The final member of a gang involved in plundering £2.9million from the pension fund of a Birmingham lock-maker has been ordered to pay back more than £400,000.
Ian Selby, 58, together with four others, used the money from Hockley-based CW Cheney & Son Ltd to fund a high-roller lifestyle. While they splashed out on lap-dancers, Ferraris, helicopters, Rolex watches and exotic holidays, scores of hard-working city pensioners were left contemplating financial ruin.
Selby has been ordered by a judge at Birmingham Crown Court to repay nearly £416,000 under the Proceeds of Crime Act. He was given 28 days to pay £367,952 and 12 months to pay the remaining £48,000 or serve an additional default sentence of 18 months in jail.
A compensation order for the full amount of £415,952 was made payable to the Pension Protection Fund, which will be paid out of the confiscation order.
After the hearing, Detective Inspector Andy Bannister, of West Midlands Police, said: “This is a good result for the people who were defrauded of their hard-earned pensions. The money will be returned to the Pension Protection Fund as compensation for the victims of this crime.
“West Midlands Police have pursued these offenders to make sure that justice is served to the victims.”
Undischarged bankrupt and fraud mastermind Kevin Sykes and others bought family-run Cheney and Son in 1999. The firm was wound up in February 2001. The crooks had hoped their complicated business dealings would mask the huge fraud.
But they were arrested after investigations by the Occupational Pensions Regulatory Authority and Serious Fraud Offence. A series of trials took place before Sykes and four others, including Selby, were convicted of conspiracy to steal in 2005. The five men were jailed for a total of 26 years.
A judge was told Sykes and his colleagues bought the business for £175,000. It was then “sold” to shell companies, owned by Sykes, and £2.9million was pilfered from the pension – leaving £100,000 in the fund.
Sykes and another defendant, Simon Maya, were ordered to pay £90,000 and £1.46million respectively at a hearing at Birmingham Crown Court in June.