A bogus financial adviser who used QROPS pension schemes to manipulate his ‘clients’ pension funds to avoid paying tax has been jailed.

Colin Pearson, 47, was jailed at Hull Crown Court for three years. Mr Pearson avoided paying tax of over £1.9m and used the money to acquire expensive cars and own luxury homes in the UK and Cyprus.

He had posed as a financial adviser and persuaded clients to release over £3.4m from their pension funds.

He then completed pension transfer forms on behalf of his clients by claiming the funds were going abroad. This avoided paying any tax due on the pension withdrawals.

He also provided fake documentation to register two overseas pension schemes and used false names, addresses and signatures to ensure the funds were released without delay.

His fraudulent actions gained him commission payments of over £377,000.

Qrops schemes allow an individual to transfer pensions overseas and have Government approval providing certain requirements are met.

Bob Gaiger from HM Revenue and Customs said: “Whilst Pearson was living a life most people could only dream of, he left the individuals he conned out of pocket and without the pension funds they expected.”

On sentencing Mr Pearson, His Honour Judge Richardson QC said: “You are branded a criminal, your life is utterly destroyed and you are totally dishonest in your deceitful actions.”