We reported on this previously here: London diocese: Update on fraud investigation.
Today, the Birmingham Mail reported this development: Former church official from Dudley accused of ‘defrauding charity of more than £5million’
A former church official from Dudley accused of clocking up “more flights than globetrotting broadcaster Alan Whicker” has appeared in court charged with defrauding a charity of more than £5 million. Martin Sargeant worked as operations manager for the Church of England’s Diocese of London from 2008 until his retirement in 2019 and was clerk of the City church grants committee.
The 52-year-old is accused of defrauding the charitable trust – set up by an Act of Parliament in 1891 to support and fund the restoration of churches and chaired by the Archdeacon of London – of about £5.2 million over 10 years. Sargeant is also charged with money laundering after allegedly spending the funds on gambling and flying more than 180 times with British Airways..
…The fraud charge alleges Sargeant abused his position as operations manager to make a gain of about £5.2 million between January 1, 2009 and December 31, 2019. He is accused of fraudulently requesting grants for funding for dysfunctional churches to steal the money by transferring funds through church bank accounts he controlled as part of his job.
The money was then allegedly moved into accounts he controlled and that were in his name, before Sargeant spent it on “personal entertainment or frivolous things like gambling,” said Mr Packenham. Magistrates decided the charges were too serious to be dealt with in the magistrates’ court and sent the case to Southwark Crown Court, where Sargeant will appear at a later date.
How on earth did this happen? Where were the Trustees and the auditors, asleep at the wheel?
Totally the only question!
And the then Bishop of London?
Was he line managed by the archdeacon of London by any chance?
As someone who worked in the Two Cities staff team during this period, I’m fairly certain he was line managed by no-one…
That seemed to be the thrust of the Learning Lessons Review. The reviewer himself seemed confused about how he was paid, how he fitted into the Diocesan structure, and to whom he was responsible. I saw him described on several occasions as the Archdeacon’s Head of Operations, though that might be shorthand; but it would suggest that the Archdeacon might reasonably have had some role. But thr question of supervision is surely is one of the most crucial questions, and if it had been asked a few years ago, we might just possibly not be in this sorry state.
“The 52-year-old is accused of defrauding the charitable trust – set up by an Act of Parliament in 1891 to support and fund the restoration of churches and chaired by the Archdeacon of London…” Would that, by any chance, be the same Archdeacon of London who wrote down the content of the infamous ‘brain dump’ and thought it unnecessary to ask questions?
Yes – the same person. The media generally seem not to be making the connection between the two cases.
Not quite. The period of the alleged fraud covers the time of David Meara and Nick Mercer (the latter in an acting archdeacon role). Also, if memory serves me correctly, he was previously connected with another city church but I can’t remember which one.
David Meara was incumbent of St Bride’s, Fleet Street.
Yes, but he was also Archdeacon of London 2009 – 2014
Thank you for clarifying – yes, of course: the current Archdeacon of London took up his role at the beginning of 2016.
And, to be clear, Sargeant is the author of the “brain dump”.
It’s worth remembering that Mr Sargeant is entitled to the presumption of innocence and nothing should be said that would prejudice his right to a fair trial. Indeed, it should not even be asserted as a fact that any money at all is missing. What can, I think, be legitimately said at this stage is that questions have been raised which need to be resolved. That being said, it is reasonable to comment to the effect that the trustees have allowed the affairs of their trusts to reach a position where they are unable to assure themselves, or their stakeholders,… Read more »
Firstly, congratulations on your diligent research. I embarked on something similar but did not get so far!
Yes, we must not have trial by media – or the contributors to TA. On the previous thread (linked above) there was a lot of loose talk about the London Diocesan Fund and its auditors. Your researches suggest, at least to me, that much of that speculation was unfounded and should have been left unsaid. It’s now a matter for the Courts. The C of E internal inquiry was to follow the prosecution outcome.
Unreliable Narrator has very helpfully isolated the convoluted legal and financial framework within which this took place. The funds which are the subject of the alleged fraud are not strictly part of the LDF’s portfolio. And it is right that we should await the outcome of the Court Case until further comment can be made and a full inquiry can proceed. We have of course already examined the stable door in order to ensure that it is firmly bolted. But it’s a very serious matter which obviously requires more disinterment. (Sorry, that’s a terrible mixed metaphor!)
