UK Pension Scams Are All in the Family

Organized crime couples and families are swindling millions from pensions.

Organized crime gangs made up of married couples and families are scamming pensioners out of millions of pounds, according to The Pensions Regulator (TPR), and Action Fraud, the UK’s national reporting center for fraud and cybercrime.

UK police, regulators, and government are conducting criminal investigations into pension fraud where family ties are a common theme. TPR said that since the cases are ongoing, it can’t provide further details, but it did reveal that it has evidence of criminal behavior worth tens of millions of pounds involving siblings, married couples, and parents with their adult children.

“Scammers who siphon off savings built up over decades are the lowest of the low,” Guy Opperman, the UK’s minister for Pensions and Financial Inclusion, said in a statement. “We’re determined to put a stop to the misery these callous crooks inflict, which is why we’re supporting the work being done to stamp out pension theft.”

TPR and Action Fraud said that in some instances, the crime families have hired rogue financial experts with specialist pension knowledge, including accountants, advisers, and trustees, to help in running large-scale scams. The organizations said that these financial experts are essential in helping the families commit their crimes.

Never miss a story — sign up for CIO newsletters to stay up-to-date on the latest institutional investment industry news.

The familial fraud was found during intelligence gathering by members of the multi-agency Project Bloom group, which was set up to tackle pension scams. The group said that several “fraudster families” are targeting pension holders.

Project Bloom is a collaboration among government departments, agencies, regulators, law enforcement bodies, and representatives of the pension industry. The partners include TPR, the Financial Conduct Authority, the Department for Work and Pensions, HM Treasury, the Serious Fraud Office, City of London Police, and The Pensions Scams Industry Group (PSIG), among others.

The PSIG, a multi-industry initiative, was established to combat pension scams. It has published guidelines for key steps to help identify possible pension scams, as well as provide practical guidance such as checklists and sample letters. TPR said pension plans have been adopting PSIG’s guidelines in the three years since its launch and said it has resulted in the prevention of thousands of transfers to unauthorized arrangements, saving many people from a likely loss of pension savings.

According to TPR and the FCA, victims of pension scams have lost an average of £91,000 each in 2017.

Related Stories:

Reckless Pension Bosses Could Get Seven Years in Prison

UK Pension Scam Victims Lose an Average of £91,000

UK Regulators Issue Joint Pensions Strategy

Tags: , , , ,

Texas Municipal Makes $500 Million in New Commitments

Private equity commitments totaled $300 million, part of an effort to boost the asset class.

The board of the Texas Municipal Retirement System has made commitments totaling $500 million to four private equity funds and one infrastructure fund, as well as reallocating $200 million to an existing real estate fund, pension officials confirmed.

The fund manages a total of $27.5 billion in assets.

The largest private equity commitment was $100 million to FGN 2018 Partner Fund run by Foundry Group, a Bounder, Colorado, venture capital firm. Foundry manages close to $2.5 billion. Agenda material for the system’s Feb. 14-15 meeting says that Texas Municipal will co-invest $100 million in a separate account that will target high potential and access-constrained early-stage venture capital investments.

The other three private equity commitments are:

Want the latest institutional investment industry
news and insights? Sign up for CIO newsletters.

  • A $50 million commitment to Reverence II, a buyout fund managed by Reverence Capital Partners. The agenda material says Reverence Capital is a New York-based investment firm founded in 2013 that focuses on the middle market. It invests in financial services companies, such as asset/wealth management bank and non-bank finance, payments and services, and insurance. The fund is targeting $750 million.
  • A $50 million commitment to Arcline I, a buyout fund managed by Arcline Capital Partners in San Francisco. Agenda material says the fund focuses on acquiring middle-market industrial companies and transforming their business model. The fund is targeting $1.2 billion in the fund.
  • A commitment of $50 million to PSG IV, the growth equity affiliate of Providence Equity Partners. Agenda material says the fund will target investments in lower middle-market software and technology-enabled businesses. The Providence, Rhode Island, based firm is targeting $1.75 billion in the fund.

The agenda material says Texas Municipal has a goal of making $525 million in private equity commitments in 2019. The pension system has private equity investments totaling $566 million as of Dec. 31. The system wants to increase its private equity investments to more than $2.2 billion in the next eight years as it builds its private markets portfolio, show presentations at the February 14-15 board meeting.

In the infrastructure arena, the board approved Texas Municipal’s commitment of $200 million to Harrison Street HSSI, a fund managed by Harrison Street, an investment management firm in Chicago with a focus on real estate storage facilities, education, and healthcare.

Agenda material shows the firm is now expanding into infrastructure investments. It says the fund will develop a portfolio of investments in social infrastructure, investing in the healthcare, education, government, and utility sectors. The fund will be part of Texas Municipal’s real return asset class, whose investments total $2.5 billion.

The board also approved a reallocation of $200 million to H/2 Partners, a real estate firm. The firm already invests the money for the pension system. Agenda material says the firm specializes in providing access to liquid private commercial real estate debt markets by participating in the origination and structuring process of securities and loans. It was unclear at press time as to how the reallocation differs from the original commitment.

The real estate asset class totals $2.6 billion for the pension system.

Related Stories:

Texas Teachers’ Closes Out Year with $1.8 Billion in New Commitments Across 12+ Strategies

Texas ERS Terminates Decade-Old Relationship with Investment Consultant

Britt Harris, Texas Endowment to Review Investments in ‘Scrutinized Entities’

 

Tags: , , , , , ,

«