Dominic Chappell, former owner of BHS, has been ordered to pay more than £87,000 for failing to hand over information to The Pensions Regulator (TPR).
On Friday (23 February), at Barkingside Magistrates’ Court in London, district judge Gary Lucie, ordered Chappell to pay a £50,000 fine, £37,000 in costs and a £170 victim surcharge.
Chappell failed to provide information that the watchdog had required him to supply as part of its investigation into the sale and then collapse of BHS, using powers under Section 72.
He also failed to provide TPR with information about a possible unauthorised disclosure of restricted material.
Chappell had pleaded not guilty to three charges of neglecting or refusing to provide information and documents without a reasonable excuse, the TPR said, but was convicted of all the charges after a trial in January.
Mr Lucie said: “The court must send a message to those in senior positions that refusal to answer questions under Section 72 will not be tolerated.
“The law is there for a purpose and it must be enforced. There is a complete lack of remorse on Mr Chappell’s part.”
The thrice bankrupt Mr Chappell bought BHS from billionaire Sir Philip Green for just £1 in March 2015.
But just days later, the regulator demanded hundreds of documents in relation to the £571m pension blackhole at the high-street chain.
BHS went into administration in April 2016, putting workers' retirement nest eggs at risk and The Pensions Regulator has been investigating the case since.
In the end, a £363m settlement with Sir Philip was reached to fund a new independent pension scheme for 19,000 former BHS workers.
The case is the fifth criminal conviction secured by TPR against individuals or organisations for failing to comply with Section 72 notices.
According to Nicola Parish, TPR’s executive director of frontline regulation, Chappell’s decision not to comply with the regulator’s request “has now left him with a criminal record and a bill for more than £87,000, both of which he could have avoided if he had simply done what was required of him”.
She said: “Information notices are a vital investigative tool for us. Ignoring them is a crime that can lead to prosecution.”
The regulator’s separate anti-avoidance action against Chappell in respect of the BHS pension schemes is continuing.
The watchdog issued a determination notice against Chappell in January, demanding he pays around £10m into the company's pension scheme.
maria.espadinha@ft.com
