A trustee spent more that £110,000 of charity funds on renovating a cottage he owned and a further £69,500 on two antique clocks.
The sole trustee of North Yorkshire based Cowesby Trust, Morgan Williams, said the funding to renovate his cottage were loans from the charity.
But a Charity Commission inquiry found “no evidence to demonstrate that anyone else was involved in the decision-making process or how this unsecured investment was in the best interests of the charity”.
Williams also claimed that the spending on two antique Mulberry longcase clocks was an “investment” for the charity, even though they were displayed in his home.
“Similarly, there was no evidence provided to justify the decision was in the interests of the charity,” added the regulator.
Newly appointed trustees took custody of the clocks in 2018, which were subsequently sold for just £26,000, representing a loss of £43,500 to the charity.
The Commission first became concerned about the Trust, which was set up in 1963, when it received a report from North Yorkshire Police in 2016 about “suspicious activity in the charity’s bank account”.
While the charity was set up to provide grants to those “suffering accommodation hardship” in the Cowesby area, the regulator’s investigation into its accounts for the seven years to 2016 found that it had not spent any money on furthering its aims or on beneficiaries.
Three years ago the charity received a final settlement of £136,039 from Williams of money he owed the charity.
Williams had been sole trustee of the charity since 2008. The commission banned him from holding senior roles in charities for 10 years, from 31 August 2018.
The charity currently has the minimum number of three trustees required.
We’ve concluded our inquiry into The Cowesby Trust helping to secure the return of over £130,000 of charitable funds.
— Charity Commission (@ChtyCommission) July 11, 2023
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"The Commission concluded that Mr Morgan-Williams had been acting as sole trustee in contravention of the charity’s governing document for a period of at least 9 years,” said the regulator’s inquiry report.
“This enabled him to act unilaterally and without scrutiny. During this period there was no evidence of charitable activity and the only person to benefit from the charity was Mr Morgan-Williams.
“His decisions to use over £100,000 to renovate his personal property and to use the charity’s funds to purchase antique clocks which he subsequently had sole use and enjoyment of was in breach of trust and not in the charity’s best interests.
“Mr Morgan-Williams was responsible for serious misconduct and/or mismanagement in the administration of the charity.”
The Commission’s head of investigations Amy Spiller added: “We expect all trustees to act only in the best interests of their charity and to do otherwise is a clear breach of trust. The Commission will intervene if we find charity funds are being misused, and I’m pleased that our inquiry has been able to identify the sum of the misplaced funds which have now been repaid in full.
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