The Charity Commission has opened statutory inquiries into two charities over possible related-party transactions and conflicts of interest.

The regulator has launched separate investigations into Solev Co Limited – which has general charitable purposes but with particular reference to Jewish education, religious activities and the relief of poverty –  and Hatzlocho Limited, which aims to advance the Orthodox Jewish faith and relieve poverty.

According to information available on the charities register, the charities share three of the same trustees: Philip Michael Kremen, Michael Julian Blake and Romie Tager.

The regulator opened its inquiry into Solev Co Limited on 13 December amid concerns over related-party transactions recorded in the charity’s accounts and whether conflicts of interest had been managed appropriately.

The commission said that until recently, the trustees were all part of the same family and added that the previous trustees were all closely related. 

The regulator said its investigation would also investigate why the charity had failed to submit accounts and annual returns within the statutory timeframe for the past five years. 

Solev Co Limited is in default with its 2023 and 2024 accounts, the regulator said.

According to the charities register, both charities’ accounts are overdue by more than a year.

The regulator opened its inquiry into Hatzlocho Limited on 19 December to examine concerns similar to those relating to Solev Co Limited.

Both inquiries will investigate the extent to which the trustees have complied with their statutory reporting duties, including the submission of the charities’ annual reports and accounts.

The investigations will also look at whether trustees acted in accordance with their legal duties, particularly regarding the composition of the trustee board, the management of the charities’ finances, related-party transactions and conflicts of interest.

The regulator will also examine whether any failings identified in the administration of the charity are a result of misconduct or mismanagement by the trustees.

A representative of both charities’ boards declined to comment on the inquiries on the advice of their solicitors.