Support the Heroes has also had its assets frozen in the wake of a BBC Scotland investigation
A veterans charity has been ordered to suspend fundraising activities following a BBC Scotland investigation.
Support the Heroes told undercover journalists that its fundraisers were working on a voluntary basis with 100% of public donations going to veterans’ causes.
But in a later statement, the charity confirmed donations were used to make payments to workers and a management company as well as going towards operating costs.
The investigation, The Great Military Charity Scandal, was broadcast earlier this month on BBC Scotland.
The Commission has directed the charity to suspend fundraising activities until further notice and issued a freezing order on assets
Following the revelations, the Charity Commission launched its own investigation. The watchdog has now ordered Support the Heroes to stop taking donations and also issued a freezing order on the charity’s assets.
A spokesperson for the commission said: "The commission opened a statutory inquiry into Support the Heroes on 10 November to further investigate public concerns about fundraising activities conducted on its behalf, and the management of conflicts of interest and arrangements with a professional fundraiser.
"The commission has directed the charity to suspend fundraising activities until further notice and issued a freezing order on assets held directly by the charity or on its behalf.
"The decision to open the statutory inquiry follows on from the commission's recent preliminary investigation into the charity's activities."
Support the Heroes says it offers help to veterans suffering from post-traumatic stress disorder. The charity claims to have raised more than £220,000 since it was founded in 2014.
In a statement on its website, the charity said: “Support the Heroes is ‘a real charity’. It is registered and compliant with the Charity Commission and its guidelines.
“It is not a ‘fake charity’. It is not and never has been a ‘fraud charity’. All contributions are accounted for, none are or ever have been misappropriated.”