The details are published in a new Regulatory Intervention Report from the TPR.

Company directors Andrew Kyprianou, 60, and Colin Werb, 72, pleaded guilty to two counts of prohibited employer-related investments (ERI) 

They were sentenced to 16 months’ imprisonment, suspended for two years, and given 250 hours of community work each when appearing at Leeds Crown Court in August 2022.

Mssrs Kyprianou and Werb were trustees of a DB pension scheme called the Eastman Machine Company Limited Superannuation Scheme, but were also directors of Eastman Staples Limited, the employer sponsoring the scheme.

At the time the offences took place, the scheme had 19 members and approximately £1.67m invested.

Making a loan from a pension scheme to the scheme’s employer is a criminal offence and a trustee who agrees to do this can be sentenced to up to two years’ imprisonment and an unlimited fine.

Erica Carroll, director of enforcement at TPR, said: “Our case report should serve as a clear reminder to all trustees that we will prosecute those who ignore the rules around employer-related investments.

“Where we suspect ERI breaches, we investigate fully and persistently, and take firm action against those who flout the rules, no matter the size of the scheme.”

TPR has also published its latest Compliance and Enforcement Bulletin which shows that the regulator used its powers around a third more during the six months to December 2022, compared to the previous six months.

It issued 28,027 Compliance Notices compared to 20,382 in the previous period, and 17,962 Unpaid Contribution Notices compared to 13,604.

There were 18,897 Fixed Penalty Notices compared to 15,302 in the previous period, and 7,492 Escalating Penalty Notices compared to 5,918.

Mel Charles, director of automatic enrolment, said: “The majority of employers are doing the right thing for their staff despite challenging economic circumstances.

“The volume of fines issued as a percentage of all declarations completed during July to December fell compared to the previous six months, which indicates our compliance work is effective at putting problems right before they escalate.”

In terms of the use of TPR’s frontline regulation powers, the total number of statutory powers used was 215 compared to 203 in the previous six-month period.