Christopher John Stoddard admitted misleading the public about where their donations were going and keeping money that should have gone to charity.

Stoddard, 68, from Ross on Wye, Herefordshire, who had previously been involved in nine other companies that had been declared insolvent, was the director of CS Fundraising Limited (CSF) which began trading in 2012.

The company took over the assets and contracts of an associated professional fundraising company that entered into formal insolvency proceedings in June 2012.

At its peak the company was sending out approximately 150,000 mail donation letters each month, on behalf of charities, for whom it acted as a direct marketing agency.

In November 2014, Stoddard took the decision to cause the company to cease trading and on 19 December 2014 the company was placed into creditor’s voluntary liquidation (CVL).

An Insolvency Service investigation found, and Stoddard admitted that between July 2013 and September 2014 he caused CSF to retain public donations of at least £125,634, which the company had received in its capacity as a professional fund-raiser on behalf of a charity. He also breached the duty of trust owed to CS Fundraising in that he failed to act in the best interest of the company. In addition he rented out the mailing list of CS Fundraising without accounting for the income earned. In addition, It has not been possible to ascertain the income received by the associated company.

On 13 June 2018, the Secretary of State for Business, Energy & Industrial Strategy accepted a disqualification undertaking from Stoddard preventing him from directly or indirectly becoming involved, without the permission of the court, in the promotion, formation or management of a company or limited liability partnership, for nine and a half years.

‘Members of the public who donate their money to worthy causes need to be confident that all funds, less agreed costs, are forwarded by the professional fundraising companies employed by the charities,’ said Martin Gitner, deputy head, insolvent investigations at the Insolvency Agency.

‘In this case, Mr Stoddard failed to fully adhere to legislation directly relevant to the business of his company, he failed to ensure that all due funds due to a charity were paid over and he failed to act in the best interests of the creditors of CS Fundraising Limited.

‘Directors who engage in such conduct will be investigated and by the Insolvency Service and enforcement action taken to remove them from the market place.’

Report by Rob Munro