only three years in prison as serious tax fraud offences can carry a prison sentence of up to seven years.”
Tax Fraudoffences can carry criminal tax prosecutionand a lengthy prison sentence.