Beware the charity conmen: Warning after bogus Children In Need collector dressed as Pudsey Bear led gang that stole at least £500,000 from charities

Charities have been warned to ensure fundraisers are 'legal' after a fake Children In Need collector dressed as Pudsey Bear led a gang which stole from charities.

David Levi led a group of bogus collectors who fleeced generous members of the public out of more than £500,000 intended for a good cause.

The 48-year-old was jailed for five years and handed a Serious Crime Prevention Order after he admitted fraud and money laundering at Preston Crown Court. The order prohibits him from any fundraising activities for five years - or risk being returned to prison.

Now, a regulator has warned organisations to take steps to ensure fundraising activities carried out in their name are 'open, honest and legal' - after the fake do-gooder proclaimed that he 'wants to carry on fundraising'.

In emails to the BBC, following his conviction, the Pudsey Bear scammer said he enjoys raising money for good causes and 'fully intends' to fundraise again in the future.

In December 2023, the court heard how the conman splashed out on a luxury cars and holidays after posing as a fundraiser for charities including BBC Children In Need, The Christie, and other charities.

Levi, from Lytham, even dressed up in a Pudsey Bear suit and produced fake badges and marketing material to make his scam appear legitimate. When he was caught, he claimed he had made his wealth through escorting, and was lucky at casinos and bookies.

'I can make a grand a week', he told officers upon his arrest.

In reality, the court heard he targeted supermarkets to make 'bucket collections' which had not been authorised.

Gerald Oppenheim, chief executive of the Fundraising Regulator in England, Wales and Northern Ireland, said the scam was a 'shocking breach of trust'. He stressed the 'vast majority' of charity fundraising was genuine, but urged charities 'to ensure they have robust oversight to ensure fundraising carried out in their name is open, honest and legal'.

Sentencing Levi, Judge Andrew Jeffries KC said less than 10 per cent of the £500,000 traced through the conman's bank accounts made its way to the charities it was intended to help. He said Levi and his gang 'preyed upon the public's generosity - and in many cases, private grief.'

'The British public is always ready to give to a good cause and especially to any charity which helps children who are sick, those with cancer and Children in Need', he said. 'They give generously, even when many may not have much themselves.'

He vowed to ensure no other scammers could operate in the way Levi and his gang had by passing deterrent sentences. 'The words despicable and brazen have been used and I echo those here', he said. 

'The court will endeavour to ensure that no further bogus collections are made for charity so that members of the public can give with confidence as they have in the past.'

The biggest loser was the BBC, whose Children In Need charity lost out on £47,000 donated by kind-hearted members of the public. In an email exchange from behind bars, Levi denied being a scammer and claimed he and his six codefendents simply pocketed expenses for their fundraising activities - which 'ran into thousands.'

Alison Brown, director of Children In Need, said she was concerned Levi's bogus activity would put people off donating towards vital support for children and young people. However she said the money 'did get to where it was needed'.

Mr Oppenheim agreed Levi's scam was 'potentially very damaging' and said people should not be pressured into donating on the spot. He said it is always possible to check whether a collector is legitimate before handing over any money.

An audio recording shows Levi, who was jailed today for five years, telling police he received much of his money from 'escorting' when he was really conning Brits out of thousands of pounds.

'I don't know where it's come from but it's not charity money,' he said. 'I was doing a bit of escorting as well at the time, which I wasn't going to bring up, which is very good money.'

When asked by police if he had records for his escorting, Levi said: 'Clients don't like [...] receipts. They like discretion.'

He added: 'Escorting, on the odd times that I did it, you can make a grand a week, sometimes two grand a week.'

Levi and his gang of fraudsters were so dedicated to the scam that they designed and made fake charity material including ID badges, pull-up banners and a Pudsey Bear suit for Children In Need.

To try to cover his tracks Levi would contact each charity, obtain a fundraising pack and use this to claim he was a genuine collector in case he was questioned by store staff or the police, with collections taking place all over the country.

Even when supermarket staff challenged the fraudsters about the bogus collections they were told they would lose their jobs or be reported to the national press.

Also involved in the scam were Howard Collins, 73, who helped organise collections and went out collecting. He introduced a number of people to GOSH and wrote letters claiming to be from the North of England Events Office - which did not exist.

William Ormand went out collecting, but the court heard that he was also involved in paying other collectors and appears to have assisted Levi. Martin Ebanks, 59, Robert Roy Ferguson, 63, and Stephen Chesterman, 63, also collected for the conspiracy.