Dyfed-Powys Police investigating fraud at community garden

Ashfield Community Enterprise in Howey, just outside Llandrindod Wells was deregistered by the Financial Conduct Authority earlier this year after not filing financial returns for the previous two financial years – being left, according to the new board in a “legal and financial mess.”

For 11 years the site functioned as a community growing area and social enterprise, providing allotment and growing spaces, supporting business set-up for new local enterprises and running a weekly market stall and luncheon club.

Dyfed-Powys Police, however, have now opened a criminal investigation into fraud allegations at the site.

A spokesperson for the force said: “We can now confirm that Dyfed-Powys Police is investigating an allegation of fraud relating to the enterprise.”

The investigation would appear to have been sparked after being contacted by the new interim board at Ashfield.

"Following a review of a number of legal and financial issues by the new interim board at Ashfield we took the view that some of these issues should be referred to Dyfed Powys Police for further scrutiny,” said a spokesperson for the interim board.

“The referral was made recently and we are now awaiting a formal response. Consequently, at this point in time we cannot comment further. "

These investigations are running alongside one being held by the National Lottery Community Fund who gave £434,743 as part of the National Lottery’s Village SOS fund to start the project, as well as a further 5 grants totalling £52,396.

A spokesperson for The National Lottery Community Fund in Wales said they “continue to work closely with representatives of the Ashfield Community Enterprise to collect information, as part of our ongoing investigation” but were “unable to comment further while the investigation is ongoing”.

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Debts that may have been caused over the past three years could yet fall on roughly 200 shareholders who brought £20 shares in the community benefit society.

According to the rules set out by the Financial Conduct Authority: “Any liabilities generated by the society before registration is cancelled will not be affected by cancellation. This means creditors can take legal action against remaining members of the now unregistered society to recoup these debts.”