Pension trustees plead guilty to illegal loans

A pair of pension trustees have pleaded guilty to making illegal loans from a company pension scheme to the scheme’s employer. The illegal loans amounted to £236,000. Andrew Kyprinanou, 60, from Middlesex and Colin Werb, 71, from Derby both admitted to making prohibited employer-related investments at Leeds Crown Court yesterday. They have been released on bail to return for sentencing on 7 October. The pair had initially pleaded not guilty to all charges in the prosecution brought by The Pensions Regulator. Between 2017 and 2018 the pair unlawfully used the pension funds from Eastman Machine Company Limited Superannuation Scheme in the form of two loans to Eastman Staples, a Huddersfield supplier to the textile industry. The first loan in 2017 was for £96,000, and a second for £140,000 was paid in March 2018. Employer-related investments are prohibited by section 40 of the Pensions Act 1995 and Occupational Pension Schemes (Investment) Regulations 2005 and can be punishable by an unlimited fine and/or imprisonment. Both Mr Kyprinanou and Mr Werb were replaced by TPR as trustees by independent professional trustees in December 2020. Both had also been charged with providing false or misleading information to The Pension Regulator (TPR) contrary to section 80 of the Pensions Act 2004. TPR alleged that the pair, employees of Eastman Staples Limited, fabricated minutes of trustee meetings to disguise the loans as investments. These charges will lie on file with the judge agreeing that there is enough evidence for a case to be made but that it is not in public interest to proceed due to the defendant acknowledging other charges. Charges that lie on file may be reinstated at a later date with the permission of the trial judge or the Court of Appeal.

Pension trustees plead guilty to illegal loans

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