Two pension trustees face Crown Court trial

Two former pension trustees are to face trial at Crown Court accused of arranging £700,000 in illegal loans and investments. In a prosecution brought by The Pensions Regulator, the men are accused of making five prohibited loans from a pension scheme and one prohibited investment. The two accused are Stephen Smith, 63, of Broughton-in-Furness, Cumbria and David Boardman, 68, of Preston, Lancashire who were trustees of the Worthington Employee Pension Top Up Scheme. They appeared at Preston Magistrates’ Court this week. Mr Smith pleaded guilty to making five prohibited loans but pleaded not guilty to a sixth charge of making a prohibited investment while Mr Boardman did not enter a plea. Both men were released on bail and ordered to appear at Preston Crown Court for a plea and trial preparation hearing on 22 November. Derek Thomas, 85, of West Oxfordshire, who worked as a professional adviser to the scheme, has also been charged with four counts of assisting or encouraging prohibited loans. He did not appear in court or enter a plea and was ordered to attend Preston Magistrates’ Court on 26 October. The allegations concern loans and an investment of £700,000. These included three loans by the scheme to Stonewell Property Company Limited, which was the parent company of the sponsoring employer, Marcus Worthington and Company Ltd. The scheme also made an investment in a retail park where the land had been let on a long lease to companies connected and associated with Marcus Worthington and Company Ltd. The prosecutions are being brought under Section 40 of the Pensions Act 1995 and the Occupational Pension Schemes (Investment) Regulations 2005. Loans to a person connected or associated with the scheme employer are prohibited. Investments of more than 5% of the value of scheme resources in land occupied or used by, or subject to a lease in favour of, a person connected or associated with the scheme employer are also prohibited. Breach of Section 40 is a criminal offence and can potentially lead to an unlimited fine and/or imprisonment.

Two pension trustees face Crown Court trial

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