One of Preston’s pension companies has been wound up after failing to maintain millions of pounds worth of members funds.
Ecroignard Trustees Limited managed two pension schemes which had 229 members with a total £14 million worth of investments.
Following several complaints, the Insolvency Service began its investigation into the company’s activities and found that on a number of occasions it had failed to comply with statutory requirements. For example, pension funds were used to invest in vehicles that were illiquid, high risk and not necessarily suitable for the members.
As well as these instances of misconduct, the company failed to comply with the Companies Act 2006 as it did not maintain and preserve adequate books and records. This made it harder for the Insolvency Service when undertaking their investigation.
Roger Bessent resigned as director of the company in 2017 as he was disqualified from acting in the management of companies. Despite this, he appeared to continue having management roles within the company. He has now been sentenced with 39 months in prison.
Scott Crighton, Chief Investigator for the Insolvency Service said:
“When people invest their pension funds as a way of planning for their futures, they don’t expect their saving pots to be put at risk. Ecroignard’s management of the pension schemes, however, raised considerable red flags and questions remain which will need to be looked into by the Official Receiver as liquidator of the company.
If you are considering moving your pension into an investment scheme, we strongly recommend you do your research beforehand and if you believe you have been affected by Ecroignard to contact the Official Receiver as soon possible.”
Members of the public who have been affected by the actions of Ecroignard can contact the Official Receiver at firstname.lastname@example.org with details of their case.
For more information on bankruptcy, liquidation, administration and all the other insolvency procedures, or to take advantage of our free consultation, please telephone Stella Flemmings on 01377 257788, 01724 230060 or 01904 520116 and she will make you an appointment with one of our insolvency professionals at our Driffield, Scunthorpe or York offices.