Often Partisan

BIH Files Further Accusations Against Carson in Court

In a chambers hearing in the High Court of Hong Kong today, counsel for Birmingham International Holdings gave further details as to the accusations being made against Carson Yeung in a HK$120million writ (approx GBP10m) being filed against the former BIH Chairman.

Oriental Daily reports that BIH suspected misappropration of money across Carson’s reign for a various amount of different things including IT expenses, bodyguard expenses and entertainment bills. There was also money withdrawn from BIH “for contacting potential investors”, and more disturbingly withdrawn in the form of cash checks for Carson’s usage.

It must be stressed again that this money was from Birmingham International Holdings, NOT BCFC.

There is no current further date when the full hearing for the case will be heard; I would think Carson will now be given some time – maybe as much as a couple of months – to formulate his defence before the writ is heard in court.

NB Please read before commenting – libel laws are very stringent and are not to be trifled with. Using the word “allegedly” doesn’t protect you from libel laws; neither does saying “this comment has no connection to OP”. Please refrain from making comments that may be legally challenging as I will summarily delete them.

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54 Responses to “BIH Files Further Accusations Against Carson in Court”

  • Warwick Waiverer says:

    It is clear that Ernst + Young are conducting a forensic examination of what accounts are available and possibly those that have so far been successfully hidden or been less than transparent.

    In the long term that can only be good for the football club and expedite a resolution that hopefully delivers the best in terms of new owners and the possibility to recoup any ill gotten or illegal gains from any individual or group who have not acted with due diligence and honesty.

    In E + Y we have to place our trust!

    • Andrew says:

      E & Y are a business that is looking to perform a professional investigation to hopefully get the holding company (their clients) back to a soundly run profitable state, if that be in the form of new owners so be it. But I’m sure they don’t have the best interests of supporters of bcfc at the front of their thoughts.

      • almajir says:

        Absolutely correct

        • BhamCityJulian says:

          BIH surely realise that BCFC must be developed as opposed to just ticking over to prevent BIH losing value. This is what Panos and Gary are doing using the TTA credit facility.

          Between the four parties I think they’re don’t believe on the balance of probabilities that promotion can be bought, notwithstanding whether £13m is enough to buy it, because it cant guarantee you X points AND is cant guarantee you that X points will get you a top two position.

    • Des says:

      I really did hope that E&Y would have found something better than this £10 mill? CY will of course defend every point and just like PP1`s claims, it will be nigh on impossible to prove whether they were or were not appropriate.
      Another million pound court case on its way in HK, its on days like this I wish I`d studied law rather than becoming a removal man LOL

      KRO

  • Andrew says:

    This is looking very perilous for our oriental owner. Surely this will make him crack sooner rather than later and give him no option but to sell up. This guy is out on bail and still his silence is defening. Panuu seems quiet as well. Maybe they know but can’t say.

    • chris says:

      to be pedantic, he has never been our owner he has only ever been the major shareholder and maybe at one point the majority shareholder, Dan would know that one.
      he also doesn’t have to sell up for the club or BIHL to be sold etc as he doesn’t yet have a majority shareholding so can be out voted by the other shareholders.

      • Andrew says:

        If you are indeed a shareholder then I do believe you own whatever those shares relate to. Also he was installed as chairman once so if any one person you could point to had ownership I’d defiantly give him credit for that. Like my house is mortgaged I wouldn’t say the bank own it do I. I’d like to say that I own it even though I have to repay the loan I’m still listed on said deeds. I don’t know the ins and outs of how his shareholding works as I’m not familiar with it and don’t care to know but I’m pretty sure it’s not quite as simple as you put it or why has it been so difficult to sell the club in recent times? It’s not pedantic it’s just plain being awkward.

  • blueb says:

    OP, In relation to this – given PP1 was with BIH also is there any mention of him with regards to the article in Oriental Daily

    • almajir says:

      None (you can click it and see for yourself). This is because the case is against Carson/Amazing Top International Enterprises (which is Pannu’s BVI vehicle), not Pannu himself.

      • swissjonny says:

        Interesting point Daniel.Will can verify this but even if a company has nominee Directors if they have a 100 per cent holding or a v substantial holding unless they are very careful they could be alleged or nay be proven to be shadow directors and are therefore right back in the shitty end of the hunter hunted equation.A broad brush non specific point -question,

  • Richard Granfield says:

    DAN……You stress that the alleged misappropriated money was from BIHL not BCFC, but are they not, de facto, the same?
    After all the parachute payments and player sales since 2011 the club can just about scrape up a few hundred thousand quid for Brock-Madsen!

    • almajir says:

      No. They. Are. Not.

      If I have said they are separate entities, I mean they are separate entities….

      As for your insinuation – if you read the accounts, as I have said ad nauseum for many, many years – the chief drain of finances on BCFC is PLAYER SALARIES. When BCFC are paying between 95% and 100% of its turnover to its players and there is no investment coming into top it up, that’s why the club has no money.

      • swissjonny says:

        Interesting to see a cost benefit analysis on the costs of players-managers and any relevant consultancy agreements etc.

