The tax man cometh: UniMed UK’s embattled Sound Foundation Community Care Charity

SFCC-driveway-2015UK’s HM Revenue & Customs has rewarded our complaints about Universal Medicine’s sham UK charity with a big fat tax bill to Sound Foundation Community Care. Almost £400,000.

What happened?

The Sound Foundation Charitable Trust ended up with a VAT (value added tax) liability of £378,426 (AUD650k). HMRC and the UK Charity Commission (UKCC) don’t release findings to complainants or public. However, seeing the charity has very little meaningful income, we can reasonably assume the 20% VAT applies to the construction of the Sound Training centre using donated funds. UM tried to pass the £1.85m construction off as a premises with a charitable purpose, but HMRC has rightly found it’s operating for commercial use. Charity law is complex, however, Serge Benhayon’s upper rung of enablers have enough law and accounting qualifications between them, and one of the trustees, Michael Nicholson, is a chartered accountant. They have no excuse. The building is used nearly exclusively for the Benhayon cash raking circus commercial activities. It was a pretty obvious scam.

According to the latest charity accounts published on the UKCC website, it appears the charity received a retrospective bill between September 2014 and January 2015. The building was completed in March 2012, and the largest VAT bill between then and September 2014 was £5921.

I’d like to thank our friends in the UK who helped us achieve this outcome. Thank you very much!

From trust to company

We noticed in January 2015 that the Sound Foundation charitable trust suddenly and inexplicably incorporated into Sound Foundation Community Care, a company limited by guarantee. Unfortunately, we had to wait until the 2015 accounts were published in the last couple of weeks to determine why.

An incorporated company structure, as opposed to a trust, protects the trustees from personal liability. The trust was a building fund. We have student notes and communiqués describing fundraising to construct a ‘Universal Medicine conference centre’ with treatment rooms and a swimming pool facility. When the trustees copped the near £0.38m tax bill, it appears they’ve scrambled to avoid liability by shifting to the new company structure.

I don’t know what legal position they’re in at this point. The press might be able to find out more, or we may have to wait until next year’s accounts to get the real picture.

What next?

The Sound Foundation Community Care charity is not required to publish their accounts until mid next year. However, the current overview on the UKCC website shows the liability was still outstanding in September 2015. All assets were transferred from the trust to the new structure, along with the tax debt. The current figures on that page are unhealthy. The charity is operating at a loss. The charity’s income is woeful (see below). It has a £2m (AUD3.4m) asset with expensive upkeep and barely enough cash in reserve to sustain operation, plus a giant £0.38m debt.

I don’t know enough about tax enforcement in the UK, but watch this space. Someone will have to pay. I can’t see the beneficiary of this whole rort, Serge Benhayon, fronting up with it, even though he very amply has the reserves, thanks to years of scamming. Next in line might be Michael Nicholson, who donated over £1m to the building fund in 2011 and 2012. Musician, Chris James, was the charity’s founder, but quit as a trustee soon after it was incorporated.

The remaining trustees are Dragana Brown, NHS manager and cervix whisperer, Jane Keep, retailer Stephen Anderson, and London Esoteric Breast Massager and company director of Esoteric Women’s Health Pty Ltd and All Rise Say No, Sara Williams. Trustee Simone Benhayon is company director of UM UK and All Rise Say No, on top of her swim school Creative Aquatic.

Given Benhayon’s congregation has atrophied to less than 600 and he’s already milked them as much as he can, the flock is unlikely to bail the charity out.

Again, I don’t know what this means for the charity at this stage, or the building. The Sound Training Centre is plonked on The Lighthouse B&B headquarters property (doubles as UM’s UK headquarters) outside of Frome in rural Somerset. It’s difficult to imagine there’s a demand for hire of cult branded event spaces out there. It’s a high maintenance asset on land on a 999 year lease to the Lighthouse owners, ardent UM devotees, Simon and Janet Williams.

History

In 2010, UM’s Way of the Livingness applied for charity status in the UK as a religion. It was denied. The Charity Commission found it was not a genuine religion and demonstrated no public benefit. Problems with the dissolution clause in the trust deed gave the Commission cause for concern the trust deed might allow the trust’s assets to be applied for non-charitable purposes. 

UM then merely adopted a latent existing charity founded by Benhayon’s business associate Chris James, without disclosure to the UKCC. They extracted donations from followers on the promise the facility was for UM’s use and would be owned by the ‘student body’. UM filled the trust with donated funds and built the Sound Training Centre. Benhayon’s stepdaughter, and charity trustee, Simone, leases the pool year round for her commercial swim school. Some local Esoteric practitioners hire the treatment rooms. The conference facility is used for 3 months each year, May, June and November for Universal Medicine events, retreats, workshops and group and individual healing sessions conducted by UM leader, Serge Benhayon, his family and associates.  The conference centre is barely used for the remainder of the year.

