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Martin Sargeant sentenced to five years for £5.2m diocesan fraud

19 December 2022

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Southwark Crown Court

Southwark Crown Court

THE former Head of Operations in the Two Cities, in London diocese, Martin Sargeant, has been sentenced to five years in prison for defrauding the London Diocesan Fund (LDF) of £5.2 million over a decade.

Mr Sargeant, who is 52 and from Dudley, was charged with fraud by false representation and money laundering in July (News, 15 July). News of his arrest had emerged two months previously, but at the time he could not be named (News, 25 May). In October, he pleaded guilty to one count of fraud (News, 21 October).

He was sentenced at Southwark Crown Court on Monday, which heard that Mr Sargeant had “defrauded the church in a persistent, sophisticated and frankly brazen manner” between 2009 and 2019.

A statement from the diocese of London on Monday said: “The fraud was historic in nature, its origins dating back to around 2009, and did not relate to the Common Fund, Bishops’ costs, or the present-day funding of parishes. In court, it was explained that Mr Sargeant had fraudulently applied for grants on behalf of City churches, and then appropriated funds for his own gain.”

It continued: “Over the past year, the LDF worked closely to support the Police and to maintain the confidential, sensitive nature of their complex investigation at the Police’s request. Any church or other organisation known to be relevant to these enquiries was approached as part of the investigation. The Police’s work involved extensive analysis of financial records relating to both the Diocese and Mr Sargeant over a long period and the securing of a court order to freeze his assets.”

The chair of the London Diocesan Fund’s Audit and Risk Committee, Richard Perry, said: “Last year, our auditors carried out an urgent review of our present-day financial controls, to confirm they are robust.

“A further independent fraud enquiry, conducted by external forensic accountants, is being commissioned now the court case is complete, and it will report to the London Diocesan Fund’s trustees next year.”

The Bishop of London, the Rt Revd Sarah Mullally, thanked the Police and the LDF’s financial team for their investigations.

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