GP Noble - The End Of The Affair?

A further wave of information has been published on the GP Noble affair, including details of criminal proceedings and a statutory report from the Pensions Regulator.

The GP Noble case is the most high-profile episode of fraud in the British pensions industry since Robert Maxwell, and we now have a substantially complete picture of what has unfolded over the last five years.

What was GP Noble?

GP Noble Trustees Limited (GPNT) was an independent professional trust company which acted as the trustee of a considerable number of occupational pension schemes. It has been in liquidation since 2009.

GPNT's directors included two individuals called Graham Pitcher and Gary Cordell. Both of these men played major roles in the saga. Mr Pitcher is currently in prison.

GPNT was owned by a company called Mentor Pension Trustees Limited, which was dissolved in 2010. This entity was owned in turn by a company called The Money Portal Limited, which has been in receivership since June 2009. The Money Portal Limited was co-founded by Anthony Morris, another major player in this saga. Mr Morris was disqualified from acting as a company director in 2005.

A final, minor participant in the events at issue was a company called BDC Trustees Limited, which was owned by Mr Pitcher. This entity, like GPNT, served as a trustee of the schemes involved in the affair, but its role was minor and it will not be treated separately in what follows. It was dissolved in August 2010.

Which pension schemes were involved in the affair?

Nine defined benefit pension schemes, which together had around 2,180 members. They were under the control of GPNT.

How did the scandal begin?

By 2007, the schemes' employers were insolvent, and the schemes were set to be rescued by one of the statutory occupational pensions lifeboats, the Pension Protection Fund (PPF) and the Financial Assistance Scheme (FAS). GPNT was appointed to the schemes to manage them while they were assessed for PPF/FAS entry.

On 14 August 2007, GPNT transferred £30 million in assets out of the schemes, followed by a further £22 million on 18-21 April 2008. This totalled £52 million out of total assets held by the schemes of £57.6 million. The disinvested assets had previously been held in very low risk investments (mainly gilts and cash).

What happened to the assets?

The first wave of funds was paid to Fareston Limited, a company which had been incorporated on 22 June 2007 in the British Virgin Islands. Another entity...