A VETERANS charity investigated by the police following an allegation of fraud has announced it is closing.

Blue Apple Veterans, which was established in 2012, announced the news ‘with deepest regret’ to ‘prevent further debts being incurred’ last Thursday.

Cheshire Police confirmed it has carried out enquiries linked to the organisation located in the town centre, on Buttermarket Street, but the force will not be taking any action.

A spokeswoman said: "Police investigating an allegation of fraud conducted a number of lines of enquiry and the investigation has now been closed."

The Charity Commission is also aware of the concerns surrounding the organisation, along with the closure plans.

A spokeswoman said: "We can confirm that we have had regulatory engagement with Blue Apple Veterans in the past, including around concerns about the charity's governance and financial management.

"In light of renewed concerns about the charity's management, we will be re-engaging with the trustees to ensure the charity's assets are protected and the trustees are aware of and fulfilling their legal duties.

"We are aware of the trustees' intention to wind the charity up."

In a Facebook post last Thursday, the board of trustees said 'it is with deepest regret that as a result of recent activity the charity cannot rely on further income of any consequence'.

In a statement to the Warrington Guardian, they added: "We can confirm that we have acted in accordance with the Charity Commission rules and specific guidance when given.

"We are saddened by the inevitable impact this will have on the veterans and their families who were supported by the charity and this is something we have been trying hard to avoid for some time.

"Unfortunately, the income now does not meet the operational costs and under Charity Commission rules we were obliged to close the charity to avoid incurring further debt."

Founder Mark Smith raised his fears over the closure and said the organisation has 'saved lives and marriages' in recent years.

He added: "I am disappointed, we could have moved to a new premises and have gone really small.

"This could cost the lives of some veterans."

The trustees believe 'all outstanding matters' will be completed by the end of March, in accordance with the Charity Commission's regulations.

The accounts for September 30 2016, as well as the annual return for 30 September 2016, are also both 167 days overdue.