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Stuart Garner, Norton Motorcycle’s former owner, has admitted to three charges of breaching employer investment regulations. The emptied pension pots, which can be compared to 401k plans in the United States, totalled £11 million and involved 227 employees.
District Judge Jonathan Taaffe said Garner’s mishandling of funds “clearly crosses the custodial threshold.” The legal limit for reinvestment of such funds in the employer company is capped at five percent. Garner put all of it into Norton.
Garner’s tumultuous ownership of Norton lasted from 2008 to 2020. Mark Gardiner previously wrote an in-depth look at the Norton situation for Common Tread as investigations untangled a scheme to prop up Norton’s declining business.
“Garner and Norton also have only one degree of separation from several people who have been convicted of fraud,” he wrote. “When Garner bought the rights to Norton from an American company based in Oregon in 2008, he funded that purchase by borrowing almost £1 million from two Britons named Andrew Meeson and Peter Bradley. The funds that Meeson and Bradley loaned to Garner were later shown to have been gained through an illegal tax fraud. It took five years, but Meeson and Bradley were convicted and sentenced to eight years and six months in prison.”
Garner now faces the possibility of two years in prison after admitting to illegally investing the pension funds. Garner also continued to take deposits for Norton motorcycles even though most orders would never be filled. Meanwhile, Garner enjoyed a historic mansion and six Aston Martins. After pensioners tried to collect their money, and Garner refused to comply, the house of cards was soon exposed.
Norton’s assets were purchased by TVS Motor Company, a large manufacturer of two-wheelers based in Chennai, India. It set up a new headquarters for Norton in the West Midlands town of Solihull. TVS is trying to do right by Norton’s customers with unfilled orders. Still, getting Norton back on its feet will be no easy task.
“2021 marks the beginning of the Norton renaissance, drawing on inspiration from the past to build our legacy for the future,” Norton’s new owners say. “And it all starts with a move to new state-of-the-art facilities, alongside the eagerly anticipated launch of new models. These bikes will be the future of Norton, shaped by innovation and design. They will position Norton where it truly belongs — as one of the most iconic and influential motorcycle brands the world has ever seen.”
Garner will be sentenced at Derby Crown Court at the end of this month. Pensioners will see some justice, but they would probably be happier to see their money returned.
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