Watchdog fears illegal organisation infiltrated Dublin charity

Bank accounts tied to the charity have been frozen.

Accounts tied to Liberty Recycling have been frozen as part of an investigation by the money laundering unit within the Garda National Economic Crime Bureau.

This comes after large amounts of money were diverted from the organisation for the benefit of another unlawful organisation, according to the Charities Regulator.

Liberty Recycling was set up to help recovering drug addicts nationwide.

It has headquarters in Dublin as well as a logistics depot, and nine retail premises across the country.

In legal documents, it was found: “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."

Among that seized in investigation searches were computers and documents, two BMW X5 SUVs worth €250,000 and designer watches and bags valued at €40,000.

Purchases of a Porsche last year and a BMW SUV earlier this year bought “in the name of Liberty Developments” and “in the possession and control of a senior staff member” are also being looked at.

Additionally, during searches last July, €34,705 in cash, believed to belong to Liberty Recycling, was found in a staff members home in suspicious circumstances.

Court documents for the High Court, prepared by the Charities Regulator, contain details of the allegations, including large sums in international transfers, seemingly routed through the charity's accounts.

Earlier this week, Judge Brian Cregan appointed Shane McCarthy and Cormac O’Connor of KPMG as provisional liquidators to the company following the regulators petition, which stated: “These transactions comprised substantial international transfers of funds which were not commensurate with the level of activity taking place in the [Liberty Recycling] charity."

“Suspected laundering of the proceeds of crime through the charity’s bank accounts” are also said to be examined in the Garda investigation.

While the charity is a legitimate entity that helps recovering drug addicts with work and training, the alleged activities of a small number of people either engaged by the group or with links to it, is being investigated.

The charities trustees, including chairman and Sinn Féin TD Aengus Ó Snodaigh, are not under suspicion or investigation by the Garda, but their governance approach has been strongly criticised by the regulator, who said the trustees did not seem to appreciate the seriousness of the allegations.

Moreover, the regulator has invited trustees to explain how a senior staff member at Liberty Recycling owned a private cleaning material company that was operating from the charity’s depot and exported goods to Europe.

Sinn Féin commented in a statement, highlighting Ó Snodaigh's “reiterated” support for the investigation and that he would remain available help the process.

“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.”

Featured image: Rolling News / Sasko Lazarov.