The Charity Commission is conducting a class statutory inquiry into a group of charities alleged to be involved in money laundering, which had common trustees.
The charities are: Chabad UK, Havenpoint Worldwide Limited, Mamosh Worldwide Limited, Or Simcha, Ozer Dalim Limited, Pikuach Nefesh Ltd, Worldwide Hatzala Ltd, and Havenpoint Limited.
The Charity Commission has been investigating the charities since June 2014 when it was notified of a Metropolitan Police investigation into the charities over concerns they were being used to launder £10 million. Assessing the information, the Commission found a pattern of regulatory concerns across the charities, including signs of fraud and mismanagement.
The Commission opened a class statutory inquiry on 13 June 2014 but to avoid prejudicing criminal proceedings, under which the inquiry has been working with the Metropolitan Police, it can only now announce the investigation. On 26 June 2019 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 2019.
Amy Spiller, Head of 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.”
The Commission will now progress the final stages of its inquiry and report on its findings and conclusions in due course.