{"id":64389,"date":"2015-11-19T11:31:00","date_gmt":"2015-11-19T11:31:00","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=6e1405a46c9b7d07dbca9712e0fd8e8c"},"modified":"2015-11-19T11:31:00","modified_gmt":"2015-11-19T11:31:00","slug":"press-release-director-disqualified-for-facilitating-pension-fraud","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=64389","title":{"rendered":"Press release: Director disqualified for facilitating pension fraud"},"content":{"rendered":"
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The Pension Fund contained over 500 members and endured a loss of over \u00a326m as a result of Mr Williams\u2019 actions.<\/p>\n

This disqualification follows an investigation by the Insolvency Service. <\/p>\n

Carrington Wire Limited traded from 1924 as a manufacturer of wire products in Yorkshire. In 2006, OAO Severstal, a Russian company, purchased the entire shareholding of CWL.<\/p>\n

Under the terms of the share sale agreement, OAO Severstal guaranteed the Carrington Wire Defined Benefit Pension Scheme (\u201cthe Scheme\u201d) for as long as it remained associated with CWL.<\/p>\n

CWL was loss making under Severstal\u2019s ownership and in late 2008 OAO Severstal sought an exit from CWL.<\/p>\n

Initially, the Scheme and its trustees were kept apprised of OAO Severstal\u2019s attempts to exit CWL. When OAO Severstal was unable to find a third party that would purchase CWL and provide a guarantee or similar which would offer the same protection to the Scheme, OAO Severstal continued to seek an exit from CWL and the guarantee, without the trustees\u2019 knowledge.<\/p>\n

On 16 June 2010, the entire share capital of CWL was purchased by GILLICO, a company of which Mr Williams was the sole shareholder and director. GILLICO was not associated with OAO Severstal or any of the other Severstal companies and the share sale terminated OAO Severstal\u2019s guarantee. No similar guarantee was provided by GILLICO which had been a dormant company until that point with assets of only \u00a3100, (representing its share capital). <\/p>\n

On the same date, and at a time when he knew that CWL would not be able to settle the multi-million pound Scheme deficiency, Mr Williams was appointed a director of CWL.<\/p>\n

Under the terms of the share sale agreement between OAO Severstal and GILLICO, a \u2018working capital adjustment\u2019 of \u00a3400,000 was to be provided by OAO Severstal to GILLICO as purchaser of CWL. <\/p>\n

Post completion, on 21 June 2010 GILLICO\u2019s solicitors received the sum of \u00a3400,000 and on 22 June 2010 these monies, net of the legal costs of the share sale\/purchase, were transferred to Mr Williams. These monies, totalling \u00a3382,136 were not paid into CWL and instead, according to Mr Williams, were used by him to repay personal debts and make payment to his wife, from whom he was then separated. <\/p>\n

At liquidation CWL had estimated liabilities totalling \u00a326,554,460 (being the Pension deficit) and total deficiency of \u00a344,903,162 (including \u00a317,499,202 due to shareholders).<\/p>\n

The Secretary of State for Business, Innovation & Skills accepted an Undertaking from Richard Martin Williams on 2 November 2015 for 12 years from 23 November. <\/p>\n

In summary, Mr Williams misused his position as a director to:<\/p>\n