Ashimolowo’s Church Face Another Criminal Probe
The City of London police are investigating an alleged fraud involving a former Premier League footballer who lost £3.9 million from a British Church, Kingsway International Christian Centre.
The Church is owned by a popular Nigerian Pastor Matthew Ashimolowo, the Guardian reports.
The footballer lost the money to one of the Britain’s richest evangelical churches in a disastrous investment scheme.
The criminal investigation follows a Charity Commission report into “mismanagement” at the Church, which invested £5 million with the former Charlton Athletic player Richard Rufus.
Rufus was found by a civil court judge in 2015 to have operated a Ponzi-style scheme between 2007 and 2011, losing or spending £8 million from several investors.
Rufus was a leading member of the KICC whose “founder, visionary and senior pastor” a Nigerian evangelist who preaches a “health and wealth” gospel at his “Prayer Palace” in Kent.
The largely African and Caribbean churchgoers are urged to give regular tithes and the church collected £5.8 million from them in 2015, according to the latest accounts.
In 2009 and 2010 the trustees agreed to give Rufus £5 million to invest after he promised them returns of 55 per cent a year at a time when interest rates were less than 1 per cent.
As well as millions in donations from churchgoers – which were boosted by gift aid tax relief – it had recently received £10 million from the London Development Agency, a public body that needed to demolish the Church’s then home in east London to build the Olympic Park.
“Detectives from City of London police’s fraud teams are investigating,” a police spokesman confirmed. There have been no arrests.
In a damning set of conclusions published in December, the Charity Commission said the trustees “did not exercise sufficient care” when they gave Rufus the church’s money.
The regulator said they failed to check if Rufus had any investment qualifications or experience and gave little thought to the extraordinarily high rate of return Rufus was promising.
The church’s senior management team concluded his “personal guarantee makes this as safe an investment as any” and produced a report on the investment that included no checks on Rufus’s past investment performance or any references from clients.
It is the second time the Charity Commission has had to investigate the church.
In 2005, when it was known as the King’s Ministries Trust, the regulator ordered Ashimolowo to repay £200,000 after it emerged he used church assets to buy a £13,000 Florida timeshare and spent £120,000 on his birthday celebrations, including £80,000 on a car.
New trustees were appointed and Ashimolowo was removed from his role as chief executive.
Ashimolowo knew about the investment with Rufus, the church’s chief operating officer James McGlashan told the Guardian, but Ashimolowo denies being any part of the decision to invest the money as he was not a trustee of the KICC.