London Daily

Focus on the big picture.
Thursday, Jul 31, 2025

Pension fraudsters jailed after £13m scam

Pension fraudsters jailed after £13m scam

Two fraudsters have been jailed for their part in a series of scams in which 245 people lost millions of pounds in pension savings.

Alan Barratt, 62, and Susan Dalton, 66, tricked people into transferring savings to schemes supposedly investing in property or "truffle trees".

One victim told the BBC that the fraudsters had wanted to secure their own pension "by taking mine instead".

Barratt and Dalton admitted fraud based on their roles as pension trustees.

More than £13m of pension savings were transferred, and the pair forwarded most of the money to the mastermind of the criminal enterprise, David Austin, from Guildford in Surrey. A previous case heard evidence that he used it to live a life of luxury including ski holidays and trips to Dubai.

It was funnelled offshore and funded his businesses, was used to pay others involved in the operation, and enriched himself and family members. He killed himself in 2019, before the criminal investigation was completed.

At Southwark Crown Court on Friday, Barratt was jailed for five years and seven months while Dalton was jailed for four years and eight months. Both stood and looked straight ahead in the dock as the sentences were handed down.

Passing sentence, Judge Gregory Perrins said the pair caused "such misery to so many people", with victims suffering mental health problems and some even attempting suicide.

"Each account that I have read is a story of a life ruined by your actions and you should both be ashamed," he said.

'I have nothing'


Former mineworker Stephen O'Reilly was among their victims, lost more than £100,000, and now has to work in a bookmakers to pay his bills.

"My pension has gone. I am going to have to work for the rest of my life," the 62-year-old said.

Stephen O'Reilly thought he was investing in overseas property


He answered an advert for a free pension review 10 years ago, in the hope he could release some funds to renovate and sell homes in Spain.

"My kids are grown up but I wanted to make some money to leave to them," he told the BBC.

The supposed review led to a call from Dalton after which he transferred £114,000 in pension savings. He was given a small commission, which was actually part of his own pension, and told some of the money would be invested in overseas property.

He expected to receive a lump sum at the age of 55, and had even ordered a new car in anticipation. The money never arrived and when he enquired, he discovered he had been the victim of a scam.

Previously, his mineworker's pension from 14 years working underground had been inappropriately transferred and he received compensation. This time, the money had disappeared entirely.

"It is a lesson learnt, and now I can only hope some other people will learn from my lesson," he said.

'I was just trying to secure a future'


Pauline Padden had received a text about a pension review when she was 50, and eventually transferred £45,000 - thinking she was investing in property in holiday resorts in the Caribbean.

She became suspicious when she did not receive any paperwork, and was then notified that she had been the victim of a scam.

Pauline Padden works as a critical care nurse


"If that money had been properly invested, it would have meant I could retire when I wanted to retire," said Mrs Padden, 58, who has been a critical care nurse for 40 years.

"Now that has been completely taken from me. It has gone forever. I'm not sure I will ever see that money again - I doubt it."

She said the experience had left her anxious and she finds it hard to trust people. Her family are worried about her.

"I felt stupid. I felt duped. That is not a nice feeling to have," she said, urging others to be wary of similar offers.

While she faces many more years working in the stressful surroundings of the NHS, she describes those behind the scam as "greedy" and hopes their conviction will be a deterrent to others.

"They are not much different in age than me. They were looking for their own pension pot, and decided to take mine instead - and that of many people as well as me," she said.

"I was just trying to secure a future so I wouldn't have to depend on the state, but they have just happily and willingly stolen that money off me. They knew when they were taking it. They knew, and they just took it anyway."

Victims still without a refund


Barratt, Dalton, and Austin were among those who ran 10 dishonest pension schemes. In 2018, Austin and Barratt were ordered to repay £7.7m and Austin and Dalton £5.9m to those who had lost out.

However, none of the victims have yet to receive a penny of the money they should have been refunded.

The High Court ruling, reported by the BBC at the time, was a legal first as it came after an application from The Pensions Regulator, which had been granted new powers.

One victim in that case said he and his wife were assured their pensions would be invested in low-risk investments. They were then sent details of a firm producing so-called truffle trees in the West Country.

Criminal investigations followed the civil proceedings, which culminated in Friday's sentencing.

Barratt, of Burnham Road, Althorne, Essex, and Dalton, 66, of Brookdale, Rochdale, Lancashire, both admitted charges of fraud by abuse of position in breach of the Fraud Act 2006 arising from their roles as trustees of pension schemes.

In addition to their jail terms, both have been banned from being directors of companies for eight years. A confiscation hearing, to recover what might remain of the profits of the scam, is set to take place in November.

On Friday, Southwark Crown Court heard that Barratt, an "unsophisticated" former photocopier salesman, trusted Austin and did not want to "rock the boat" because he was paid more than he had ever been paid before. Initially, he believed what he was doing was lawful, the court heard.

In mitigation for Dalton, the court heard that she "turned a blind eye" to the fraud. In a statement read in court, she said she apologised to victims and punished herself every single day for her part in the fraud.

Pensions minister Guy Opperman said he welcomed the sentence and thanked the Pensions Regulator "for its role in bringing the perpetrators to justice".

Lead lawyer for the regulator, Carl Dowling, branded the scam "despicable", adding the sentence sent "a clear message".

"Pension scams ruin lives. Barratt and Dalton's crimes have had a devastating impact on their victims," he said.

Newsletter

Related Articles

0:00
0:00
Close
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
The British propaganda channel BBC News lies again.
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
×