Two financial advisers who lived a life of luxury after persuading hundreds of pensioners to transfer their plans to a bogus company in a £20 million scam were today sentenced to six years in prison each.
Between September 2006 and April 2013, Rikki Nicholls, 56, and Mark Kelly, 51, persuaded 285 victims to hand over their plans to their company PCD Wealth and Pensions.
The money was funneled into risky investments without the consent of the pension holders who were charged hidden fees while the fraudsters paid themselves huge bonuses, Southwark Crown Court heard.
Nicholls and Kelly denied but were convicted of conspiracy to defraud and transfer criminal property after a trial lasting more than five months.
Rikki Nicholls, 56, pictured, and Mark Kelly, 51, persuaded 285 victims to hand over their plans to their company PCD Wealth and Pensions between September 2006 and April 2013.
Mark Kelly, pictured, and his partner Nichols funneled the money into risky investments without the consent of the pensioners who were charged hidden fees while the fraudsters paid themselves huge bonuses
Nicholls and Kelly, pictured, denied but were convicted of conspiracy to defraud and transfer criminal property after more than five months’ trial
Prosecutor Alex Mills previously said, “There were very significant actual losses and a very significant risk of loss.”
“Both defendants were only concerned about their own financial gain.”
In an impact statement to the court, John Braddick, 77, said his losses had caused him “physical, emotional and mental suffering.”
Mr Mills said, “His life was put on hold. He couldn’t plan his future” and he spent less time with his wife because of “unnecessary pressure on their relationship.”
Mr Braddick, who was being treated for several ailments, feels ‘completely betrayed’.
John Savage, 59, said he now suffers from severe depression and low self-esteem.
“I feel stupid for falling for such a plan,” he said in his impact statement.
Geoffrey Williams, 65, described the experience as a “nightmare,” saying “the whole affair is always in the background.”
Kelly’s attorney David Wood argued that the intended loss played no part in this case.
“These arrangements were meant to work. If these funds had worked as intended, everyone would have made money, including the holders of the investments.’
The pair were both sentenced to six years in prison by Southwark Crown Court after they were found guilty after the marathon trial
He said Equitable Life, one of the companies where retirees were encouraged to divert their money, was doing poorly at the time.
“A lot of people wanted to take their money from Equitable Life because they were losing money.”
“This is an isolated crime. Since then there has been no insult. Mr Kelly is a hardworking, loyal, caring husband and father with many positive qualities.’
He will no doubt never return to court. He understands the disaster this sentencing will mean to him and his family. I ask you to make the sentence as short as possible.’
Nicholls’ attorney Nathaniel Rudolf said, “We reiterate that it was never our intention to cause a loss. The intent was to win. It was always in everyone’s interest for the plan to succeed.’
Several members of Nicholls’ family, including his sister, wrote letters to the court, which Mr Rudolf says “reflect the full man, the impact on his children and especially his grandchildren.”
“They’re not trying to downplay what he’s done,” his lawyer added.
“It is proof of the man standing before you today that when he was released on bail he went to Dubai to see his daughter and grandchild and then came back.”
Nicholls now suffers from depression and is on medication, the court heard.
Judge Adam Hiddleston accepted that both Kelly and Nicholls are “two men of good character,” but said “each one of you has lost your reputation.”
“It has been said that it was in everyone’s best interest for the plan to succeed,” the judge said.
“But I don’t think that was your primary goal. Your goal was to make as much money as possible.
“You have all earned a considerable amount in a short period of time.”
‘You have lived well on it and spent it. Vacations were taken. Houses were bought and well furnished.
“Your plan was what was going on and you sent documents to yourself so that investors were completely in the dark.”
“I am convinced that the fraudulent activity has taken place over a significant period of time.
“You have all abused your positions of power. You have abandoned those who had great faith in you and entrusted you with their savings.’
Nicholls, of Bromsgrove, Worcestershire and Kelly, of Wilmslow, Cheshire, were both sentenced to six years in prison.