Stuart Garner, the former owner of Norton Motorcycles, has admitted to illegally investing an estimated £11m from the firm’s pension scheme back into the business.
Garner was the sole trustee of three contribution schemes (Dominator 2012, Commando 2012 and Donington MC) that invested in Norton. Between 2012 and 2013, 227 people invested in the scheme in return for preference shares.
Under the employer-related investment (ERI) rules, no more than 5% of the total value of the schemes should have been invested, however each scheme was invested in Norton in full.
Subject to certain exceptions, it is a criminal offence to invest more than 5% of the current market value of scheme resources in ERIs, so Garner’s actions were passed to the court by The Pensions Regulator (TPR).
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