In 2012 and 2013, 228 pensioners invested in five-year pension funds (Commando 2012 Pension Scheme, the Dominator 2012 Pension Scheme, and the Donington MC Pension Scheme) which invested primarily in Norton Motorcycles.
Trustee of all funds and sole director of their provider, Manocrest Ltd, was Stuart Garner.
The pensioners claim their investment was not returned years after the lock-in period had expired and £14 million in investments were lost in the company collapse.
In February, Garner failed to appear at a public hearing held by the Pensions Ombudsman to investigate complaints about the pension schemes.
It’s taken until now for the Pensions Regulator to launch an investigation.
Last year the Pensions Ombudsman criticised Garner for a “clear” conflict of interest as trustee of schemes that invested all funds into his business.
“It appears to me that the investment of all of the scheme’s assets in Norton Motorcycle Holdings is potentially in breach of the restrictions on employer-related investments under section 40 of the Pensions Act 1995,” the ombudsman said.
Garner faces a fine and/or jail if found guilty of a conflict of interest.
The company ceased production in February, but administrators BDO UK say they have “significant interest” from potential buyers.
BDO spokesman Lee Causer says they are “taking all necessary steps to ensure that customers, staff and suppliers are supported through the administration process, as we seek the sale of the business and assets”.
“We have had a significant volume of interest and are hopeful that a sale of Norton Motorcycles (UK) Ltd can be secured,” he says.