A convicted fraudster who stole £27,000 from a probation firm had previously used £180,000 of charity money to renovate a cottage and buy antique alarm clocks, an inquiry reveals today.
Hugh Morgan-Williams used his role as trustee of The Cowesby Trust to access the money, according to the final report of a seven-year Charity Commission statutory inquiry.
The regulator discovered that, between 2009-2016, none of the charity’s money was used to further its objective of making grants to those suffering accommodation hardship in Cowesby, near Thirsk.
Instead, the sole trustee Morgan-Williams spent £110,000 of charity funds on the cottage renovation.
The regulator’s report said: “While the trustee claimed the sum had been obtained through three loans from the charity, the 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.”
Morgan-Williams also spent £69,500 on two antique Mulberry longcase clocks which he claimed were an “investment” for the charity.
The commission said: “The clocks were however displayed in his home. Similarly, there was no evidence provided to justify the decision was in the interests of the charity.”
The Cowesby Trust was established in 1963 to relieve, either generally or individually, people who live in the parish of Cowesby or any neighbouring parish who are in need, hardship or distress.
The investigation began when, on 3 February 2016, the commission received a report from North Yorkshire Police relating to suspicious activity in the charity’s bank account.
In October 2016, the commission directed the charity’s two banks not to part with any of the charity’s property without approval from the regulator. It then suspended Morgan-Williams and appointed two additional trustees in June 2017.
In August 2018, the Commission disqualified Morgan-Williams from being a trustee of a charity and/or holding an office or employment with senior management functions in charities for 10 years.
In April 2020, the charity received £136,039.79 from Morgan-Williams in full and final settlement of the sums he owed to the charity.
The two Mulberry clocks were also subsequently sold, securing funds that could be used to support beneficiaries.
The charity now has the minimum number of trustees required by its governing document.
Amy Spiller, head of investigations at the commission, said: “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.”
Last month, Third Sector reported that Morgan-Williams could lose his OBE after being handed a suspended 33-week jail sentence for stealing almost £27,000 from a probation firm.
North Yorkshire Police said it had contacted the honours department of the Cabinet Office, which made him an OBE in June 2008 for services to business in the North East.
Morgan Williams was handed the sentence, suspended for 12 months, after he admitted to fraud while he oversaw a privatised probation organisation which received money from the public purse.
He pleaded guilty to the charge after six other counts against him were discontinued due to a lack of evidence.
They included allegations that he had committed fraud and false accounting while sole trustee of the Cowesby Trust.
A North Yorkshire Police press release said Morgan Williams took £26,966 from Durham and Tees Valley Community Rehabilitation Company (DTVCRC) while he was interim chairman.