The Pensions Regulator (TPR) has brought a prosecution against the three over loans and investments worth a total of £700,000.

Stephen Smith, 63, of Broughton-in-Furness, Cumbria and David Boardman, 68, of Preston - trustees of the Worthington Employee Pension Top Up Scheme - are accused of making five prohibited loans from the scheme and one prohibited investment. 

Derek Thomas, 85, of West Oxfordshire, a professional adviser to the scheme, is accused of “assisting or encouraging” four prohibited loans.

The allegations relate to three loans by the scheme to Stonewell Property Company Limited, which was the parent company of the sponsoring employer Marcus Worthington and Company Ltd. 

The scheme also made an investment in a retail park where the land concerned had been let on a long lease to companies connected and associated with Marcus Worthington and Company Ltd.

The three men are set to appear before Preston Magistrates’ Court on 19 October. 

Certain employer-related investments made by an occupational pension scheme are prohibited under Section 40 of the Pensions Act 1995 and the Occupational Pension Schemes (Investment) Regulations 2005. Loans to a person connected or associated with the scheme employer are prohibited.