By Andrew Warshaw
June 30 – Carson Yeung, the Hong Kong-based boss of English Championship club Birmingham City, has appeared in court after being charged with money-laundering, throwing into question the credibility of English football’s so-called “fit and proper person” rules for foreign owners.
The charges relate to offences alleged to have occurred between 2001 and 2007 and involve $92.5 million (£57.7 million).
Yeung, who was released on bail today pending another hearing set for August 11, was reportedly arrested at his Hong Kong home.
He faces five criminal charges that carry a maximum penalty of 14 years in jail if found guilty.
Yeung bought a 29.9 per cent stake in Birmingham four years ago and took full control of the club midway through the 2009-2010 season in an £81 million (£51 million) takeover.
There was no indication at that time that he was in any way being trailed in his homeland but the case has highlighted growing concern over the increasing number of English clubs falling into the hands of overseas owners.
As well as being owner of Birmingham City, Yeong is also chairman of Birmingham International Holdings (BIH), the Hong Kong-listed company that owns the football club stake.
Its shares were suspended from trading earlier today.
Acting Birmingham City chairman Peter Pannu issued a statement saying he did not believe the investigation was in relation to anything to do with the club’s activities.
“I have also been informed by [BIH lawyers] that Carson is assisting with enquiries that have nothing to do with the operation of BIHL in Hong Kong and therefore nothing to do with the operation of the club, and relate to other matters,” said Pannu.
“The law says a person is presumed innocent until proved guilty.
“Until I find out more information about this matter there is no further comment to be made.”
According to the prosecution in Hong Kong, “forensic accounting” found “hallmarks of money laundering” regarding the flow of money in five bank accounts held by Yeung and his father between 2001 and 2007.
The charges were for “dealing with property known or believed to represent proceeds of indictable offence”.
Yeung’s arrest follows an up-and-down season for Birmingham whose immediate future must now be in serious doubt.
The club won their first trophy since 1963, the League Cup, but were then relegated from the Premier League before manager Alex McLeish (pictured above with Yeung) quit to join local rivals Aston Villa, replaced by Chris Hughton.
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