No pensions payback let-off for ex-Norton boss Stuart Garner
Ex Norton boss Stuart Garner denied appeal and ordered to repay pensions cash – with interest...
Ex-Norton chief Stuart Garner has been refused permission to appeal against a ruling ordering him to pay back millions of pounds in pension fund contributions.
The Pensions Ombudsman ruled in June that Garner, sole trustee of the three pension funds wholly invested in Norton Motorcycles, of which Garner was director at the time “acted dishonestly and in breach of his duty of no conflict”. The Ombudsman, Anthony Arter, ruled that Garner had to “pay back to the Schemes the amount lost on investment, less any money already recovered”. Although the exact figure is unclear, members were submitted to the pension schemes between April 2012 and December 2013, transferring funds from other pension arrangements.
The total amount transferred into the schemes was £10,931,647. The Ombudsman also directed that interest of 8% per annum from the date of the initial investment would also be payable to each investor, as this is considered to be the likely fund growth had the sums been invested in a bona fide scheme. Garner had appealed against that ruling but Mr Justice Fancourt has now dismissed that request. The repayment of those funds had been on hold, awaiting this ruling.
In his latest judgment, Justice Fancourt stated: “There could have
‘The total in the schemes was £10,931,647’
been no good reason to delay the payment of compensation unless there was compelling evidence that it would be provided by other means within the timescale specified by the ombudsman.”
The Pensions Ombudsman made the original ruling after 30 members of the pension schemes, from a total of 228 investors, claimed that they had not received their funds when requested. The investigation led to a hearing in February.
Garner was also ordered to pay £6000 in distress payments to each of the 30 members who had not had funds returned to them after requesting payments. Garner has been given permission to appeal against that ruling, totalling £180,000.
Garner bought Norton in 2008 and after a rollercoaster ride, the firm went into administration in January after Metro Bank called in administrators BDO. The company was sold in April to Indian motorcycle manufacturing giant TVS, who are currently working to start production and fulfil outstanding customer orders. The ruling could lead to Garner being made personally bankrupt if he cannot make the payments ordered by the Ombudsman. A separate investigation by the Pensions Regulator is ongoing.