The trust’s only charitable activities were promotions of UM and associates, and a pitiful grant to a local hospital.

The UKCC commenced an investigation into the charity’s UM connections mid 2013 and issued the trust with a mandatory compliance plan in October that year over trustee conflicts of interest and issues of public benefit. (The same reasons it was denied charity status in the first place.) After that the charity shuffled papers and people. Some of the trustees quit their company directorships of commercial UM UK Ltd, and UM altered its commercial publicity to say that it just hired event space from the trust.

Sound-Foundation1

Universal Medicine cult’s £2m Sound Training Centre, Tytherington, Frome, Somerset

Ongoing scamming

Even if they can find £380k, Benhayon’s congregation shouldn’t bail this out. Not after they’ve been treated so appallingly by the UM outfit, which has deceived them from the beginning, and continues to.

Donors were led to believe it was a legitimate ‘Universal Medicine Trust’. Then they were told the building would be owned by the trust for the ‘students’. They were told Universal Medicine UK was a not for profit ‘unit of service’ presenting ‘on behalf of and for the Sound Foundation a charity’…whatever that means. They were pressured to make regular cash donations, including via direct debit, and to volunteer their time and labour.

The charity now claims to have 40 volunteer staff, and since the UKCC action, Benhayon and his minders have conned the slaves into carrying out something resembling charity work to prevent the CC from shutting it down altogether. In the latest accounts the trust has had to itemize charitable activities. Only a couple of events were held at the Sound Training Centre. Peaky Blinders director, Otto Bathurst, held a meeting to talk about men’s health, for example. The rest were held offsite, consisting of volunteers doing hospital and nursing home visits, singing and whatnot, perhaps buttering up the elderly to make bequests.

Like the Australian charity (update for that parallel mess coming soon), the only real beneficiaries are the Benhayons, and above all Serge.

Charitable swimming

As discussed in last year’s update, Simone has been leasing her Creative Aquatic swimming facility – heated indoor pool, changing rooms, toilets etc. for £10k per annum. A knock down rate. Moreover, she’s been writing off ridiculously large ‘donations in kind’ to the charity. The charity accounts show ‘charitable swimming activities’ (truly) notched up as both income and charitable spending. Notes in the accounts claim the donations in kind take the form of ‘medical and rehabilitation swims’ and discounted lessons, pool access and memberships.

The value of all of this philanthropic swimming?

  • 2013 £81,000
  • 2014 £95,362
  • 2015 £30,577 (6 months only)

Breaking this down, she’s claiming roughly £1500 worth of swimming per week, that she performs from a 15m pool barely big enough to do proper laps in, and she runs about fifteen swim lessons spread between five teachers per week. Normal price swim access is £3. A lesson is £5. An annual, normal priced membership £10. The pool is open about six hours per day broken up into sessions. Do the maths. Her business would be hard pressed to turn that over each week, yet she reckons she donates that much to the charity on top of running the swim school.

Universal Medicine UK

Simone’s stepfather, Serge, takes a full Australian entourage to the UK for 3 months annually. They take over the whole centre and run about 60 days of advertised workshops, retreats etc. Additional private and group healing sessions, classes and other activities run by his family and associates are advertised to the mailing list only. Plus merchandise sales. The 5 day retreat alone was attended by over 230 followers in 2012, at approx. £1000 per person, and images show attendance of well over 100-200 at other events.

SoundFoundationpaxemin1

Esoteric Massage – Sound Foundation trustee Sara Williams centre foreground

SoundFoundationsingalong

UniMed cult event at the Sound Training Centre near Frome, Somerset

Benhayon and that lot paid a total of £5833 for that 3 months of hire. Less than £100/day (I estimate about £75/day) to turn over hundreds of thousands of pounds, if not over a million.

For some perspective, what they pay doesn’t cover the building’s energy bill for the same period. The building’s power bill is £28k per annum. (£75/day).

According to the accounts Benhayon hired the facility through Universal Medicine UK Ltd. The charity accounts falsely state he is a company director of UM UK. He has never been. Benhayon’s turnover evidently doesn’t go through the UM UK company, so where does it go? Does he pay tax on it? Anywhere?

In short, Benhayon’s followers funded what they thought would be a legitimate charitable premises for him to deliver his sermons and healing scams, so that he pays miniscule commercial overheads for an annual turnover of hundreds of thousands of GBP that he appears to export.

