Dublin charity may have been infiltrated by illegal organisation, watchdog fears

Significant amounts of money may have been diverted away from Liberty Recycling, a charity established to help recovering drug addicts, and taken for the benefit of an unlawful organisation, the Charities Regulator has said.“Based on the information currently available, it appears that some of this conduct [in the charity] is unlawful and/or was carried out for the benefit of an organisation, membership of which is unlawful,” the regulator said in legal documents.The criminal investigation into Liberty Recycling was instigated by the Garda and is being carried out by the money laundering unit within the Garda National Economic Crime Bureau.However, the regulator has, since July, been briefed by gardaí on progress with the investigation and is offering assistance.READ MORELiberty Recycling, which has a nationwide reach, a Dublin headquarters and logistics depot, and nine retail premises across Ireland, has had its bank accounts frozen as part of the Garda investigation.While computers and documents were also seized during searches last week, along with two BMW X5 SUVs worth €250,000 and designer watches and bags valued at €40,000, evidence suggesting significant further irregularities has since emerged.These came to light after detectives reviewed the material seized last week. They are investigating the purchases of a Porsche last year and a BMW SUV earlier this year, with the latter bought “in the name of Liberty Developments”. Liberty Recycling operates a charity shop on Camden Street in Dublin. Photograph: Chris Maddaloni/The Irish Times Liberty Developments holds funds available to Liberty Recycling, but the vehicle was “in the possession and control of a senior staff member”.It has also emerged that some €34,705 in cash, believed to belong to Liberty Recycling, was found in suspicious circumstances at the home of a staff member during Garda searches in July of last year.Details of the allegations are contained in documents prepared by the Charities Regulator for the High Court. The regulator has also expressed serious concern about large sums in international transfers that appear to have been routed through the charity’s accounts.[ Regulator seeks urgent wind up of Liberty Recycling to protect sector’s reputationOpens in new window ]“These transactions comprised substantial international transfers of funds which were not commensurate with the level of activity taking place in the [Liberty Recycling] charity,” the regulator has said in its petition documents to the High Court seeking the appointment of provisional liquidators.The Garda investigation into the charity is also examining “suspected laundering of the proceeds of crime through the charity’s bank accounts”. Though the charity is a legitimate entity that offers work and training to recovering drug addicts, gardaí are examining the alleged activities of a small number of people either engaged by it or with links to it.The trustees of the charity, including its chairman, Sinn Féin TD Aengus Ó Snodaigh, are not under suspicion, and are not under investigation by the Garda. However, the regulator has strongly criticised their approach to governance. It said the trustees did not appear to appreciate the seriousness of the allegations of criminality being made, continued to back senior personnel at the charity and had not suspended anyone pending the outcome of the criminal investigation.The regulator has also invited the trustees to clarify how a private company, which exports cleaning materials across Europe, was owned by a senior staff member at Liberty Recycling and was operating from the charity’s depot in Bluebell, Dublin 12. Judge Brian Cregan on Tuesday appointed Shane McCarthy and Cormac O’Connor of KPMG as provisional liquidators following a one-side-only-represented application by James Doherty, counsel for the regulator.Sinn Féin TD Aengus Ó Snodaigh, chairman of Liberty Recycling, supports the Garda investigation and is available to assist, the party said. Photograph: Stephen Collins/Collins In a statement, Sinn Féin said Ó Snodaigh “reiterated” his support for the continuing Garda investigation supported by the Charities Regulator and would remain available to assist.“Deputy Ó Snodaigh has remained in regular engagement with the office of the Charities Regulator over the past week since confirmation of the investigation emerged, and he remains available to assist An Garda Síochána with their inquiries.”