A Guernsey-based trustee has been found liable for “gross negligence” in a $25 million claim brought by a group of 25 disabled former airline pilots.
The pilots claimed the firm mismanaged their money, with the business “strongly denying the allegations”.
When the case started last year, the pilots claimed the company had “gone to sea with a hole in their boat”, risking their money.
The trial concluded in October last year, following the cross examination of Sovereign’s Group Risk and Compliance Director Stephen Hare.
The court’s decision was based on the findings of three jurats who determined that the trustee mismanaged the disability fund, leading to its eventual collapse and the pilots being denied benefits intended for medical treatment and family support. The full judgment of the court is yet to be published.
One of the plaintiffs, David Gaughan, said it was a “huge victory for us today”.
He said: “Sovereign Trust (Guernsey) Limited has not only been found liable by unanimous verdict of gross negligence – described as a “jaw dropping level” of neglect, but also of their wilful deliberate misconduct towards their own very vulnerable clients – the very people they were meant to be protecting.
“It has taken us five years for us to see justice and the toll on us, and on our families, has been significant.”
As well as gross negligence, the court also found Sovereign liable for wilful and deliberate misconduct toward its clients.
Sovereign Trust (Guernsey) Limited, a subsidiary of the Gibraltar-based Sovereign Group, operates the States-approved ‘Your Island Pension’ scheme.
It says on its website that it manages more than 20,000 structures for clients, including private investors and high-net-worth individuals, and claims to have assets under administration exceeding £20 billion.