Northern Irish businessman Kevin Phelan (61), who acted as a land agent for Michael Lowry and Denis O’Brien in England in the 1990s, is a defendant in an ongoing criminal trial in Leeds where he is accused of conspiracy to cheat and conspiracy to commit fraud by way of false representation.
Mr Phelan is facing charges that he and others conspired together in a “pension liberation” fraud scheme about 10 years ago, which led policyholders in the UK to transfer their pensions to entities associated with Mr Phelan and the other defendants. The defendants have pleaded not guilty.
The trial began earlier this year, has heard 25 days of evidence before a jury in Leeds Crown Court, and is likely to continue for several weeks.
Mr Phelan, of The Diamond, Co Monaghan, was a key figure in the money trail investigated by the Moriarty tribunal into links between Mr O’Brien and Mr Lowry. Mr Phelan did not give evidence to the tribunal.
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The tribunal was set up in 1997 to investigate payments to politicians.
One of the three charges he is facing in the Leeds court is that he and four other defendants did, between January 2013 and December 2014, dishonestly make representations to pension policyholders.
They are accused of making gains for themselves or losses to the policyholders so that money was transferred to the bank accounts of the Cornerstone Friendly Society or Cornerstone Direct.
It is alleged they made dishonest statements that the money would be invested in pension funds to the benefit of the policyholders “whereas in fact those monies were appropriated to the benefit of” Mr Phelan and four other defendants.
On the conspiracy to cheat charge faced by Mr Phelan and others, it is alleged that, during the same period, they and others conspired to defraud the British revenue by creating, marketing and administering a pensions liberation scheme.
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It is alleged that they told lies that led holders of pension policies to transfer money to bank accounts in the name of a company called Distinctive Koi Ltd or the Cornerstone Friendly Society.
Pension liberation schemes are aimed at gaining early access to pension funds.
The charges being faced by Mr Phelan and others include the alleged operation of such a scheme so that policyholders transferred the value of their pensions via a Sipp (a self-administered personal pension) or QROPS (a qualifying recognised overseas pension scheme) to the bank accounts of Cornerstone Friendly Society or Cornerstone Direct.
They are being accused of defrauding HM Revenue through the schemes.
On Wednesday, pensions expert Tim Beck told prosecuting counsel Tim Hannam KC how he and his company, Broadwood Assets, had dealings with defendants Alex Hyett, of Hertford Street, London, and Dan Giles, of Jacob Drive, Coventry, about the pension structure.
He said he attended a meeting in the Malmaison Hotel, in Piccadilly, Manchester, with Mr Giles “who pulled up in his Bentley”.
The meeting was also attended by Mr Phelan, said Mr Beck, although he could not remember what he was told as to why Mr Phelan was there.
Broadwood later received commission payments arising from policy transfers to Cornerstone and sent invoices to Sequentia Capital SA and the Sequentia Group.
He said he asked Mr Giles who Sequentia was and was told they were doing administration work for Cornerstone.
The witness gave evidence about the involvement of a Gibraltar company in the pension structure and being told by Mr Giles that a company associated with Mr Hyett, Pavillion Capital Partners, was doing due diligence in relation to the arrangement.
