Multiple sources are now reporting that the Archewell Foundation, co-founded by Prince Harry and Meghan Markle, has filed for bankruptcy after over $1 million in donations mysteriously disappeared from the nonprofit's accounts, leaving the organization in dire financial straits.
The unfolding details surrounding this developing story have sent shockwaves through both the philanthropic and royal communities. In April 2020, shortly after stepping down as senior working royals, Harry and Meghan announced the formation of Archewell. The name was described as a fusion of the Greek word for "action" and the concept of "goodwill."
Through Archewell, the couple aimed to foster compassion and community-building by launching partnerships with various organizations focused on issues such as racial justice, gender equity, climate change, mental health, and more. Donations poured in from around the globe as the public rallied behind Harry and Meghan's post-royal endeavor. However, it now appears that the foundation's finances have taken a catastrophic turn.
Just last week, Archewell filed for Chapter 11 bankruptcy protection in California, citing debts exceeding $10 million while reportedly having only around $100,000 in available assets. The bankruptcy filings suggest that litigation is anticipated from creditors seeking to recover lost funds. This shocking news has raised serious concerns within the philanthropic community, with many questioning the whereabouts of the donation money.
Financial documents obtained by TMZ reveal that none of the projects or partnerships listed by Archewell seem to have received the funds allocated to them, despite millions being donated for these specific programs and causes. Red flags began to emerge last fall when partner organizations reported that they had not received the promised funding from Archewell. When questioned, foundation representatives provided vague excuses, citing delays due to COVID-19 and the complexities of setting up the new nonprofit. Now, these organizations are threatening legal action if they do not receive both answers and their funds.
An anonymous source close to the situation remarked that it appears no one truly understood what was happening with the donations, and that no proper financial controls were in place. The situation takes an even more dramatic turn with reports indicating that Meghan Markle herself may be named as a defendant in the expected litigation. Allegations suggest that she was heavily involved in overseeing Archewell's finances and directing the allocation of funds. Emails obtained by a law firm preparing a class action lawsuit against Archewell and its leadership reportedly show Meghan personally discussing large transfers of money. However, representatives for the Sussexes have insisted that Meghan had no involvement with the missing funds and was merely an unpaid adviser to Archewell, not responsible for its finances.
With so much money unaccounted for, questions have arisen about Meghan's role in the oversight of the foundation. Speculation has emerged regarding potential conspiracy theories, including embezzlement or the possibility that donations were funneled into Harry and Meghan's personal expenses. It is important to note that none of these theories have been proven at this point. Nevertheless, the allegations are serious enough that the couple may find themselves entangled in a massive legal quagmire. If these accusations are substantiated, it would represent a dramatic fall from grace for Harry and Meghan, who could face charges of fraud and mismanagement in an American courtroom.
This situation could also further strain their already tenuous relationship with the British royal family. The timing of this debacle is particularly unfortunate, coming just months after the couple signed lucrative deals with Netflix and Spotify, valued at over $100 million. The stain of the missing Archewell donations threatens to damage their brand, business partnerships, and their aspirations of establishing themselves as global humanitarian leaders. The star power and public goodwill they have cultivated are at risk of being overshadowed by allegations of financial negligence and deception.
As for Meghan, questions are being raised about whether her royal title remains appropriate or if she retains the prestige of being a duchess while facing fraud accusations. Reports suggest that British tabloids are already publishing scathing headlines, with one even dubbing her "The Duchess of Deception." Clearly, this scandal has significantly tarnished her reputation on both sides of the Atlantic.
