The Commission acknowledged that the other trustees subsequently acted in a responsible way to address the commission’s regulatory concerns after its intervention. The other trustees had also failed to adequately and fully discharge their duties as charity trustees. The regulator found that the actions of the founding trustee amounted to misconduct and mismanagement in the administration of the charity. The Commission’s inquiry in a report published today concluded that funds had been misappropriated for personal benefit and this happened after the other trustees moved away and the founding trustee effectively took over the sole control of the charity and its affairs.
The Commission referred its concerns and evidence to the Police. The Commission was then able to ensure that the other trustees took steps to recover a substantial amount of the misappropriated funds from the founder. This action protected £378,000 of charitable funds. The Commission acted quickly using its powers under the Charities Act 2011 to freeze six bank accounts where charitable funds had been moved to. The inquiry also established that part of the donations were used to invest in properties not owned by the charity, an improper use of charitable funds.
After scrutinising the charity’s banking records the Commission found that two legacies (of £382,460 and £44,957) had been placed in several bank accounts held in the name of the founding trustee and another person who was not a trustee. The Commission found that there were three trustees but only one of the trustees (the founder) was in control of the charity’s finances. On 23 April 2013 the Commission opened an investigation into the charity after receiving a complaint from executor of a will that a legacy of £382,460 had been left to the charity in 2005 and had not been recorded in the charity’s accounts. The Charity Commission today announced the results of its inquiry into Cavalier King Charles Spaniel Rescue Welfare (registered charity number 1104112).
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