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Fraud investigation at Mike Ashley's Sports Direct


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I didn't see this mentioned anywhere else so thought I'd create a thread about it.

 

Fraud investigation at Mike Ashley's Sports Direct

 

MIKE Ashley’s Sports Direct business was today named at the centre of a fraud investigation.

 

The Serious Fraud Office has launched an investigation into suspected price fixing and alleged fraud at Sports Direct and JJB.

 

The Newcastle United owner’s business is under the spotlight after the Office of Fair Trading referred the case to the SFO.

 

It follows more than six months of secret examinations by the OFT into the two sport empires.

 

In a statement today, the SFO said: "The Serious Fraud Office can confirm that it is investigating the activities of JJB PLC and Sports Direct International PLC.

 

"The investigation is in to suspected offences under the Fraud Act and the Enterprise Act. This investigation follows a referral by the Office of Fair Trading."

 

A statement by the OFT said: "The OFT has today executed entry warrants at two addresses as part of an investigation into alleged anti-competitive conduct in the sports goods retail sector.

 

"The investigation is being carried out under the Competition Act 1998 and relates to alleged breaches of EC and UK competition law.

 

"The OFT will not be in a position to conclude whether it considers the law has been infringed until it has completed its investigation and assessed the available evidence. The OFT’s investigation is at an early stage."

 

JJB Sports, which said the investigation could take "a number of years", was granted a marker by the OFT in August giving it full immunity from any financial penalties of up to 10% of turnover.

 

In return for the immunity, JJB must co-operate fully with the OFT, withdraw from any further participation in the alleged cartel, and pledge not to act in bad faith.

 

The company, whose shares fell 10%, said it could be liable for third party damages despite the wider immunity, although the financial impact of such claims is likely to be low.

 

The competition inquiry puts JJB back in the spotlight less than six months after the company managed to stave off administration with a last-minute rescue deal.

 

Chris Ronnie bought founder Dave Whelan’s stake in the Wigan-based retailer in 2007 with Icelandic investor Exista but used the shares as security against the £190m loan from Icelandic bank Kaupthing for the deal.

 

He was sacked as chief executive in March after it emerged his 27.5% stake in the business had been seized by administrators when the Icelandic bank collapsed.

 

Sports Direct later said it was assisting officials from the OFT and SFO at its head office in Shirebrook, Nottinghamshire, but made no further comment on the investigation.

 

It said: "Sports Direct’s philosophy is to promote competition in the sports and leisure market and its record demonstrates this."

 

http://www.chroniclelive.co.uk/nufc/newcastle-united-news/2009/09/10/fraud-investigation-at-mike-ashley-s-sports-direct-72703-24656297/

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Guest Roger Kint

Or offset the fine by putting us into administration

 

Yeah combat a monster fine with setting fire to a huge pile of money, that makes sense :facepalm: :idiot2:

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Don’t blame it on the sunshine

Don’t blame it on the moonlight

Don’t blame it on the good times

Blame it on the geordies.........

 

I just can’t, I just can’t

I just can’t control my finances

I just can’t, I just can’t (Yeah)

I just can’t (Woo) control my Derek Llambias

 

 

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This is why he wouldn't get rid of Barton. Needed a man on the inside the grease the wheels with the various gangs. Now he can just hook up with Joey's prison connects.

 

Can't wait to see Mike Ashley come out with the teardrop tattoo.

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  • 1 year later...

http://www.bbc.co.uk/news/business-11571944

Sports Direct and JJB Sports fraud probe is dropped

Tennis balls Sports Direct owns Dunlop, Slazenger and Lonsdale

 

The Serious Fraud Office's (SFO) investigation into Sport Direct and JJB Sport over an alleged cartel has been dropped with no charges brought.

 

The SFO had been investigating the two companies following a referral from the Office of Fair Trading.

 

However, the SFO will continue looking in to individuals' activities.

 

The initial move by the SFO came after JJB said it had blown the whistle on a suspected cartel in the sports retail market.

 

The case involves "suspected agreement or concerted practice to dampen competition in the sports retail market" during June 2007 to March 2009.

 

Sports Direct International's brands include Dunlop, Slazenger and Lonsdale.

 

It is controlled by Newcastle United owner Mike Ashley.

:facepalm:

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  • 6 months later...

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