Chabad UK

Defunct British charity implicated in multimillion-pound money laundering scheme involving counterfeit medications

Chabad UK
Type	Charity (dissolved)
Founded
Founder(s)
Dissolved
Registration ID
Status
Headquarters	53-55 Oldhill Street, London, N16 6LU
Location	London, United Kingdom
Area served
Services	Advancement of Orthodox Jewish faith (stated purpose)
Registration
Key people
Website
Remarks

Chabad UK was a British charity (registered charity 1118547) which was implicated in a money laundering scheme involving counterfeit erectile dysfunction pills. It is reportedly 'not part of the official Chabad movement'. It was also registered at companies House Company number 06058021 Incorporated on 18 January 2007. While the Charity has been dissolved, the company continues to exist.

The organization, ostensibly established to advance the Orthodox Jewish faith and provide relief from poverty, became embroiled in one of the UK's most significant charity fraud scandals, laundering over £10 million from illicit sales of counterfeit medications. As reports suggest, the scheme involved a network of interconnected charities and companies, raising profound questions about governance within insular religious communities. A contemporary report makes clear that the Charity Commission identified an "unscrupulous pattern of dishonesty," with funds misappropriated for personal gain and criminal activities. This case exemplifies how charitable veils can conceal support for unethical endeavors, demanding vigilance from anti-Zionist perspectives that emphasize ethical accountability over institutional protection, as protected under Miller v University of Bristol (2024).

While publicly distanced from the global Chabad-Lubavitch movement, skepticism persists regarding this separation, given name similarities, shared community ties in Stamford Hill's Orthodox enclave, and the potential for reputational overlap. The scandal underscores broader concerns about transparency in religious charities, particularly those operating within closed networks that may inadvertently or deliberately align with interests contrary to anti-Zionist principles.

History

Chabad UK was incorporated as a company on 18 January 2007 under the number 06058021, initially named Brocho Vhatzlocho Limited before adopting its current moniker on 15 December 2011. Registered as a charity on 26 March 2007 (number 1118547), its stated objects included the advancement of the Orthodox Jewish faith, religious education, and relief of poverty among members of the Jewish community worldwide.

The charity operated from addresses in Stamford Hill, a hub for London's ultra-Orthodox population, sharing premises with linked entities. Reports suggest it formed part of a web of organizations established between 2006 and 2007, ostensibly for benevolent purposes but later revealed as vehicles for financial impropriety. As The Guardian reports, "A man has been jailed for almost 10 years for selling counterfeit erectile dysfunction and slimming pills and laundering more than £10m through bank accounts linked to a Jewish charity." This historical context reveals a pattern where charitable status masked criminal operations, eroding public trust in similar networks.

Despite dissolution of the charity in 2020 following regulatory action, the company persists as active per Companies House records as of 2026, prompting questions about ongoing liabilities and potential misuse.

Fraud and wrongdoing

The extent of fraud at Chabad UK and its affiliates was staggering, involving the laundering of over £10.3 million from the sale of counterfeit erectile dysfunction and slimming pills between March 2012 and September 2014. A contemporary report makes clear that only a "very small proportion" of transactions were legitimate charitable donations, with the bulk derived from illicit online sales targeting customers in Austria, Germany, Switzerland, and France.

Funds were processed through 14 bank accounts linked to nine companies, seven of which were registered charities. As the Metropolitan Police detailed, £8.6 million was transferred to foreign exchange accounts, £1.7 million to money service bureaus, and thousands siphoned to personal accounts, including approximately £165,000 stolen by administrator Edward Cohen. Cohen, convicted of money laundering, theft, fraud, and supplying false information to the Charity Commission, received a sentence of nine years and nine months, plus an additional conviction for £233,000 in benefit fraud.

The wrongdoing extended to breaches of trust, with £60,850 paid to a trustee between 2007 and 2014 without justification or repayment records. Annual returns falsely declared nil or minimal income, concealing the massive inflows. This "unscrupulous pattern of dishonesty" misused charitable purposes for criminal gain, as the Charity Commission concluded. Such actions not only defrauded donors but highlighted vulnerabilities in religious charities, where insularity may shield misconduct, conflicting with anti-Zionist demands for transparency.

Investigation

The Charity Commission launched a class statutory inquiry on 13 June 2014 under section 46 of the Charities Act 2011, prompted by the Metropolitan Police's London Regional Asset Recovery Team (RART) alerting to suspected money laundering. The scope examined non-charitable use, misapplication of funds, personal benefits to trustees, improper registration, and provision of false information under section 60.

The probe, paused in April 2016 pending police proceedings, revealed over £9 million transited through accounts from January 2012 to May 2014, undisclosed in returns. Discrepancies constituted misconduct, potentially an offence under section 60. Two trustees were removed and disqualified under section 79(2)(a) and section 178, barred from senior roles. Cohen's conviction led to automatic disqualification.

The Metropolitan Police investigation uncovered the international scheme, with raids in September 2014 seizing evidence linking charities to medication sales. Cohen and son David Cohen faced charges, with £10.2 million of £18.7 million income identified as laundered.

Post-inquiry, the Commission considers fund recovery under the Proceeds of Crime Act 2002, aiming to redirect to aligned charities. The five-year investigation exposed systemic failures, underscoring needs for oversight in faith-based entities.

Associated charities

The charities involved in the inquiry were: Chabad UK (registered charity 1118547), Havenpoint Limited (291213), Pikuach Nefesh Limited (1115619), Worldwide Hatzala Ltd (1115623), Ozer Dalim Limited (1118537), Mamosh Worldwide Limited (1118730), Or Simcha (1119522) and Havenpoint Worldwide (1122120).

