Two convicted 'pension liberation' fraudsters have been ordered to hand over the majority of their assets after a Proceeds of Crime investigation by The Pensions Regulator (TPR).

The TPR says that the conclusion of its investigation into a £13m pension fraud means that the independent trustees running schemes hit by the fraudsters’ crimes can take steps to push ahead with claims on the Fraud Compensation Fund.

Under the Proceeds of Crime Act, Alan Barratt, 64, of Burnham Road, Althorne, Essex and Susan Dalton, 68, of Brookdale, Rochdale were ordered to pay £9,771 and £25,010 respectively at Southwark Crown Court yesterday (Wednesday).

Mr Barratt and Ms Dalton were jailed for a total of 10 years in April 2022 after admitting to taking part in a “criminal enterprise” that tricked more than 200 savers into transferring their pension pots into fraudulent schemes they controlled.

The two were jailed for their part in the £13m ‘pension liberation’ scam which saw hundreds of savers lose their pension pots following a fraudulent pension transfer.

Some 245 pension savers were persuaded between 2012 and 2014 to transfer a total of £13.6m in pension savings into 10 pension schemes controlled by the pair. The funds were then fraudulently moved elsewhere resulting in nearly all of the pension savings being lost.

Many of the victims were lured to trust the pair by the promise of a ‘free pension review’ - a method which is often used by scammers to find victims.

Victims were told that their money would be invested in low risk investments however it was mostly invested in esoteric projects, including so-called ‘truffle trees’ and overseas property, or spent on funding luxury lifestyles for some of the scammers.

TPR investigators said the sums represent the “vast majority” the duo’s remaining assets. If further assets are later found to be linked to the pair, the TPR says it can ask the court to increase the amount payable under a confiscation order.

Nicola Parish, TPR’s executive director of frontline regulation, said: “We already put fraudsters Barratt and Dalton behind bars, now we are depriving them of the remainder of their ill-gotten gains.

“Our thoughts continue to be with the pair’s victims, many of whom saw their lives devastated by Barratt and Dalton’s crimes. Significantly the end of the POCA proceedings brings a claim on the Fraud Compensation Fund a step nearer.”

Mr Barratt received a prison sentence of five years and seven months while Ms Dalton was sentenced to four years and eight months in prison. If they fail to pay, they risk a further jail term and will still be liable for the ordered sums, plus interest.

The money will be returned to the affected pension schemes which are now being run by the independent trustee Dalriada Trustees Limited.