To add insult to injury, he’s set up his daughter and major donor, Michael Nicholson, as trustees of a bent charity that was always wide open for regulatory action. They’ve been hit with a giant tax bill, and they’re probably legally liable. And Serge’s name is nowhere near it. Rather, he’s building a huge new $1m+ McMansion in the hills near Lismore – enhancing his 8 figure property portfolio.

Were followers informed of the tax liability? Have they been informed of who will pay it?

We’ll have an ear out for what happens next.

Baseless complaints?

I’ll take the opportunity to remind readers that since May 2014, UM have publicly labelled us liars, falsely accusing us of false accusations and labelling me a ‘criminal’, saying I’ve broken the law by making baseless complaints to regulators. The Sound Foundation’s 2014 accounts devoted a few paragraphs to spraying Lance and I for running a ‘trolling campaign’ – referring to the complaints that resulted in regulatory action by the UKCC in 2013. They’ve persisted with those defamatory fictions for 2 years, yet, on top of the 2013 UKCC action, Benhayon and the charity directors have known about this HMRC bill – a frank confirmation of tax evasion – for over 18 months.

We might call it a killer blow to UM’s credibility, but they had none to begin with.

Benhayon’s faith-full have invested a lot on their devotion to him, and are showing signs of expenditure fatigue. They’ve overlooked an enormous number of lies and while they’ve fired off plenty of flak they’re set to wear just as much. Question is, will they wear this as well?

More posts on UM’s Sound Foundation charities 

Advertisements

19 thoughts on “The tax man cometh: UniMed UK’s embattled Sound Foundation Community Care Charity

  1. Ooops. I have no doubt paws will be smacked and someone will be banished to the astral plane. Those pranic people at HMRC have decided to persecute the UniMob and grab a load of the Messiah’s dosh without so much as a thought for the suffering they cause. Oh woe is Sergio.

  2. Aaow!!!!
    Sergey you’re not ok
    Sergey in the UK
    You’re not ok Sergey
    UMers you’ve been hit by, you’ve been struck by a smooth criminal……….AGAIN
    Aaow!!!

  3. The global legal world is closing in
    It was inevitable
    Truth will always surface and justice will prevail
    The absolute obnoxiousness of Serge Benhayon to think he is above the law with his public scams and in your face tacky bullshit cult
    Interesting to see a control freak now being legally controlled himself, something he would absolutely hate
    No room in a small cell for a big tractor
    And no glorified crapping, just prison guards for an audience on a monitor
    Great watchdog work Esther, warning the world of this hideous human

  4. Fascinating. It may well be that Simone, aka Winston Churchill, is a marvellous teacher and deserving of multitudinous awards but who is S[redacted]s. I’m sure I’ve heard that name somewhere.

    • Sorry to do this Pranic Puss, but I removed the name there. You’re not to know but she’s a juvenile – daughter of The Lighthouse keepers, ex UM UK company directors. Poor kid’s name and image is shopped all around the internet to sell all sorts of dubious UM tripe, including Sergio’s underaged slumber parties, defamation AND anti-cyberbullying. It’s my policy cult kids aren’t identified on my sites.

      Ha! I forgot about Winston, as mentioned in the Leser article. Apparently Simone resembled the old sausage from a young age. http://www.smh.com.au/lifestyle/the-da-vinci-mode-20120820-24h50.html

  5. Naughty, naughty!

    How illuminating is the constant rotation of directors and charity/business structure. Nothing unusual going on here is there? Glad HMRC has caught up with them. And as it’s a VAT bill there should not be any wriggling out of it – large tax bills are often negotiated down but not with VAT. Shame Benhayon’s name is not on the liability but his stench is all over it.

  6. The charity was getting very fat,
    Then it got a big bill of VAT.
    And like everything else Benhayon considers a hit,
    It soon turns to a very big pile of shit.

    The minions did scramble,
    To hide their contribution to this scandal.
    But you can only con for so long,
    before the good people expose your wrong.

    Sergio your day is coming,
    And very soon we all hope you’ll be slumming.
    We’re watching your every move,
    And your transgressions will not be hard to prove.

  7. As Esther points out, Serge is very good at keeping himself out of harms way. When the ACNC investigation was on here, he resigned as chairman which he had just told a reporter he would never do as he didn’t want his work “bastardised”. He then diverted an $1.4m bequest from the charity coffers and to his own. He’s now building a house worth that at least. The ‘fiery building’ fund hasn’t been touched so the money taken from members, hitherto seen gathering like smiling lemmings as Serge pitched them, is failing to build the HQ for the new world religion. Simone, aka Winston, is in the firing like for the UK tax bill along with Serge’s chief Brit sycophant Mr Abacus Williams.

