Captain Sir Tom Moore's daughter and son-in-law gained "significant personal benefit" from their links to a charity set up in his name, according to a damning report from the Charity Commission.
Hannah Ingram-Moore and her husband Colin made "repeated failures" while running the Captain Tom Foundation, the watchdog found in its 30-page investigation published yesterday.
The couple have been disqualified from serving as charity trustees following the two-year inquiry.
The investigation revealed "repeated instances of a blurring of boundaries between private and charitable interests", according to the commission's CEO David Holdsworth.
The report details how the Ingram-Moores failed to separate their personal interests from Captain Tom's autobiography and other ventures tied to the foundation's name.
Among the most significant findings was a £1.4million book advance paid to the Ingram-Moores' company, Club Nook, for Captain Tom's autobiography "Tomorrow Will Be A Good Day".
Captain Sir Tom Moore's daughter and son-in-law gained "significant personal benefit" from their links to a charity set up in his name
PA
The commission found the public "would understandably feel misled" about the book sales, as statements implied donations would benefit the charity.
According to documents from Penguin Books, the initial £1.5million advance was reduced to £1,466,667 after a planned fourth book was cancelled.
The watchdog revealed that "to date the charity has not received any money from the first publishing agreement".
The arrangement highlighted concerns about the unclear boundaries between the Ingram-Moores' personal business interests and the foundation's charitable activities.
Hannah Ingram-Moore retained £18,000 for judging and presenting an award named after Captain Tom, despite claims she undertook the engagement in a personal capacity.
The inquiry found no evidence to support her position, noting she committed charity resources without other trustees' knowledge or consent.
The charity received only a £2,000 donation from the event, separate to her fee.
Questions also emerged about Hannah Ingram-Moore's salary expectations. While she claimed she was "not offered" a "six-figure salary", the inquiry found these assertions "disingenuous".
Hannah Ingram-Moore and her husband Colin made "repeated failures" while running the Captain Tom Foundation
PA
Written evidence showed she had stated expectations of a £150,000 remuneration package before starting the role, though the commission blocked the initial salary request.
The watchdog found this was another instance where personal and charitable interests became entangled.
The Ingram-Moores also faced criticism for misusing the charity's name in a planning application for a building on their private property in Marston Moretaine, Bedfordshire.
The application implied the building would be used by the charity, but they failed to inform or seek consent from other trustees.
The local authority subsequently ordered the building's demolition.
The inquiry concluded that the couple had used the charity's name inappropriately for private benefit.
This misuse of the foundation's name amounted to misconduct and mismanagement, according to the commission's report.
The regulator also found that intellectual property owned by the Ingram-Moores was offered to the charity without appropriate agreements.
This lack of proper arrangements led to confusion and possible financial losses for the charity.
Releasing the report, Charity Commission CEO David Holdsworth said: "Captain Sir Tom inspired a nation and reminded us what service to others can achieve even in the most challenging of times."
However, he added that "the charity set up in his name has not lived up to that legacy of others before self, which is central to charity."
Holdsworth emphasised that charities must make an "unambiguous distinction" between personal interests and charitable causes.
The Ingram-Moores have stated they "fundamentally disagree" with their disqualification as trustees.
In a statement, they cited "profound emotional upheaval and financial burden" as reasons for not appealing the decision.
The family has previously admitted to being "incredibly naive" but insisted they are "wholesome, good people and we run businesses we understand."
The foundation is expected to close once the inquiry concludes, according to the Ingram-Moores' legal team.
