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Garner’s court case has officially finalized payment of almost $12 million to the victims of the Norton pension fraud case.
Stuart Garner on one of his own machines. Media provided by Leicester Mercury.A little bit about the Norton pensions fraud court case
Back in February of 2022, we covered a pension fraud scheme connected to Stuart Garner, a previous CEO of Norton Motorcycles. The case had gone to the High Court, with Garner being directed to repay “some £10 m plus interest,” not counting “distress and inconvenience payments” (the Pensions Regulator).
Garner appealed and a new hearing was scheduled – but before it could happen, the lockdowns of 2020 had hit.
By December 2020, Garner had filed for bankruptcy, leaving the 200-odd British citizens who originally fell prey to the Norton scheme unsure if they would receive their funds back.
A Norton Dominator. Media provided by Leicester Mercury.What was the result of the Norton pensions fraud court case?
Upon Garner’s sentencing in 2020, the Ex-Chief Executive pled guilty to “illegally investing nearly £11 million from pension schemes under his control into his own business” (the Pensions Regulator).
Thanks to some excellent sourcing from Janaki Jitchotvisut (RideApart), we now know that the UK Pension Protection Fund’s Fraud Compensation Fund found the pension scheme victims eligible for compensation.
Apparently, the hold-up was caused by a “qualifying insolvency event,” in which Norton had to confirm that it was unable to pay its debts before the UK’s fund could move forward.
With that event now completed, the pension scheme victims are to be awarded $11.87 million, though we are told some of the victims are no longer with us.
Donnington park, purchased by Stuart Garner back in 2013. Media provided by Wikipedia.Further words on the pensions liberation fraud case
Thanks to this case, a Pensions Dishonesty Unit was founded to get to the bottom of future “breaches of trust, misappropriation of pension funds and dishonest or fraudulent behavior by pension scheme trustees.”
Here’s a memorable quote from a Pensions Ombudsman spokesperson on the pensions liberation fraud case:
| “The principal aim of the Pensions Dishonesty Unit is to hold the wrongdoers responsible for the unlawful gains they have made and ensure they repay these monies to the scheme members – many of whom have lost substantial sums and are now struggling to get by without their lifetime savings.
While some of the schemes may also be eligible for the Fraud Compensation Fund, with whom we are engaging regularly, any money obtained for the members through our process will come directly from the hands of those responsible, rather than relying on public funds for repayment.” – Anthony Arter, Pensions Ombudsman, UK (Pensions Ombudsman). March 31, 2022. |
What do you think of the Norton pension fraud case results?
