Scott Henderson was fined $60,000 and ordered to pay $230,000 back to employee pension funds in a case that has dragged on for over a year and a half.

Mr Henderson was convicted on 79 counts of failing to pay pension contributions for two businesses, Office Pavilion and Cayman Flooring.

The Henderson case is the first employer to have been charged since the Pensions Law came into effect and, after one and half years in court, it appears to be finally coming to an end.

However, a stay has been granted by the judge on $90,000 in pensions contributions and fines of $27,000, with an appeal expected to be filed by the Mr Henderson to the Grand Court.

The Superintendent of Pensions, Cyril Theriault stated that, even though the individual fines could have been much higher, the total amount of the fine is serious enough that other employers who are not in compliance of the law should take note.

“We are pleased at the total amount of the find and feel that it was justified considering the long term and habitual nature of the offence,” said Mr Theriault.

“If it were not for the fact there were so many charges, I believe that each count would have been closer to the maximum of $5,000.

But we are especially pleased that the employee pensions funds will get put back into their accounts.”

Because Mr Henderson did not pay pensions for three years for Office Pavilion and two and half years for Cayman Flooring, this conviction has sent a message to the business community that the perception that employers can get away with not paying pensions is now over.

Mr Theriault added that it was expected that Magistrate Ramsey-Hale will issue the full written judgement in a month and that document will provide the direction in which the Pensions Office will pursue other cases.  

In addition to paying back pensions and fines, Mr Henderson was ordered to pay $20,000 in court costs.

Mr Henderson was further fined $3,000 on three counts of failing to provide information on pensions funds to the Pensions Office.

Mr Theriault credits Pensions Inspector, Pierre Lautischer, the investigating officer in the Scott Henderson case, as a major factor in gathering the evidence that brought the case to trial.

Sources say that Mr Henderson was fortunate to only be assessed $60,000 in fines because the maximum for each offence is $5,000.

If the judge had imposed the maximum fine on each of the 79 counts, it would have added up to nearly $400,000.

During the last year and half, Mr Henderson’s properties were put up for sale and the proceeds were held in a trust fund by the Pensions Office in case of a significant judgement in the Pensions Office’s favour.

The account has $300,000, which is sufficient to pay the pensions funds and fines that are due immediately.

However, because some of the money held in the account was already paid out to cover legal fees, there may not be enough to cover the amount that is being appealed if it is upheld by the Grand Court.

Mr Theriault stated that the money held in trust would be used to pay the employees’ pension funds immediately.

It is not yet known if the Solicitor General will bring more charges against Mr Henderson for continuing not to pay employee pensions for the past year and half that he has been in court.

It is suspected that some employees continued to work for his companies, but no pensions had been paid.

A key witness at the trial, John Boutour, testified that he continued to work for both Office Pavilion and Cayman Flooring even when the companies had supposedly ceased operating.

It was reported that Mr Boutour had to leave the Island, because his work permit had not been renewed and he was found to be working without a work permit.