The Pensions Regulator is taking two pension trustees to court over allegations they made prohibited loans from a company pension scheme to its employer.
According to the regulator, company directors Andrew Kyprianou and Colin Werb appeared before Kirklees Magistrates' Court on April 30 charged with two counts of making prohibited employer-related investments.
The regulator alleged the pair used money from the Eastman Machine Company Limited Superannuation Scheme to make two loans, one for £100,000 in 2017 and a second for £140,000 in March 2018, to the scheme’s Huddersfield-based employer, Eastman Staples.
Employer-related loans are prohibited by law, regardless of the amount involved. This is a criminal offence and can potentially lead to an unlimited fine and/or imprisonment.
Each trustee also faces two charges of providing false or misleading information to TPR for documents provided to the investigation which, the regulator alleged, were fabricated.
Knowingly or recklessly providing false or misleading information to TPR is an offence which can lead to a fine or up to two years' imprisonment.
The pair pleaded not guilty to all charges and were bailed to appear before Leeds Crown Court for a plea and trial preparation hearing on May 28, TPR added.
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