A police investigation has begun into a disability charity in Camden after it reported suffering “serious financial problems”.

Disability in Camden (DISC), which was forced to sack all its staff and effectively close down last month, has been a lifeline for many of Camden’s disabled residents for over 40 years.It offered advice, advocacy and employment training and made direct social care payments.

But officers say they are now investigating a fraud at the charity, believed to have taken place over two years.

Aaron Dryden, who became chief executive in February after the former CEO stepped down in December, said he was forced to act after discovering “serious financial problems”.

“We are working with officers across council departments, as they are investing heavily in managing this process effectively,” he said. No arrests have been made.

Individuals close to the organisation suggested unauthorised payments made “to certain people” may have left a substantial hole in the finances.

The subsequent closure is a devastating blow to disabled users in the borough, some of whom already complain about a dwindling level of support.