    I don’t know if the ATO work retroactively here but it would be nice if they decided that it was never a charity and tax should be paid on those funds. I’ll pitch that to them soon. Serge already enjoys GST free income from his ‘education’ courses which means he most probably gets significant GST refunds every quarter on the money he declares.

    I’d have to say, deciding to run a cult and claiming he knows everything was a good move as it’s put him in a grey area of law and ethics. Whether Serge planned it, or just got lucky, he’s been dodging bullets for over 25 years. Being a fifth level master from Sham-ballah with his HQ at Con-very’s lane confuses the hell out of those that should take action.

    But action has been taken. The cult constantly spin that he’s been exonerated at every turn. The truth is, he’s just avoided taking the blame for a multitude of questionable activities too long to list. He’s put others out front to take the hits, rubbish their reputations, and look like fools. Sadly, they probably feel privileged to be in that position.

    One thing is for sure, we know he and the cult don’t like Esther and I. Those damned baseless complaints. 🙂

  8. Sounds like a necessary ‘karmic correction’ to me. It’s a good thing Serge imparted the ‘revelation’ that money ‘heals’ (even though ‘Capitalism is evil’). That £380k should go along way towards serving the community, unlike UM’s bogus modalities.

  9. Alison Greig wrote this early this year on the UM site, echoing several such posts written since regulatory action was taken several times.

    Lance, please mention Sergio’s UK income to the ATO.

    It’s unfortunate the regulators don’t release outcomes of their investigations. They do sometimes to news outlets, so let’s hope we find out, but given UM attempted to conceal this action for 20 months, who knows what else they’re not disclosing. HMRC could have billed Serge and Simone for all we know. The ATO might have as well.

    HMRC acted 20 months ago, so what is the status of that debt? The only info available publicly refers to the accounts up to September last year – nearly a year ago.

    Good comment MacReady, the £380k VAT will actually serve the public. I’m wondering if HMRC or UKCC has powers to seize assets.

    Let’s face it, all that charity is doing now is visiting elderly people. You don’t need a conference facility for that, or six cult sycophant trustees.

  10. Thank you Esther and team for your sticktoitiveness. Noun = dogged perseverance; resolute tenacity.

    Justice, though moving slowly, seldom fails to overtake the wicked~Horace, Odes, (23 BC)

    • Great quote and you can’t argue with Horace. The mans got some years of experience behind him 😉

  11. HMM!

    Is this the reason why Chris James has endured an apparent ‘code blue’ in hospital recently? Just asking?

    After all Chris James has been with $erge for many years and worked so so hard for $erge surely by now he would have cured all of his past present and future ill’s from singing and scouting & drumming up many $’s for $erge.

    Get better soon Chris James $erge need$ you to carry the can for him.

    • The man has a huge weight problem, no wonder he’s ended up in hospital. I hope whatever health issues he has are dealt with and he recovers soon.

  12. Believe I’m right in saying that Simon Williams used to offer ‘Esoteric Financial Health’ at The Lighthouse … I imagine it was wiped off the list of facilities offered as it would likely conflict with ethics of his professional Accountancy qualifications! Still, with both his accountancy expertise as director of several companies based at The Lighthouse and Mr Nicholson’s professional knowledge as Trustee of the UK Charity based there, you would have thought there would have been no mistakes with Tax, VAT, or Charity laws, policies and procedures. What do their professional bodies or HMRC make of it? I imagine Mr Williams helps relieve UMers of their financial worries ….
    https://uk.linkedin.com/in/simon-williams-88660718

    [Comment copied from the Exposed site. Admin.]

    • No mention of his UM activities on the Linkden page. Seems members are daily more and more reluctant to advertise their membership of UM. Why would this be if it’s the wonderful, positive group they used to claim it was?

      Poor old Ray doesn’t stand a chance because he’s associated with these loons.

  13. Just the Unimed living listed there but some familiar UM faces too. Universal medicine is listed in his resigned from companies.
    Hadn’t actually thought of the mayoral role but can see possibilities Esther!
    Also I see that amongst others he has recently become a director in a business described as “Other education not elsewhere classified” and various “Lanhydrock” businesses including what appears to be a long standing family estate in Cornwall of which he is accountant, chartered accountant and Company director all using the registered address as The Lighthouse … Anyway I just thought there were a few similarities there. https://beta.companieshouse.gov.uk/officers/SQd-sJ7M9-WtIIYKZyenTyq4ACw/appointments

Comments are closed.