INVESTIGATION INTO “SIZEABLE SYSTEMIC FRAUD” AT AGE UK
Released On 22nd Jan 2024
Gloucester Police has confirmed it has interviewed an employee of Age UK Gloucestershire under caution after reports of a “sizeable, systemic fraud” dating back to 2016. A file passed to officers suggests that the charity’s county operation could have lost almost £460,000. According to Age UK Gloucestershire’s Chief Executive Matt Fellows, the fraud was discovered in July 2023 when a finance manager discovered a payment in the accounts that did not match the budget. Following an internal investigation into this anomaly, further fraudulent payments were found.
Mr Fellows, who has stepped down from his role, which he stresses was an entirely unrelated decision, said that the loss will severely hamper the charity’s ability to operate effectively, as it equates to between five and six per cent of Gloucestershire Age UK’s annual income.
A spokesman for the national charity said that it could confirm that a police investigation is underway regarding a former employee from Age UK Gloucestershire.
Meanwhile, Mr Fellow said that the Gloucestershire branch wants to be open and transparent about the fraud itself but also about the response to it to ensure that it can’t happen again.
Roger Issacs, Forensic Partner at Milsted Langdon, said: “Age UK Gloucestershire is to be congratulated by being so frank about the tragic financial loss that it has suffered.
“All too often charities and businesses that fall victim to fraud are so worried about damage to their reputations that they avoid publicity and may not even report matters to the police. This means that awareness of the extent of this type of white collar crime remains under-reported.
“More importantly, it is to be hoped that by letting others know about what has befallen Age UK Gloucestershire other charities will learn from its experience and be encouraged to strengthen their internal controls.
“Meanwhile, there will no doubt be a thorough investigation by forensic accountants at Age UK Gloucestershire to find out what happened and what steps can be taken to prevent it from happening again.”
Sources: BBC News
