The Pensions Regulator is set to prosecute Dominic Chappell following his failure to hand over information and documents during its investigation into BHS’ sale.
Chappell faces an unlimited fine after failing to comply with three notices issued under section 72 of the Pensions Act.
The regulator’s investigation attempted to ascertain the exact circumstances of the sale of BHS from Sir Philip Green to Retail Acquisitions, of which the three-times bankrupt Chappell was head.
The regulator has since published its report into the sale, pointing the finger at Green, claiming that he sold BHS to avoid the burden of paying its insolvent pension schemes.
It launched legal proceedings against Green earlier this year, after rejecting six offers from him, meant to plug the pension deficit.
Only after proceedings were launched did Green make a voluntary payment of £343m towards the deficit.
BHS collapsed a year after Green’s sale of BHS to Chappell. Its two pension schemes were rendered insolvent, 164 stores were shuttered and 11,000 staff were made redundant.
The government inquiry into the sale and subsequent mismanagement revealed one of the biggest corporate scandals in recent history.
Chappell, who was arrested last year as part of an HMRC investigation into unpaid taxes on profits made from BHS, is also under pressure from several other bodies. BHS’ collapse is being investigated by the Insolvency Service, the Financial Reporting Council and the Serious Fraud Office.
His company Retail Acquisitions has been put into liquidation despite Chappell’s attempts to keep it afloat.
He has been summonsed to appear at Brighton magistrates’ court on September 20.