William Stern (businessman) facts for kids

William George Stern (born Vilmos György Stern, 2 July 1935 – 21 March 2020) was a businessman known for owning the British Stern Group of companies. In 1973, his company faced a huge financial problem. This made him the person with the biggest debt in Britain at that time, owing £118 million.

Because of this event, many people lost their money. This led to a new law being created in Britain called the Policyholders' Protection Act. This law helps protect investors if an insurance company fails. William Stern passed away in 2020 due to problems from COVID-19.

Early Life and Escape

William Stern, whose birth name was Vilmos György Stern, was born in Budapest, Hungary, on July 2, 1935. He was the youngest of three children. His father, Chaim Stern, owned a textile factory that made clothes for the Hungarian government.

In March 1944, Nazi Germany invaded Hungary. To escape the danger, William and his family got on a special train called the Kastner train. This train carried 1,684 Jewish people to safety in Switzerland.

Business Career and Challenges

How Property Funds Grew

In the 1960s, Britain's economy was doing well. This led to the creation of new ways to invest, like property funds. These funds allowed people to invest in buildings and land. At first, only large groups like pension funds and charities could buy into these funds.

However, in 1970, Prime Minister Edward Heath changed the rules. After this, regular people could also invest in these funds through insurance companies. One of these companies was Nation Life Insurance, which was part of William Stern's Stern Group.

The Collapse of Stern Group

In 1973 and 1974, Britain faced a big stock market crash. This caused property prices to drop very quickly. People who had invested in property funds tried to get their money back, but the funds did not have enough cash. This led to many companies, including Nation Life, going out of business.

William Stern was declared bankrupt, meaning he could not pay his debts. Many private investors lost their life savings because there was no system to protect them back then. Because Nation Life failed, the government created the 1975 Policyholders' Protection Act. This law makes sure that investors' insurance is paid for by a small fee on investment premiums.

Later Business Activities

After being cleared of his first bankruptcy in 1987, William Stern started new businesses. However, another one of his companies also faced problems in the 1990s, owing £11 million.

In April 2000, he was not allowed to be a company director for twelve years. This happened because it was found that he had taken £1.5 million from the business, even though he knew the company was about to fail.

In 2013, William Stern sold some valuable family items to someone he owed money to. But after getting paid, he refused to give the items to the buyer. He claimed he wasn't allowed to sell them. Later, a court ordered him to deliver the goods. In late 2014, the items were taken from his home and given to the buyer after a civil court decision.

Personal Life

William Stern married Shoshana Stempel (Freshwater) in 1957 or 1958.

In 2000, he lived in a large house in London. He also owned another home in Jerusalem and a villa in the south of France.

Death

William Stern passed away on March 21, 2020, due to complications from COVID-19. A relative, Rabbi Pini Dunner, described him as a "titan" after his death.

See also

In Spanish: William Stern (empresario) para niños