THE church which owns the former EMD cinema in Walthamstow has been accused of fraud and money laundering, according to reports.

The Universal Church of the Kingdom of God (UCKG), which purchased the Hoe Street building in 2003, is said to have been charged with siphoning off billions of pounds intended for charity in Brazil, where it was founded in 1977.

A report by Sao Paulo's public prosecutor, which follows a ten-year investigation, claims the church used donations from its largely impoverished followers to buy property, cars and jewellry, the Observer has reported.

Investigators allege UCKG leaders, including founder Bishop Edir Macedo, channelled money into overseas accounts and businesses before returning the funds to Brazil where it was invested for 'personal interest'.

Bishop Macedo hit back at the report, which was submitted to a judge on Monday, saying in a pamphlet the UCKG was 'fighting in a war' with its accusers.

The church has 20 branches in the UK and claims to have eight million followers around the world.

It hopes to gain permission to turn the former cinema into a church and 'help centre', a plan which has been met with fierce opposition from campaigners, who want to see the building re-opened as a cinema.