CHARITY’S HEAD OF FINANCE ADMITS £1.3M FRAUD
The former head of finance of a charity for the homeless that went bust has admitted a £1.3m fraud.
Robert Mark Davies appeared before Judge Eleri Rees at Cardiff Crown Court yesterday for a plea and trial preparation hearing.
The 49-year-old, who used to work as head of finance for Swansea-based Cyrenians Cymru, pleaded guilty on a basis of plea to one count of fraud by abuse of position.
The charge relates to the sixyear period between June 4, 2008, and November 11, 2014, and involves £1,343,074.
Davies was arrested in December 2014 on suspicion of “extensive fraud”.
He appeared at Cardiff Magistrates’ Court on February 21, where his case was sent to the crown court.
The defendant then appeared before Judge Philip Harris-Jenkins at Cardiff Crown Court on March 21 but did not enter pleas.
The malpractice came to light following an investigation by the South Wales Police Economic Crime Unit.
Speaking at the time of Davies’ arrest in 2014, the charity’s chief executive, Conrad Watkins, said the staff were “all distraught” by the investigation.
Mr Watkins said the board of trustees and senior management instigated an independent financial investigation.
He said the investigation revealed issues that were reported to the police.
Since the investigation Cyrenians Cymru was forced to declare itself insolvent and went into administration in February 2015, with 20 jobs affected.
The charity was set up in 1973 to tackle homelessness and poverty in Swansea and the wider west Wales area.
Prosecutors said he entered a “complex” basis of plea, stating the fraud was not against the charity, but against European funds.
Carl Harrison, prosecuting, said: “The prosecution case is that the fraud was against the charity and had a causative effect on the charity going into administration.”
David Leathley, defending, said the basis of plea was designed to provide a “background insight” into the offending.
The judge said that information did not belong in the basis of plea, but in mitigation.
Mr Leathley said the charity did not receive its funding through “traditional fundraising”, but through European funding.
Mr Harrison said: “We say that the fraud was a major factor in this charity ceasing to exist.”
He added the offending had had a “serious detrimental effect”.
Mr Leathley replied: “I am accepting that the charity is ruined and there could not be anything more devastating.”
Judge Rees asked if Davies was ready to proceed to sentence, but his barrister asked for more time.
Mr Leathley said his client was “a man of good character” and asked for a pre-sentence report from the Probation Service.
He said: “He knows he is going into custody. He is a father and he wishes to get his affairs in order.”
The defence barrister added: “He has had these matters hanging over his head for the better part of two years.”
Judge Rees said: “He is facing a lengthy custodial term.”
She said a pre-sentence report was not necessary.
He was remanded in custody until his sentencing date on Tuesday, April 25. There will also be a hearing under the Proceeds of Crime Act.