Today is March 18, 2024, which implies that it’s just over four years since Norton Motorcycles, under its former administration by Stuart Garner, entered administration. That additionally means it is barely over 4 years since we first got a glimpse of how deep and ugly the Norton pensions scam really was.
For these unfamiliar, this is a fast overview. In 2012 and 2013, over 200 common working folks in England had been persuaded to switch a complete of round £11.5m into Norton pensions funds that had been, virtually a decade later, discovered to be a part of what’s legally often known as a “pensions liberation fraud” scheme in UK parlance.
The cash taken from these pensioners was put into Norton pension schemes, which had been then used to fund the Norton Motorcycles enterprise beneath the Garner administration. (Please word that the current Norton Motorcycles in 2024 is under completely different ownership by TVS Motors, which had nothing to do with the pensions scandal.)
After a protracted and drawn-out authorized course of, Stuart Garner was ordered by the UK Pensions Ombudsman to repay approximately £14m to the pensioners this scheme had defrauded in December 2020. For the report, that equated to about US $17,402,910 at the moment.
Garner then (unsurprisingly) declared chapter, leaving many to doubt whether or not the pensioners would ever see any type of compensation for his or her loss from this fraud. By that point, since time continued to move, not all of the pensioners had been nonetheless residing, however their households may even have used the cash.
Now that you simply’re caught up with the story, we’re glad to inform you that there is some excellent news eventually for the defrauded pensioners and their households. The UK Pension Protection Fund’s Fraud Compensation Fund has lastly discovered that victims of the Norton pensions scheme are eligible for compensation.
This comes after almost 4 years of deliberation on their half relating to eligibility, as evidenced by a written doc introduced to the UK Parliament outlining why, in 2020, the matter was into account however nonetheless had not but been resolved in favor of the pensioners. We’ve linked it in our Sources if you wish to learn it in full.
Back in 2020, the principle sticking level in keeping with the Fraud Compensation Fund was that “In the case of the Norton Motorcycles Pension Schemes, the conditions for an eligible claim have not been met as there has not been a qualifying insolvency event.”
However, that call was not onerous and quick, and was one thing that developed because the details within the case additionally developed. Once there was “an insolvency event,” the Fraud Compensation Fund was free to maneuver ahead in its consideration. And prone to everybody’s aid, it did. Maybe it wasn’t as fast because the pensioners and their households would have favored, however it additionally did not come to an entire halt.
The UK Fraud Compensation Fund Has Reportedly Paid £9.4m To The 3 Pensions Schemes Affected
That’s an enormous hurdle that is now been met, however now the trustee appointed by the regulator, Dalriada, is crunching the numbers on how a lot every of the 200-plus pensioners are owed. They estimate that this activity may take till November 2024, in keeping with the Guardian.
Some of the affected pensioners aren’t thrilled about having to attend even longer, which is actually honest. However, it does appear to no less than be considerably excellent news that they are going to be capable of recuperate most of their cash.