[UPDATE, July 25, 2023: In the second part of the Guardian's deep dive into the Norton pensions scandal, investigative journalist Simon Goodley was able to take a look at Norton's books from 2012 and 2013. Those are the key years as far as the pensions scandal is concerned, because that's when the money flowed from pensioners into what they believed were legitimate pensions funds, but which were not.
What he saw is that the pensions money wasn't used to purchase equipment to strengthen the business or invest in its future and/or longevity in any way. Instead, it was used for day-to-day expenses such as salaries and overhead.
At one point, there was also a high amount signed off on as a loan to Stuart Garner, some Manchester United tickets, and other similar expenses unrelated to the business. Investigation into past Garner businesses dug up allegations by former business partners that he'd forged their signatures on funding documents in previous instances, demonstrating a potential pattern.
The books also revealed the extent of actual motorcycle sales during those years. Goodley reported that Norton sold around 40 bikes in 2012, and maybe 45 (give or take) in 2013. With no money coming into the business from motorcycle sales, the pensions funds were relied upon as the only source of funding.
The second episode of the podcast gets deeper into what regulatory officials did and didn't do regarding Norton. As of July 25, 2023, Stuart Garner's suspended prison sentence and three-year ban from serving as a director of any company are the only legal repercussions that he's faced. Those harmed by this scheme are understandably disappointed and want to see him face consequences more commensurate to his actions.
As of July 2023, Goodley says that the UK's Fraud Compensation Fund may be able to help some of the defrauded pensioners. It will only help to restore the funds invested, not any interest they would have hoped to accrue in the past decade-plus.
Additionally, the Fraud Compensation Fund only becomes an available option once every other avenue for redress has been exhausted, which will likely take additional time. Among other things, there must be proof that Garner cannot repay the money he owes to those affected. It also doesn't help individuals who have died in the years since the fraud took place, including Robert Dewar.]
Original piece follows.
In April 2020, Indian motorcycle manufacturing giant TVS Motors officially purchased historic British brand Norton Motorcycles, marking the start of a new era for the troubled company. While the name came with a long and glorious history, particularly for fans of British motorcycles and manufacturing, it also came with some hefty (and recently acquired) baggage.
For those unfamiliar, in early 2020, Norton Motorcycles found itself in administration after a particularly ugly scandal involving allegations of pensions fraud against its previous owner, Stuart Garner. Administration proceedings are similar to what readers in the US might know as bankruptcy proceedings, where an administrator (or firm) is legally assigned to handle the affairs of the business in question. Things like liquidation of remaining assets, prioritization of existing creditors and making them whole, and related tasks are handled by the administrator(s) in such a case.
At the time, British news organizations the Guardian and ITV teamed up to do a hefty piece of investigative journalism, digging into what happened and what went wrong at Norton during the Garner era. If you’re the type of person who’s ever thought to yourself that this story, with all its numerous twists and turns, would make a phenomenal podcast—as of July 2023, you’re in luck.
Deep-dive news podcast Today in Focus, which is an official audio series of the Guardian, just published the first of a two-part series tying up the loose ends of what happened during the Garner years. It’s titled the Great British Motorcycle Scam, and the first part went live on the Today in Focus podcast feed on Monday, July 24, 2023.
The first chapter focuses on how Garner, who had neither a motorcycle nor a manufacturing background, came to purchase Norton Motorcycles in the first place. It also delves into the ins and outs of the pensions scam that took hundreds of thousands of pounds from working class British pensioners.
The Guardian states that it reached out to Garner for comment before moving ahead with this story but did not receive a response. For his part, in the past, he has publicly claimed that he did not realize it was a scam at the time. As the podcast discusses, though, many people close to the situation don’t believe that to be true.
The first part is about 40 minutes long, and the second part of this story should be available to listen to on July 25, 2023. It’s available to listen to via your favorite podcast streaming service, so if you’re interested in hearing how the story ends, be sure to check it out.
Since we’ve only heard the first part of this audio wrap-up of events, we can’t tell you what happens—but we’ll be sure to update this post with more information once the second half of the story drops.
