DISGRACED CHARITY FRAUDSTER FOUND GUILTY

12 Jun 2003 06:45 PM

Watchdog to protect £50,000 of funds for charity

Croydon based ex-banker Arthur Bennett was today convicted of charges of fraudulent trading, acting as a trustee of a charity while disqualified and two charges of providing false information. These charges were brought against Bennett after the Charity Commission investigated his fundraising company, Diabetes Help, which he claimed was not a charity. The Commission discovered that Bennett was still dishonestly fundraising for charity, even though the watchdog had previously barred him from acting as a trustee.

The Commission opened its investigation in August 2000 and found that the public had been giving money to Bennett's company, Diabetes Help, to help people with diabetes. However, Bennett was unable to account for large amounts of the donated funds. The Commission moved to protect money that was meant for charity, and in July 2001 froze the bank accounts into which these funds were paid. The Commission reported its findings to the police in September 2001 for criminal investigation resulting in today's verdict. Later, Bennett's activities received national coverage in the BBC's Kenyon Confronts programme in December 2001.

This is not the first time that the Charity Commission has investigated Bennett's activities. The watchdog had previously opened an investigation into the Diabetes Foundation, of which Bennett was a trustee. In 1997, investigators found that a significant amount of charity funds had been diverted from this registered charity into a personal bank account. The Commission consequently barred Bennett from acting as a trustee in the future.

The Commission has today received further evidence concerning £50,000 held by Bennett, believed to have come from Diabetes Foundation. The Commission has frozen these accounts this afternoon to protect charity money.

Charity Commission Head of Investigations, David Rich, said:

"The Commission is pleased with the verdict reached today and we're glad that Arthur Bennett will not be able to continue such despicable actions, deceiving both diabetes' charities as well as the public. We are also happy today to be able to protect approximately £50,000 of charity money meant for diabetes care, for which he had been responsible as trustee.

"It is against the law for disqualified trustees to run charities and this undermines the good work of charities with legitimate trustees. We hope today's verdict will stand as a warning to anyone who would consider exploiting charities in any shape or form and will give the public confidence that the Commission will work against fundraising abuse.

"While deliberate wrongdoing in the voluntary sector is rare, we, together with the police, will continue to exercise vigilance. If any members of the public have concerns about wrongdoing against a charity they should contact us in confidence at the earliest opportunity."

DC Palmer of South Norwood Police said:

"This conviction will help to reassure members of the public who donate to charitable organisations that their generous donations should only be applied for the purposes for which they were given.

"It highlights that safeguards exist to deal appropriately with those who seek to exploit the public's generosity for their own gain and this conviction is the visible consequence of these safeguards."

A full report of the investigation into Diabetes Help will be published on the Charity Commission website in due course.

Ends

Notes to Editors

1. The Charity Commission is the organisation responsible for the statutory regulation of charities in England and Wales.

2. Further information about the Charity Commission can be found via the Internet at www.charitycommission.gov.uk or through the Contact Centre 0870 333 0123.