Which begs the question: regardless of guilt or innocence, why was the stable door open in the first place? Who was responsible for checking whether the padlock was still in place? And it does worry me rather that, looking back at reports of the LDF (yes, I know that it is not part of the LDF portfolio!), in the risk management section, practically every possible contingency, including clergy who impede mission, is listed, except for the possibility of internal fraud. It makes me wonder if a certain complacency had crept in. I don’t say this in a spirit of snark,… Read more »
Archbishop Justin Badi ‘Chairman of the G.S.F.A said this in a meeting of his followers: “He said that GSFA’s successful organization of an opportunity for bishops to re-affirm the 1998 biblical base for Lambeth Resolution 1.10 again in 2022, was important as a first step to signal the need for the Communion to reset its current policies and trajectory. The primate of South Sudan, home to 4-million Anglicans added: “We (the Global South) represent the global face of Anglicanism, We sound the clarion call to return to biblical faithfulness at the historical home of our Communion. And we have come… Read more »
Did you mean to post this comment on a different thread?
This is the second case of (alleged) fraud in the Diocese of London. The previous one was in the 1990s and was perpetrated by an employee in the Finance Department. He was convicted and jailed. I was also an employee at the time and we queried the lack of internal financial controls then. Things don’t appear to have improved.
We must naturally wait for the court case to hear the facts of the alleged fraud. In the meantime, Mr Sargeant needs our prayers. But he had so much influence on parishes and individuals in the Two Cities that it is not unreasonable for them, at least, to have an active interest in the case. That being so, I feel that we must get the facts straight. The reporting so far suggests that it is the Trust for London and its grants committees that are specifically under the spotlight and not the LDF, although there are significant overlaps, including the… Read more »
Thank you for this clarification, Margery, it is most helpful. I agree that getting the facts confirmed will be a priority. No doubt it will all come out in due course.
The court must run its process and come to a judgement. However ‘A significant proportion of the money was allegedly spent on 180 British Airways flights’ might suggest that he was, at the very least, living beyond his means!
From a climate change point of view, 180 flights seems incredibly selfish, unless they were for vital, life-saving business. As to the case itself, no comment.
Comment deleted.
Apologies for this, Susannah. On reflection I felt that everything that needed to be said has already been said on this thread.
You’re probably right, Rowland.
This is absolutely fair comment. And I would also bear in mind that ancient foundations sometimes have constitutions which mitigate against modern standards of governance (a certain Oxford situation comes to mind). The processes for changing this are complex. Some charities are statutory bodies and others have constitutions referrable to the Privy Council. Some of these are set up on the basis that “good chaps are Good Chaps”, and that is patently not the case on any construction of the doctrine of sin. It may require an Act of Parliament (or possibly a Measure) to secure that trustees and fiduciaries… Read more »
Yes, I agree, under English law the accused is innocent until proven guilty, save in certain types of crime. However, as a resident of Birmingham Diocese, can I sugest you don’t afford too much credence to the reporting style https://www.churchtimes.co.uk/articles/2022/12-august/news/uk/martin-sargeant-appears-in-court-charged-with-fraud-and-money-laundering of a certain newspaper? We don’t have police here any more, we have ‘cops’, who deal with ‘louts’ for example – in other words they sensationalise or trivialise everything they can! Personally speaking, you’re best reading anything they print with a very large tipper lorry load of salt. Unfortunately that style sells newspapers. Me? I’ve only got one use for… Read more »
Here’s an alternative source
https://www.churchtimes.co.uk/articles/2022/12-august/news/uk/martin-sargeant-appears-in-court-charged-with-fraud-and-money-laundering
Unless Mr Davies is referring to some other local newspaper, the reports in the Church Times and the Birmingham Mail are virtually identical and factual about the committal hearing in the Magistrates’ Court. The evidence will emerge in the Crown Court trial.
Indeed, because the report was actually authored by the PA News Agency, and the same text appeared in a number of other local newspapers all of whom subscribe to the Press Association.
According to the hearing list for Southwark Crown Court on Friday 2nd September a case T20220456 with the matching name was included.
Presumably this will have been merely entering a plea.
What are the prospects of more reports? Or of earlier notice of future court dates (if any)?
https://www.thelawpages.com/court-hearings-lists/crown-court-daily/60/lists/2022-09-02
It was indeed a plea hearing, lasting around four minutes. I believe it is possible to apply to the Southwark Crown Court for a copy of the indictment – there is probably a fee. I haven’t found any specific report of the hearing (BBC or Google), possibly unsurprising given the sheer volume of current cases in that Court. As to further reporting, no doubt this will be forthcoming in the Church Times and national press.
Martin Sargeant appeared in Southwark Crown court on Friday 14 October, and has entered a guilty plea for fraud; money laundering charge left to lie on file. Sentencing on 21 November. He’s been told to expect a custodial sentence.