The Pensions Regulator (TPR) has today (Friday) published a report into regulatory and criminal action taken against a former pensions trustee who illegally invested schemes’ money into his business.
It also details how TPR acted to prohibit Stuart James Garner, 54, the former owner of Norton Motorcycles, from acting as a pension trustee again – a ban which came into effect last month [September].
The report explains how in March 2022 Garner, of Park Lane, Castle Donington, Derby was sentenced to eight months in prison, to run concurrently and suspended for two years, for each of three counts of breaching employer-related investment rules.
Derby Crown Court had heard how Garner left three pension schemes in his trusteeship, which were associated and connected with Norton Motorcycles, with a combined shortfall of £10 million.
During sentencing, Her Honour Judge Nirmal Shant, said Garner had been reckless and caused profound harm to his victims, both financially and to their mental wellbeing.
Nicola Parish, TPR’s Executive Director of Frontline Regulation said: “Our intervention report details how we and other agencies acted against Stuart Garner, including a successful prosecution for offences relating to serious breaches of pension investment duties.
“By taking money from schemes in his care to invest in his failing business, contrary to his duties as a trustee, Garner showed a lack of integrity, competence and capability. It is right he has now been banned from ever acting as a trustee again.
“Our focus remains on supporting the independent trustee in pursuing compensation for scheme members through the Fraud Compensation Fund.”
Garner was also disqualified from acting as a company director for three years, which also prevented him acting as a trustee during the period of disqualification and ordered to pay TPR’s costs of £20,716.
With the company director ban due to end in 2025, the report explains how TPR has now prohibited Garner from ever acting as a trustee again following a decision by TPR’s determination panel (DP).
The DP found Garner was not a fit and proper person to be a trustee of trust-based pensions schemes as he lacked the integrity, competence and capability to hold such a position.
The prohibition means it would be a criminal offence if he acted as a scheme trustee again.
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