An investigation into a homeless charity has uncovered serious financial mismanagement, and evidence that the charity's funds were used to benefit the charity's former CEO and former trustees.
The Ashley Foundation, which was registered as a charity in 1997, operates hostels and flats for homeless people in Blackpool, Sunderland and Blackburn. But a Charity Commission inquiry has now concluded that the charity was seriously mismanaged, and spent thousands on trustees' own properties and luxuries for the CEO.
The inquiry found that the former trustees sold off several of the charity's properties housing vulnerable homeless people, before entering into highly disadvantageous agreements with a third party to manage those same properties. It also found that in one instance, former trustee Ashley Dribben personally received £40,000 for his involvement in the transaction.
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The Charity Commission, which opened a statutory inquiry into the charity on March 20, 2020, also identified significant personal benefit, including the use of thousands of pounds of charity funds on the repair and upkeep of personal properties belonging to former CEO Lee Dribben and his son Ashley.
The inquiry further found that Lee Dribben used charity expenses on luxury travel and meals, including over £3,000 on a three-night trip to London, with first class travel and meals at Le Caprice and the Wolseley Hotel. On the same trip, £45 was claimed for a bottle of wine at a restaurant in Covent Garden.
Charity money was also inappropriately spent on luxury items including Apple Watches, flat screen TVs and silk sheets, which the former CEO claimed were gifts for associates, the report revealed.
On one occasion, Lee Dribben used the charity's funds to purchase a Spymaster tracking system, which the inquiry was told was used to surveil individuals during contract negotiations with the charity. The report notes that the inquiry did not accept this was appropriate use of the charity's funds, and that "covert activity is unacceptable" for a charity.
The regulator's report stresses that the charity's current trustees have taken action to rectify governance problems, including in successfully re-acquiring the sold properties and terminating the agreements. The Commission is now satisfied the appropriate controls are in place to safeguard the charity's assets moving forward.
The Commission concluded that there was serious misconduct and mismanagement in the administration of The Ashley Foundation, and took action to disqualify Lee Dribben and Ashley Dribben from charity trusteeships and senior management for 15 years, and former chair of the charity, David Kam, for 10 years.
The Commission also used its powers to safeguard the charity's assets, by freezing bank accounts and preventing further sale of property. The inquiry referred its concerns about potential criminality to Lancashire police.
Amy Spiller, Head of Investigations at the Commission, said: "Our investigation found that the former trustees and CEO misused this charity and received significant unauthorised personal benefit from funds intended to help vulnerable homeless people.
"Trustees must use their charity’s funds to further the charity's purposes and ensure there are robust financial and controls in place to stop the abuse of these funds.
"I commend the current board of trustees for identifying the serious wrongdoing and initiating action to put the charity's house in order. I hope that their work, and our intervention, means the charity is now able to deliver on its charitable purposes to help the homeless across Blackpool, Sunderland and Blackburn."
Lisa Edwards, Chair of Trustees of the Ashley Foundation, said: "We thank The Charity Commission for its thorough investigation and welcome its report.
"This statutory inquiry was undertaken after myself and the current CEO raised concerns about the conduct of a number of former trustees and the former CEO.
"The findings of the investigation are deeply distressing, but are, sadly, as we suspected. This is why we took our concerns to both the Charity Commission and Lancashire Police three years ago.
"We would like to make it clear the trustees and former CEO referred to in the Commission's inquiry report are no longer, in any way, connected to the Ashley Foundation.
"We thank The Charity Commission for its recognition of the diligent work the current board of trustees has undertaken to ensure the charity's future and that robust financial controls have been put in place.
"This has been a difficult period for the Ashley Foundation and I would like to thank our residents, dedicated staff, trustees and local authority partners for their help and support during this time. We look forward to continuing to provide vital services for homeless people across the north of England."
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