A significant number of orthodox Jewish charities have been named in a major UK Charity Commission enquiry into possible malpractice over cheques which have been cashed with a value of £22 million over a 15-month-long time frame.
Earlier this year, the Charity Commission for England and Wales announced the statutory class inquiry into a group of charities where there is alleged evidence that the cheques for cash practise was taking place.
The first 10 charities included: Inspirations, Beis Aharon Charitable Trust Limited, Mifal Hachesed Vehatzedokoh, Friend of Beis Soroh Schneirer, One Heart – Lev Echod, Yad Vochessed Association Limited, Friends of Beis Chinuch Lebonos Trust, Chasdei Dov Trust, Friends of Mercaz Hatorah Belz Macnivka and The Rehabilitation Trust.
However the Commission has now expanded its investigation to include the addition of 10 other charities following an “unannounced visit by HMRC” to a “company in Hackney.”
105 charities were found to have cashed cheques with it to a value of £22 million between December 2021 and March 2023.
The Commission has now extended this inquiry to include the following 10 charities: the Ezer Viznitz Foundation, Satmar Nursery Trust, Lehachyos, Dover Sholem Community Trust, Friends of Yeshiva Daas Sholem Shotz, Vyoel Moshe Charitable Trust, The Z.S.V. Trust, United Talmudical Associates Ltd, Forty Limited and the Bnois Jerusalem Schools.
A statutory inquiry is a legal power enabling the Commission to formally investigate matters of regulatory concern within a charity, or class of charities and to use protective powers for the benefit of the charity and its beneficiaries, assets, or reputation.
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An inquiry will investigate and establish the facts of the case so that the Commission can determine the extent of any misconduct and/or mismanagement; the extent of the risk to the charity, its work, property, beneficiaries, employees or volunteers; and decide what action is needed to resolve the concerns.
The Commission has confirmed it has issued an immediate order to temporarily stop any of the charities under inquiry from issuing cheques without its prior consent.
Its inquiry will aim to determine how the charities have transferred funds, how trustees had oversight of what happened to funds exchanged for the cheques and if this cash has been used properly to support what the charities were set up to do.
The Commission will also seek to establish how trustees determined that these financial transactions were in their charity’s best interests.
Last year the Commission said it had prioritised charities based on the volume and value of cheques involved.
It also confirmed the number of charities under investigation was expected to increase as the inquiry progresses.
