Newcastle Facing Tax Fraud Investigation Over £500m Worth of Transfers
Newcastle United are facing a major investigation into possible tax fraud which is suspected to have taken place during some of their transfer dealings, according to The Daily Mirror.
Transfer deals between 2011 and 2013 adding up to around £500m are said to be under scrutiny, which include deals for Demba Ba, Pappis Demba Cisse and Moussa Sissoko. It is thought that tax evasion took place in many more transfers that the club were involved in and it could become one of the biggest tax evasion inquests in English football history.
Two officials that face intense scrutiny are Derek Llambias and Lee Charnley, who were managing director and football secretary at the time of the transfers respectively. Tax officer Lee Griffiths was heavily critical of Charnley, saying: “Mr Charnley had demonstrated his lack of honesty by misleading the FA officials who had interviewed him.”
Charnley was arrested on fraud charges in April after his home was seized, but later released without charge.
The case all started when agent Stan Stainrod had files seized relating to a suspicious £1.9m he received as part of Demba Ba’s 2013 move to Chelsea from the Magpies, a deal said to be worth around £7m.
The document then shows that £136,000 was handed out to other agents and a company associated with the player. The investigation, named ‘Operation Loom’, is going well according to HMRC but a resolution to the investigation may have to wait until sometime next year.
