Two financial advisers who lived a life of luxury after convincing hundreds of pensioners to transfer their plans to a front company in a £20million scam were each sentenced to six years in prison today.
Between September 2006 and April 2013, Rikki Nicholls, 56, and Mark Kelly, 51, persuaded 285 victims to transfer their plans to their company, PCD Wealth and Pensions.
The money was funneled into risky investments without the consent of the pensioners, who were being charged hidden fees while the scammers paid themselves hefty premiums, Southwark Crown Court heard.
Nicholls and Kelly denied but were convicted after a more than five-month trial on conspiracy to commit fraud and transfer of criminal property.
Rikki Nicholls, 56, pictured, and Mark Kelly, 51, persuaded 285 victims to transfer their plans to their company, PCD Wealth and Pensions, between September 2006 and April 2013
Mark Kelly (pictured) and his partner Nichols put the money in risky investments without the consent of the pensioners, who were charged hidden fees while the scammers paid themselves hefty premiums
Nicholls and Kelly, pictured, denied but were convicted of conspiracy to commit fraud and transfer of criminal property after a trial that lasted more than five months
Prosecutor Alex Mills previously said, “There were very significant actual losses and a very significant risk of loss.”
“Both defendants were concerned only for their own financial gain.”
In a statement read in court, John Braddick, 77, said his losses had caused him “physical, emotional and spiritual suffering.”
Mr Mills said: “His life has been put on hold. He couldn’t plan his future” and he spent less time with his wife because “their relationship was being unnecessarily strained.”
Mr Braddick, who was being treated for various medical conditions, 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 scheme,” he said in his statement.
Geoffrey Williams, 65, described the experience as a “nightmare” and said “the whole affair is always in the background”.
Kelly’s defense attorney, David Wood, argued that intended loss was not a factor in the case.
“These systems should work. If these funds had worked as intended, everyone would have made money, including the investors.’
The couple were jailed by Southwark Crown Court for six years after being found guilty at the marathon trial
He said Equitable Life, one of the companies that encouraged retirees to siphon off their money, was doing poorly at the time.
“A lot of people wanted to move their money away from Equitable Life because they were losing money.”
“It’s an isolated insult. Since then there has been no more insult. Mr Kelly is a hardworking, loyal, caring husband and father with many positive qualities.”
“He will undoubtedly never appear in court again. He understands the catastrophe this conviction means for him and his family. I ask you to keep the sentence as short as possible.’
Nicholls’ defense attorney Nathaniel Rudolf said: “We reiterate that there was never any intent to cause casualties. The intention was to win. It was always in everyone’s interest that the project was successful.”
Various members of Nicholls’ family, including his sister, wrote letters to the court in which Mr Rudolf said they “reflect the whole man, the impact it had on his children and especially his grandchildren”.
“You’re not trying to downplay what he did,” his attorney added.
“It is testament to the man standing before you today that after his release 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 were “two men of hitherto good character” but said “each of you has lost your good name”.
“It was said that it was in everyone’s interest that the venture be successful,” the judge said.
“But I don’t think that was your primary goal. Her goal was to make as much money as possible.
“Each of you has made a significant amount of money in a short period of time.”
“You lived well on it and spent it well. leave was taken. Houses were bought and well furnished.
“Your plan was what was going on and you addressed documents to yourself so investors were completely in the dark.”
“I am satisfied that the fraudulent activity has taken place over a significant period of time.
“Each of you has abused your position of power. You have let down those who placed so much trust in you and entrusted you with their life savings.’
Nicholls, from Bromsgrove, Worcestershire, and Kelly, from Wilmslow, Cheshire, were both sentenced to six years in prison.
