Premier League: Newcastle, West Ham United Raided In Tax Fraud Investigation, Newcastle Official Arrested

Her Majesty’s Revenue and Customs (HMRC) raided both Newcastle and West Ham United’s premises early Wednesday as part of an investigation into fraudulent transfer activity.

Newcastle, West Ham raided in tax probe, officials arrested

As part of the probe, HMRC also arrested Newcastle’s managing director Lee Charnley among other “several men within professional football.” Charnley was released without charge.

HMRC deployed 180 officers across the United Kingdom and France to carry out the investigation, which is into a suspected income tax and National Insurance fraud estimated to total approximately £5 million ($6.42 million), and added it searched and seized business records, financial records, computers and cellphones.

Here is the full statement HMRC released regarding the probe:

West Ham’s London Olympic Stadium and Newcastle’s St James’ Park were among the sites raided.

HMRC also reportedly asked Chelsea FC for information “in connection with its wider investigation,” according to a club spokesman.

However, the London-based Premier League team’s grounds were not raided and no arrests were made.

“HMRC has requested certain information which the club will provide,” the spokesman said.

Newcastle United, meanwhile, stated “a member of its staff has been assisting HMRC with their inquiries” but said it would be making “no further comment at this time”.

West Ham issued a statement saying the club is “cooperating fully with HMRC to assist their inquiries,” although none of their officials had been arrested.

Newcastle was promoted to the Premier League on Monday, only 348 days after relegation.

According to its 2015-16 accounts, the team had a turnover of £126 million, ($162 million) paid out £75 million ($96 million) in players’ wages and recorded pre-tax loss of £4.1 million ($5.27 million)

HMRC raided West Ham’s offices at the London Olympic Stadium where the club moved in August, having played at Upton Park since 1904.

Companies House figures for 2015-16 show it turned over £142 million ($182 million), paid out £85 million ($109 million) in player’s wages and made a pre-tax loss of £4.8m ($6.17 million).

The Public Accounts Committee emphasized specific concerns regarding tax evasion in the soccer industry and the “misuse” of image rights to lower tax liabilities.

NEWCASTLE UPON TYNE, ENGLAND – APRIL 24: Christian Atsu, Ayoze Perez and DeAndre Yedlin of Newcastle United celebrate victory and promotion after the Sky Bet Championship match between Newcastle United and Preston North End at St James’ Park on April 24, 2017 in Newcastle upon Tyne, England. Newcastle United are promoted back to the Premier League following their 4-1 win. (Photo by Stu Forster/Getty Images)

Article by Pablo Mena