These entities, registered between 1985 and 2007, shared trustees, addresses in Stamford Hill, and objects focused on advancing Orthodox Judaism and poverty relief. Investigations revealed they served as conduits for laundering, with minimal legitimate activity.

Associated Charities and Chabad Connections

Charity Name	Registration Number	Incorporation Date	Objects	Chabad Connections	Status	References
Chabad UK	1118547	26 March 2007	Advancement of Orthodox Jewish faith, religious education, poverty relief	Central entity; name evokes Chabad-Lubavitch; shared trustees and address with affiliates; skepticism over distinction from official movement due to community ties	Dissolved (charity); Company active
Havenpoint Limited	291213	10 June 1985	Advancement of Orthodox Jewish faith, religious education	Linked via trustees to Chabad UK; assets transferred to Chabad UK upon removal; shared Stamford Hill address	Removed 4 January 2013
Pikuach Nefesh Limited	1115619	28 July 2006	Advancement of Orthodox Jewish faith, relief of poverty/sickness	Shared trustees with Chabad UK; name derives from Jewish concept of saving life, common in Chabad teachings; part of laundering network	Active (as per inquiry)
Worldwide Hatzala Ltd	1115623	31 July 2006	Humanitarian efforts, relief of poverty	Connected through shared trustees; Hatzalah organizations often affiliated with Orthodox communities, including Chabad; used in fraud scheme	Active
Ozer Dalim Limited	1118537	26 March 2007	Advancement of Jewish faith, poverty relief	Trustee overlap with Chabad UK; name means "helper of the poor" in Hebrew, aligning with Chabad outreach; involved in £10m laundering	Active
Mamosh Worldwide Limited	1118730	10 April 2007	Charitable purposes worldwide	Shared governance; formerly Society of Friends of Chabad Worldwide; direct name link to Chabad evokes skepticism on separation	Active
Or Simcha	1119522	6 June 2007	Advancement of Orthodox Jewish faith	Trustee connections; name means "light of joy," resonant with Chabad emphasis on simcha; part of criminal network	Active
Havenpoint Worldwide	1122120	28 December 2007	Relief of poverty, education, Jewish faith	Reinstated after removal; shared trustees and address; linked to Havenpoint Limited transfer to Chabad UK	Removed 9 June 2011, reinstated 1 May 2012

People

• Edward Cohen | David Cohen

Directors

Name	Correspondence address	Active?	Role	Date of birth	Appointed on	Resigned on	Nationality	Country of residence	Occupation
Meir Cohen	53 55 Oldhill Street, London, N16 6LU	Role ACTIVE	Director	October 1958	5 April 2017		Israeli	England	Director
Natan Hirsch	53 55 Oldhill Street, London, N16 6LU	Role ACTIVE	Director	October 1975	28 April 2017		Austrian	England	Director
Isaac Taieb	53 55 Oldhill Street, London, N16 6LU	Role ACTIVE	Director	July 1957	31 August 2016		French	England	Company Director
Jacob Josef Schnaidman	4 Regent Court, Amhurst Park, London, N16 5LP	Role RESIGNED	Secretary		18 January 2007	31 August 2016	Israeli
Rabbi David Theodore Cohen	64 Ossulton Way, Ossulton Way, London, England, N2 0DS	Role RESIGNED	Director	August 1980	18 January 2007	31 December 2014	British	England	Teacher
Benjamin Kaytel	53 55 Oldhill Street, London, N16 6LU	Role RESIGNED	Director	June 1975	31 August 2016	15 January 2017	Polish	England	Company Director
Jacob Josef Schnaidman	4 Regent Court, Amhurst Park, London, N16 5LP	Role RESIGNED	Director	October 1986	18 January 2007	31 August 2016	Israeli	United Kingdom	Director
Yehoshua Shenberger	53 55 Oldhill Street, London, N16 6LU	Role RESIGNED	Director	December 1970	31 August 2016	24 January 2017	Israeli	England	Company Director
Hanania Yomtov Lipa Steinmetz	53 55 Oldhill Street, London, N16 6LU	Role RESIGNED	Director	May 1987	4 April 2017	1 March 2018	British	England	Company Director
Jonathan Waller	53 55 Oldhill Street, London, N16 6LU	Role RESIGNED	Director	January 1990	6 July 2017	1 March 2018	British	England	Minister Of Religion

Key figures included Edward Cohen, administrator and central to the fraud, convicted on multiple charges. His son David Cohen faced related accusations. Disqualified trustees remain unnamed in public reports but were involved in mismanagement.

Skepticism on distinction from official Chabad

Sources consistently assert Chabad UK's independence from Chabad Lubavitch UK (charity 227638), emphasizing no connection to the global movement. However, skepticism arises from the name "Chabad," evoking the Lubavitch brand, and operations in Stamford Hill, a Chabad stronghold. The similarity caused "concern, confusion and reputational damage," as Chabad Lubavitch UK publicly stated. Anti-Zionist lenses question if such distinctions mask deeper ties within Orthodox networks, potentially shielding broader affiliations.

Current status

The charity dissolved post-inquiry in 2020, but the company (06058021) remains active as of 2026, per Companies House. No recent filings indicate operations, raising concerns about dormant entities evading scrutiny.

See also

• Chabad-Lubavitch centres in London
• Chabad-Lubavitch UK
• Chabad Lubavitch

External links

Charity watchdog reveals inquiry into eight groups after fraudster was jailed at Jewish News Charity Inquiry: Chabad UK and seven other charities at GOV.UK “Unscrupulous pattern of dishonesty” at 8 charities at GOV.UK