Charity's bank accounts frozen as gardaí investigate alleged money laundering

Bank accounts belonging to Liberty Recycling, a Dublin-based textile recycling charity, have been frozen as An Garda Síochána investigates suspected money laundering. The Charities Regulatory Authority disclosed the freeze in legal submissions to the High Court, stating that the institution’s financial channels appear to have facilitated unlawful conduct. The regulator argued that adequate measures were not implemented by the charity to prevent such actions from occurring or persisting. Liberty Recycling, which trades under that name despite being incorporated as Liberties Recycling, operates nine charity shops nationwide alongside a sorting depot. The organization employs approximately 95 staff members and focuses on assisting individuals affected by drug addiction. Incorporated in 2001, the charity maintains its headquarters at Bluebell Industrial Estate in Dublin 12. Aengus Ó Snodaigh, a Sinn Féin Teachd Dála, serves as the charity’s chairman. Other directors include Linda Behan and Brian Behan. The regulator indicated that it first learned of the police inquiry into the charity’s finances in July 2026. Following initial cooperation with law enforcement, two regulator representatives met with gardaí on October 14. During this meeting, officials explained that the investigation targeted suspicious transactions routed through the charity. These included substantial international fund transfers that did not align with the organization’s operational scale. The probe specifically examines the activities of senior personnel and the potential laundering of criminal proceeds via the charity’s banking facilities. Concerns were raised regarding several vehicles acquired by the organization. In 2025, searches at the residence of a senior staff member uncovered €34,705 in suspicious circumstances, believed to belong to the charity. On October 20, gardaí executed searches related to the investigation. Officers seized two BMW X5 vehicles, along with watches and designer bags. Subsequent analysis of seized materials revealed further irregularities, including the purchase of a Porsche in 2025. Additionally, a 2026 BMW jeep was identified. This vehicle is registered to Liberty Developments but was in the possession and control of a senior staff member. The High Court was informed that Ó Snodaigh, acting as chairperson, authorized the creation of two non-charity entities associated with the main organization. One entity was established to participate in a Department of Social Protection scheme, while the other addressed Value Added Tax issues regarding clothing sales proceeds. Ó Snodaigh also signed a letter indicating no objection to a third entity involved in car trading. Chief Executive Madeline Delaney of the Charities Regulator stated in an affidavit that allowing these separate corporate structures to exist represented a total failure of governance. She noted that the charity’s operations and assets were conflated with these non-charitable bodies. Delaney expressed serious concern that the charity’s resources were being utilized for unlawful purposes. She described the acquisition of high-value vehicles for senior staff as highly irregular and deeply concerning for a charitable body. The regulator asserted that the charity’s property was being misapplied or poorly managed due to misconduct by staff. Furthermore, there was a lack of effective oversight by the trustees. Since the Garda money laundering unit began its work, the charity took no precautionary steps to protect its assets from misuse or dissipation. The regulator filed a petition requesting that Liberty Recycling be wound up. It sought the appointment of liquidators and the redirection of existing funds to a similar service provider. The High Court granted permission for the appointment of liquidators. The named trustees, including Ó Snodaigh, are not currently under investigation. However, the regulator noted that while there is no evidence the directors were directly involved in or aware of the wrongdoing, they permitted the problematic corporate structure to continue. Philip Moloney, the charity’s chief executive, along with Anthony Geoghegan, Linda Behan, and Sean Cassin, are directors of Liberty CE Scheme Project Company Limited. This entity was created to engage with the community employment scheme. A Sinn Féin spokesperson stated on Tuesday that Ó Snodaigh reiterated his support for the ongoing police investigation. He has maintained regular contact with the regulator. On the same day, Ó Snodaigh met with the newly appointed liquidators. He emphasized that the welfare of the charity’s service users must remain the priority during this process.