Ex-Norton Motorcycles boss Stuart Garner avoids jail after investing £11 million of pension savings

Stuart Garner has received a suspended prison sentence after pleading guilty to using other people's pension money to invest in his own business, Norton motorcycles.

The 53-year-old invested £11 million into the business, which he had moved to Castle Donnington, between 2012 and 2013.

He was the sole trustee of the company, and used that position to illegally invest the funds.

Garner was, at a time, a multi-millionaire after buying the rights to the Norton motorcycle brand in 2008. The business was endorsed by MPs and the government invested money in it too.

When the business began to struggle, he set up a pension fund, and invested all the money into the motorcycle firm - when he should have only invested a maximum of 5%.

He pleaded guilty to three counts of breaching employer-related investment rules.

Passing sentence, Judge Nirmal Shant QC said "You controlled the Norton Motorcycle business and in 2012 the business needed funds and you raised around £11m by establishing three funds which were under your control.

"You were obligated to act in a prudent manner according to law. You are an experienced businessman and you must have known there was a conflict of interest.

"It is quite plain the reason was that the banks were not prepared to lend you the money.

"The fact that banks were not prepared to lend you the money should have set alarm bells ringing to an experienced businessman."

He adds: "By 2020 £1.5m was paid out to members (but) there's a shortfall of £10m. This is not just financial harm

"You did not know you were breaking the law, however it is plain, in setting up a pension fund worth £11m, that you should have known your basic responsibilities as a trustee."

"I have read statement after statement from ordinary people who invested," the judge continued.

"Many speak of broken relationships and ill health. The harm this caused cannot be understated."

Peter Caldwell, mitigating, said his client's actions had led to "a tragic fall from grace".

He said: "He has experienced personal anguish and rather serious mental health crises both last year and at the beginning of this year."

As well as the suspended jail term, Judge Shant disqualified Garner from being a company director for three years. He has also been ordered to pay £20,716.69 costs, despite him being bankrupt.