Two pension trustees have pleaded not guilty over allegations they made prohibited loans from a company pension scheme to its employer.
According to the Pensions Regulator, company directors Andrew Kyprianou and Colin Werb appeared at Leeds Crown Court last week (May 28) and pleaded not guilty to 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.
Both men also pleaded not guilty to two charges of providing false or misleading information to TPR for documents provided to the investigation, which the regulator has alleged were fabricated.
Knowingly or recklessly providing false or misleading information to TPR is an offence and can lead to a fine or up to two years' imprisonment.
A trial date is expected to be held in mid-June.
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