The men were sentenced to a combined total of 43 years imprisonment for their part in a £107.9m fraud which preyed on the good consciences of high-net-worth Individuals who wished to make the most of the tax breaks available on eco-investments.
Justice will be served
As well as time in prison. the five fraudsters have also been ordered by Old Bailey and Southwark Crown Court to repay £20m to HMRC. If they fail to do this they could face another combined 39 years in prison. Furthermore, HMRC says that it will look to trace and confiscate other assets belonging to the men.
Martin Lynagh, from HMRC’s fraud investigation commented, “This was a carefully-planned and complex attack on the tax system and now the men have to pay up or spend even more time in prison, and still owe the money.” *
Mr Lynagh added that the organisation’s work doesn’t end with a conviction and that they will endeavour to reclaim stolen assets so that the money can go on to fund public services in the UK.
It is anticipated that the men have hidden a large portion of their profits in opaque offshore jurisdictions and that in order to repay the money they owe will have to cash in pensions and liquidise assets in the UK and Dubai.
How the scam worked
The criminals convinced wealthy investors to put their money into carbon emission reduction certificates. These certificates are part of a scheme that aims to assist countries in meeting United Nations environmental emissions targets.
However, the investors’ money never went anywhere near the certificates, instead it was invested in property in Britain and Dubai, with details of the investments never disclosed to HMRC.
Trusted investment advice you can rely on
For more than 30 years, Blacktower Financial Management has been providing trusted international financial services and wealth management advice to clients in the UK, Europe and across the globe. We are a fully regulated and licensed firm and can help you find a retirement investment strategy and asset allocation that aligns with your goals and circumstances.
Wherever you live, if you are an expat and are looking for international financial advice from a team of specialist cross-border advisers, contact your local office today.
* https://www.ftadviser.com/regulation/2019/12/16/tax-fraudsters-to-pay-back-20m-over-fake-eco-investments/ Accessed 18-12-19
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
The days of the “job for life” with a single employer are, for most of us, long-gone and we are now far more likely to have multiple jobs paying into a number of different pension schemes. This means tracing old pensions when you retire – whether defined benefit, defined contribution or private stake holder. In order to get an accurate and full idea of your pension wealth it is essential that you begin finding lost pensions to factor every single one into a total valuation.