There is set to be a huge flood of cases involving SIPP claims and compensation over the next 12 months, after three men were sentenced due to their fraudulent activity amounting to 23 million pounds.
The three guilty men were sent to jail on Monday after a hearing at Southwark Crown Court concerning a fake investment plan involving financial products based on “green biofuel” plantations in Cambodia. I know, it couldn’t really sound any shiftier could it?
How the scam worked was that the men were selling the products with a SIPPs wrapper, and nearly 300 people and investors were affected. Some of the people affected have been said to have lost their entire life savings in the scam.
Some of the victims are currently seeing if they can win back compensation for the mis-selling of SIPPs with specialist solicitors and lawyers who work on SIPPs claims.
Jane de Lozey, joint head of fraud at the Serious Fraud Office said:
“This is the first of a number of Serious Fraud Office cases to come to trial involving the mis-selling of investment products connected with self-invested personal pension plans.”
A spokesman for The Financial Ombudsman Service, an independent complaints body, also has this to add on the case involved SIPPs mis-selling:
“We are receiving 80 new complaints a month about SIPPs and are finding in the consumer’s favour in 56 per cent of those cases.”
I also got the chance to speak to Darren Turnpike who is one of the management team at Expert Pension Claims. They are a company specialising in SIPPs claims. They have already helped many people in the UK claim back money and compensation after they were taken advantage of. His view on the matter was as follows:
“In our experience, self-invested personal pensions or SIPPs have been very open to mis-selling and in particular fraudulent people. This is due to the fact that pension savings will often be the only things a person has available to them to invest in opportunities. We have spoken to many victims who have been mis-sold SIPP investments and are now working closely not just with us, but also the police.”
Not every SIPP fraud case where mis-selling has occurred will result in a criminal investigation though. Some could be down to poor practice from financial advisors, rather than any clear criminal intent. Having said that, it’s still possible to claim back compensation in cases like this where you believe that SIPP mis-selling has occurred.
It is certainly an interested development, and one which our own solicitors will be keeping a close eye on as we are committed ourselves to representing our clients where they have been mis-represented.