A children’s charity set up by a £4.5million lottery winner is being investigated over financial misconduct allegations.
Former hairdresser Barry Chuwen set up The Teddy Bear Foundation with wife Jenny in 2004 after the couple had a stillborn baby at six months.
The organisation – which has a string of high-profile supporters including British Airways and Clydesdale Bank – claims to have spent £500,000 providing special needs kids with Euro Disney trips, riding lessons and massage sessions.
But charity watchdog OSCR is investigating serious concern surrounding both “governance and financial controls”.
The probe was launched last year into payments made by the charity to a company connected to one of its trustees.
OSCR has now stepped in to ensure property owned by The Teddy Bear Foundation cannot be sold.
The regulator said: “We are concerned that there has been misconduct in the administration of the charity and consider it necessary and desirable to take protective action in respect of the charity’s property.
“We have therefore issued a formal direction to the charity’s bank preventing it from parting with any property of the charity without OSCR’s consent.”
Chuwen – who lives in a £1.5million mansion in Glasgow’s plush Whitecraigs – scooped £4.5million when his numbers came up in September 1997, when he was just 27.
Despite the massive windfall, he continued to work at his salon next to Glasgow’s Queen Street station for 15 months before setting up a property company.
His firm Jasper Wishaw and its subsidiaries bought up commercial properties to rent out, including Glasgow’s Italian Centre and the Versace shop.
But the £30million portfolio went bust in 2013 after the Bank of Scotland, who had provided for most of the assets, pulled the plug on spiralling debts.
Another of his companies – MQ Estate Agents Limited – entered liquidation in 2020.
Barry and his wife Jenny were left devastated in 2004 when son Ted was stillborn after being diagnosed with Edwards syndrome.
The loss inspired the couple to set up the Teddy Bear Foundation to help children with special needs.
Its website claims the charity has spent close to £500,000 providing special needs children with Euro Disney trips, riding lessons and massage sessions, as well as building sensory gardens.
The organisation also claims to have funded advanced testing techniques on children to identify conditions not easily diagnosed within the NHS.
Chuwen last night declined to comment on the OSCR investigation.
Don’t miss the latest news from around Scotland and beyond – Sign up to our daily newsletter here .
