Charity Commission investigating eight linked charities over fraud allegations

10 Jul 2019 News

The Charity Commission has announced it is investigating a group of eight charities alleged to be involved in money laundering.

It opened a class statutory inquiry in June 2014 when it was notified of a Metropolitan Police investigation into the charities over concerns that they were being used to launder £10m.

The Commission found a pattern of regulatory concerns across the charities including signs of fraud and mismanagement.

However, it has been unable to announce the investigation until now so as to avoid prejudicing criminal proceedings.

The eight charities are: Chabad UK, Havenpoint Worldwide Limited, Mamosh Worldwide Limited, Or Simcha, Ozer Dalim limited, Pikuach Nefesh Ltd, Worldwide Hatzala Ltd and Havenpoint Limited.

Last month, the administrator of Chabad UK was convicted of laundering money through the charities, as well as for supplying false information to the Commission.

He was sentenced at Southwark Crown Court on 4 July.

The Commission will now progress the final stages of its inquiry and report on its findings and conclusions in due course.

Amy Spiller, head of the investigations team at the Charity Commission, said: “This case has involved a dishonest abuse of charity and we welcome the sentence.

“Charities exist to do good and strengthen society, so abuse of position of this kind has no place in charity.

“It is right that the individual has been held to account for his actions through the conviction.”

Chabad UK is an entirely different organisation to Chabad Lubavitch UK.

Civil Society Media's Charity Finance Week takes place in October and this year the theme is Accounts and Accountability. Find out more about the events taking place. 

 

 

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