1 October 2008
The Charity Commission today publishes two linked inquiry reports into the organisation Diabetes Help Limited and the charity Diabetes Foundation.
The Commission opened its investigation into Diabetes Help Ltd in 2000, finding that its founder, Arthur Bennett, had used that organisation to fraudulently fundraise. The inquiry led to the successful conviction of Mr Bennett in 2003 for fraudulent trading, forgery and acting as a trustee whilst disqualified.
The Commission opened its inquiry into the Diabetes Foundation in 2002 after an earlier investigation had found that large amounts of charitable money were misappropriated by Mr Bennett, who was disqualified from trusteeship as a result. In 2003 the Commission identified where he had placed some of those funds, and froze a number of bank accounts to ensure that money amounting to over £71,000 was safeguarded for charity. In 2005, Mr Bennett initiated legal action against the Commission to seek the recovery of these funds. The Commission defended these proceedings and made a legal claim that the funds were held for charitable purposes. The Commission succeeded in its claim in 2007. Despite an appeal against the judgement the case was finally resolved in the Commission’s favour in March 2008 and the funds were passed to the Diabetes Foundation to be applied for its charitable purposes.
In 2006 the Commission acted to protect a new legacy left to Diabetes Help Ltd, eventually removing its trustee Jennifer Bennett for misconduct. In doing so the Commission protected over £100,000 of charitable funds that were at serious risk.
Today’s two inquiry reports detail the processes involved in both these complex cases and contain valuable lessons for other charities, including those receiving large unexpected legacies. They highlight the steps the Commission can and will take to protect charity funds including, where it is in the public interest, legal action.
The Commission’s Chief Executive, Andrew Hind, said,
“These two reports into The Diabetes Foundation and Diabetes Help Ltd clearly demonstrate that the Commission will take robust action, including legal action, where we find deliberate evidence of wrongdoing and risk to much-needed charitable funds.”
Both reports are available from the Commission’s website at www.charitycommission.gov.uk
