A PROPERTY developer who withheld more than €50,000 in pension contributions from 170 employees has been fined, in the second conviction of its kind in the State. Peter Stritch, Bellisle Properties, Clonlara, Co Clare, failed to pass on payments to the Construction Workers Pension Scheme on a number of dates between 2006 and 2008, Limerick District Court heard yesterday.
Before imposing fines totalling €10,000 on the 44-year-old and his company, Judge Tom O’Donnell described the case as “very serious” and said the workers were victims of a “deliberate act” carried out during the height of the property boom.
The Pensions Board sought to bring 23 charges against Mr Stritch and Bellisle Properties Limited under The Pensions Act 1990 but accepted guilty pleas in respect of five sample charges.
Counsel for the Pensions Board, Remy Farrell, said the charges were brought under section 58(a) of the Act, which imposes an obligation on employers to pass on pension contributions deducted from employees within a 21-day period at the end of the month in which the payment is made.
Mr Farrell said the 23 charges related to amounts totalling €53,527.34 which was deducted from Mr Stritch’s employees on dates between October 2006 and December 2008 but not paid into their pension scheme.
Mr Stritch pleaded guilty to five charges which related to amounts totalling €27,861.98.
When called to give evidence Mary Hutch, head of regulations with the Pensions Board said a search warrant was obtained after attempts to seek documentation from Mr Stritch and his accountants proved unsuccessful.
Defence solicitor Pat Barriscale told the court that his client’s company was in liquidation and described Mr Stritch’s personal financial circumstances at the moment as “perilous”.
He said his client hoped to begin making some kind of repayment in the new year but “at the moment, he is not in a position to do so”.
The court heard that the accused has paid back €9,023.52 to the Pensions Board towards the outstanding amount.
During her evidence, Ms Hutch said that Mr Stritch’s actions had not only affected his employees’ pensions but also affected their sick pay benefit and also their death in service benefit. According to the Pensions Board yesterday’s conviction was the second of its kind under the Pensions Act and a number of other similar type cases are pending.