Former trustees to face Crown Court over illegal pension loans

Two former pension scheme trustees are set to appear at Preston Crown Court later this month over allegations that they made illegal loans and investments, in a prosecution brought by The Pensions Regulator (TPR).

Stephen Smith and David Boardman, who were trustees of the Worthington Employee Pension Top Up Scheme, appeared at Preston Magistrates’ Court yesterday (19 October), having been accused of making five prohibited loans from the scheme and one prohibited investment.

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, a professional adviser to the scheme, has also been charged with four counts of assisting or encouraging prohibited loans. Thomas has not yet appeared in court or entered a plea, and is scheduled to attend Preston Magistrates’ Court on 26 October.

The allegations relate to loans and an investment totalling £700,000, including three loans by the scheme to Stonewell Property Company Limited, which was the parent company of the sponsoring employer, Marcus Worthington and Company Ltd.

In addition to this, the scheme 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 case is the latest in a number of prosecutions brought by TPR, including a similar case in August when two pension trustees pleaded guilty to making illegal loans worth £236,000 from a company pension scheme to the scheme’s employer.

This is in addition to the successful prosecution of two pension fraudsters earlier in the year, who were jailed for a combined total of more than 10 years for their roles in a scam that saw over 200 savers tricked into transferring £13.7m into fraudulent schemes.

    Share Story:

Recent Stories


Making pension engagement enjoyable through technology
Laura Blows speaks to Nick Hall, business development director and Chartered Financial Planner at UK-based Wealth Wizards about the opportunities that technology provides for increasing people’s engagement with pensions and increasing their retirement wealth. Please click here for an edited write-up of the video

ESG & DC – creating the right tools
In the latest of our series of Pensions Age video interviews Francesca Fabrizi, Editor in Chief of Pensions Age is joined by Manuela Sperandeo, Head of Sustainable Indexing EMEA, BlackRock and Mark Guirey, Executive Director, Asset Owner and Consultant Coverage - MSCI to discuss some key trends of ESG investing among UK pension funds today. Please click here for an edited write-up of the video

Savings and finance at retirement
Laura Blows is joined by Claire Felgate, Head of Global Consultant Relations, UK, at BlackRock, to discuss savings and finance at retirement. Please click here for an edited write-up of the video

Global sustainable credit
Laura Blows speaks to Royal London Asset Management senior fund manager, Rachid Semaoune, about global sustainable credit
Global equities and transition investing
Pensions Age editor, Laura Blows speaks to Royal London Asset Management equity investment director, Jonathan Price, about transitioning to sustainable investments within global equities

Advertisement Advertisement Advertisement