A director whose actions led to an Elland company pension fund losing more than £26m has been banned for 12 years.
Richard Martin Williams, 50, was disqualified from being a director for his part in “a disgraceful conspiracy” which left more than 500 members of the Carrington Wire Ltd (CWL) defined benefit pension scheme with nothing.
It follows an investigation by the Insolvency Service.
CWL traded from 1924 – latterly at Lowfields Business Park in Elland – as a wire products manufacturer.
In 2006, Russian firm OAO Severstal bought the business and under the terms of the deal also guaranteed the CWL pension scheme for as long as it remained associated with CWL.
On June 16, 2010, CWL was bought by Gillico, a company of which Mr Williams was sole shareholder and director. The sale ended OAO Severstal’s guarantee to the pension scheme and no similar guarantee was provided by Gillico, which had been a dormant company until that point with assets of only £100.
The Insolvency Service said that on the same date – and knowing that CWL would not be able to settle the multi-million pound scheme deficiency – Mr Williams was appointed a director of CWL.
Under the terms of the sale between OAO Severstal and Gillico, a “working capital adjustment” of £400,000 was provided by OAO to Gillico as purchaser of CWL.
After the deal completed, Gillico’s solicitors received the £400,000 and the money – after legal costs were deducted – was transferred to Mr Williams.
The money, totalling £382,136, was not paid into CWL, but instead, according to Mr Williams, was used by him to repay personal debts and make payment to his wife, from whom he was then separated.
CWL went into liqudiation in December, 2012, with estimated liabilities exceeding £26.55m – being the pension deficit – and total debts of almost £50m, including almost £17.5m due to shareholders.
Business Secretary Sajid Javid accepted an undertaking from Mr Williams for the 12-year ban.
Cheryl Lambert, chief investigator at the Insolvency Service, said: “Mr Williams was the facilitator for a foreign owned business to abandon British workers and pensioners. He consciously and deliberately ignored the interests and enquiries of others, withholding information and also doing the opposite of what was advised and required via the Pension regulator.
“He ultimately personally benefited through the payment of monies by the Russian company to Gillico which he then diverted to his own pocket rather than ensuring it reached its supposed ultimate destination (Carrington Wire).
“This was a disgraceful conspiracy to abandon a pension scheme.”
