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Cancer funds fraudster faces jail | Cancer funds fraudster faces jail |
(about 3 hours later) | |
A man has admitted taking almost half a million pounds from his cancer fundraising company. | A man has admitted taking almost half a million pounds from his cancer fundraising company. |
Tony Freeman, 40, from Glasgow, admitted fraudulently removing more than £450,000 from his business before it went into liquidation. | Tony Freeman, 40, from Glasgow, admitted fraudulently removing more than £450,000 from his business before it went into liquidation. |
He said the fundraising company owed the money for a computer software deal. | He said the fundraising company owed the money for a computer software deal. |
Instead, the money was transferred to an account in Cyprus. Freeman was remanded in custody and will be sentenced in Glasgow next month. | Instead, the money was transferred to an account in Cyprus. Freeman was remanded in custody and will be sentenced in Glasgow next month. |
Solutions Recruitment and Management Consultancy was launched in December 2000. | Solutions Recruitment and Management Consultancy was launched in December 2000. |
Mr Freeman took advantage of the support there is for people affected by breast cancer Lorraine DallasBreast Cancer Research Scotland | |
Up until the middle of 2003, Freeman was paying himself £190,000 a year to run the company. | Up until the middle of 2003, Freeman was paying himself £190,000 a year to run the company. |
But his activities came under the scrutiny of the watchdog the Scottish Charities Office and charity commissioners south of the Border. | But his activities came under the scrutiny of the watchdog the Scottish Charities Office and charity commissioners south of the Border. |
They found Freeman's two clients - Paisley-based Breast Cancer Research (Scotland) and their sister organisation Breast Cancer Relief based in Manchester - had paid millions for his services. | They found Freeman's two clients - Paisley-based Breast Cancer Research (Scotland) and their sister organisation Breast Cancer Relief based in Manchester - had paid millions for his services. |
The result was that the charities' bank accounts were frozen. | The result was that the charities' bank accounts were frozen. |
Lorraine Dallas of Breast Cancer Research said: "Mr Freeman took advantage of the support there is for people affected by creast cancer sufferers. | |
"He will have to live with the guilt of taking advantage of that very personal experience for the rest of his life." | |
The charity promised to offer relief to cancer sufferers | The charity promised to offer relief to cancer sufferers |
Then a judge at the Court of Session in Edinburgh ordered that Freeman and three other trustees should play no further part in their running. | Then a judge at the Court of Session in Edinburgh ordered that Freeman and three other trustees should play no further part in their running. |
The investigation uncovered a £11.5m hole. | The investigation uncovered a £11.5m hole. |
More than £13m had been donated but only £1.5m had been passed on to good causes. | |
Freeman was supposed to have collected £8m of the £11.5m in commission for his role as fundraiser. | |
The Scottish Charities Office claimed the cancer charity had been "used as a vehicle for Mr Freeman and Solutions RMC to collect money and charge excessive commission". | The Scottish Charities Office claimed the cancer charity had been "used as a vehicle for Mr Freeman and Solutions RMC to collect money and charge excessive commission". |
Charity commissioners in England moved in to freeze the accounts of the Manchester cancer charity, believing that Solutions RMC were also taking considerable sums from them. | Charity commissioners in England moved in to freeze the accounts of the Manchester cancer charity, believing that Solutions RMC were also taking considerable sums from them. |
Software claim | Software claim |
Freeman himself was banned from running any charity in the UK and in June 2003 and after the Court of Session hearing, Solutions RMC went into liquidation. | Freeman himself was banned from running any charity in the UK and in June 2003 and after the Court of Session hearing, Solutions RMC went into liquidation. |
The figures uncovered by the Scottish Charities Office also prompted a police investigation which eventually led to Freeman's arrest. | The figures uncovered by the Scottish Charities Office also prompted a police investigation which eventually led to Freeman's arrest. |
The investigation found that on 30 May, Freeman pretended to staff that £450,337.65 was due to Eesh Aggarwal Ltd for providing Solutions RMC with computer software. | The investigation found that on 30 May, Freeman pretended to staff that £450,337.65 was due to Eesh Aggarwal Ltd for providing Solutions RMC with computer software. |
He even produced paperwork to back up the bogus deal and asked the firm's accountant to sign a cheque. The money ended up in the Federal Bank of the Middle East. | He even produced paperwork to back up the bogus deal and asked the firm's accountant to sign a cheque. The money ended up in the Federal Bank of the Middle East. |
I want to see Mr Freeman punished well Sam McFauldsFundraiser | |
The court heard that Mr Aggarwal was a chartered accountant and tax specialist but not a software developer. | The court heard that Mr Aggarwal was a chartered accountant and tax specialist but not a software developer. |
At the High Court in Edinburgh, he was ordered to pay back £210,000 of the proceeds of his crime within five weeks. | At the High Court in Edinburgh, he was ordered to pay back £210,000 of the proceeds of his crime within five weeks. |
Sam McFaulds raised thousands for the charity after his wife died of breast cancer. | |
He said: "I raised £10,000 and it was a pleasure to do that. I would do the same again. | |
"But I want to see Mr Freeman punished well, I think he should rot in jail." | |
Advocate depute Graeme Jessop, prosecuting, said Freeman had been the sole director of Solutions RMC. | Advocate depute Graeme Jessop, prosecuting, said Freeman had been the sole director of Solutions RMC. |
Tighter control | |
The company ran a lottery, door to door collections and used volunteers to sell raffle tickets. The turnover was in the region of £5.4m a year. | |
Freeman's guilty plea to a breach of the 1986 Insolvency Act halted plans for a five-week trial which was due to begin next week. | Freeman's guilty plea to a breach of the 1986 Insolvency Act halted plans for a five-week trial which was due to begin next week. |
His not guilty pleas to other charges, including tax dodging and breaching the Proceeds of Crime Act by taking money out of the country were accepted. | His not guilty pleas to other charges, including tax dodging and breaching the Proceeds of Crime Act by taking money out of the country were accepted. |
The investigation back in 2003 prompted the Scottish Parliament to look at ways of bringing the country's estimated 30,000 charities under tighter control to increase public confidence. | The investigation back in 2003 prompted the Scottish Parliament to look at ways of bringing the country's estimated 30,000 charities under tighter control to increase public confidence. |