UK Diocese Partly to Blame for Employee’s Gambling Habit, Investigation Suggests

Investigation reveals UK diocese partly responsible for staff gambling habits

Martin Sargeant has been sentenced to five years in prison for an elaborate scheme to defraud the London Diocesan Fund (LDF) of £5.2 million ($6.3 million) over 10 years to fund his gambling habit. In response to the scandal, the church launched a sweeping investigation to determine why he was able to maintain his program for so long. The diocese now recognizes that it bears some responsibility.

On Tuesday, LDF announced it had received the report prepared by accounting and consulting firm Crowe LLP. The LDF commissioned the inquiry last May.

Sargent had full authority to transfer funds into his own bank account both before and after he resigned as diocese operations manager. The report concluded that this was due in large part to a lack of personal oversight, auditing and communication between him and church officials.

FREE RULE, NO RESPONSIBILITIES

Fifteen people participated in the interview phase of the study. In addition to the former Bishop of London, Lord Chartres, and his successor, the Reverend Sarah Mullally, the then Archdeacon of London, Pierre Delaney, and his successor, Luke Miller, were also involved.

In his report, Crowe concluded there was a lack of understanding of the City Church Grants Commission's (CCGC) involvement in churches across the country. Sargent had complete control over the finances and information of the CCGC and the churches that were supposed to receive funding through the committee.

A lack of external oversight may have contributed to the ongoing fraud. Respondents noted that Sargent showed no obvious signs of living beyond his means. However, there are also no controls in place to monitor its finances.

The report also highlights the existence of various cultural and environmental measures that facilitate deception. Among other things, the survey found that respondents believed Sargent had an authoritarian demeanor similar to that of a bishop.

Crowe offered some suggestions to ensure something like this never happens again. Central to the proposals is the creation of a comprehensive framework for churches that includes financial management and project management, as well as necessary advice and support.

Additionally, accounting principles must be thoroughly evaluated, including reporting, monitoring, and disclosure assessment policies. Currently, existing policies lack clarity on the definition of information disclosure and how it is assessed.

Additionally, churches should conduct a thorough financial evaluation after each project is completed. To increase transparency, the bank account used by the registrant as a reference for transferring new services should also be verified.

END OF RULE

From 2009 to 2019, Sargent boldly and skillfully deceived the church. The 53-year-old has gained such a reputation within the parish and church that no one has ever stopped to question his actions. This gives him more trust at all levels of the system.

He has repeatedly withheld funds from the diocese that were intended for community projects at various churches. Sargent spent the money on vacations, gambling and other activities.

In July last year, he was charged with money laundering and making false statements. News of his arrest surfaced two months ago, but his identity remained secret in the meantime. In the end, he pleaded guilty to just one count of fraud in a plea deal.