  • Ginger says:

    I’ve said all along that E&Y are doing everything by the book to clear a viable pathway for the prospective new owners of BIHL/BCFC. It takes time, be patient. Who knows eventually Mr Yeung may like to make a deal for the sale of his shares. Shall we say all of these allegations must be very draining.

  • ChrisG says:

    Just as a matter of interest, E&Y have been doing a great job sorting out the financial problems at BIH for quite sometime now, but where does the money come from to pay them?.

  • Adam True Blue says:

    I expect E&Y are not ultimately trying to recover £10 mil from CY and associates, but hoping that by turning the screws and applying a little more pressure will force their hands into hopefully an earlier settlement, which can only be better all round. I just hope that any new owners will appreciate the sterling hard work that has been performed by the back ground staff and management at BCFC, whom have managed under adversity to restore to us a little pride.

  • Tony E says:

    Thanks again for the update. Should E & Y’s allegations hold sway with the court would CY be facing any more legal charges or will it just be a wrap accross the knuckles. Also if proven would he ever be allowed to hold a position of power/directorship of any Hong Kong companies in the near future or would he faced being banned?

  • Sean says:

    If I’m ever sued for libel by Yeung I want E and Y to represent me!!!

  • duchess says:

    even though this is awesome work as usual Dan, and I mean this in the best possible way, I am now not concentrating on this saga every day and once again taking in pride in the Club and Players…

    after all is said and done, E&Y seem to be handling it with trust and if we won our game in hand we would be second in the Championship!

    I genuinely believe we can achieve promotion this season, because all you need is the right manager and a group of players that work, money does not even come into it!

    The next two years will see the defining next chapter in this so called ‘sleeping giant’ and it may have been stirring a few years back and the 6-7 years beforehand but it was never truly woken.

    The Premier League and investors who care, not necessarily the richest, may well be around the corner!

    • chris says:

      their not round the corner they are here (TTA) and they have secured the ground subject to the deal being completed or they pull out.

    • BhamCityJulian says:

      I could see us making the playoffs but without another specialist centre half and two new full back (stronger defensively and more supportive of their winger) we won’t get automatic

  • Tony says:

    Just amazed at the stamina being shown by Carson, you would think by now he would just want to sell up and get out.
    Its one thing after another it must be draining, surely he must see there is now no hope.

  • Disgruntled says:

    This latest move is part of turning the screw on Carson Yeung. These allegations are being made as part of civil proceedings against a former director/employee of BIHL. If E&Y believe there has been criminal intent to the alleged misappropriation of funds from BIHL they will have the option to inform the police. So, should CY be minded to become a little more co-operative in the (formal or informal) mediation process, linked with these civil proceedings, then it is possible the allegations may be a “misunderstanding”, not in any way criminal.

    It is possible BHIL may have carried fidelity insurance, covering losses arising from events such as these allegations. In which case, the insurance company, before paying out, would expect the insured (BIHL) to attempt to recover the money from the perpetrator of the misdeeds leading to those looses..

  • Jimbo says:

    You can’t use with all due respect either:

  • zxcv says:

    To many people are assuming that Carson has a say in all of this, what if he has not been given the opportunity to do a so called deal. How about if E&Y Think they can (along with the courts) sell BIHL in the interest of all Share holders if these charges are proven. Who knows maybe they think he should not get a pay off for example.

    • Adam True Blue says:

      I like your thinking, but I don’t think we could be that lucky, thats if luck has a part to play. I personally just want an end to this saga with new owners that care about the football more than their pockets and will give full backing to the current staff, perhaps I want too much. kro

  • Art says:

    Why has’nt CY been arrested?

    Surely this would be a criminal offence?

    • almajir says:

      It’s not quite as simple as that – it’s difficult for civil cases to cross into criminal ones from what I know.

    • zxcv says:

      E&Y can still bring him to court as in a personal prosecution. thus allowing them to request the court to take specific action that the police may not ask for.

  • Big Al says:

    See that disclaimer you often use about not being a legal or accountancy expert. I wonder when this process is finally over whether that will still ring true!

  • Euston 9:18 says:

    Shame the cockney mob didn’t use E&Y when they dribbled out the “we will only sell to a person who will take BLUES forward”
    That didn’t trust carson from the off if you remember they refused him to join the board.
    Then all of a sudden £80 MILLION turns up & shock horror carson is kosher.
    The bitch & the midget laugh all the way to the bank & the golds.
    Now the tax payers of this country have built them a new ground & they pocket the dough selling up’shit park.

    • chris says:

      don’t think they will pocket the cash but it will for sure pay off a substantial part of wet spams debts, which then increases the worth of the club so when they sell they will make another major profit.
      they always make money unlike many club owners who are in it for the fun or love of a club, like the late Jack Hayward at Wolves.

      • swissjonny says:

        Yes and the Coombes family at our place.Gold and co did well by us.They took us out of some very dark Kumar and Wheldon days.

        • Shirley Blue says:

          Can’t argue with that and they gave us some fabulous times but it would be interesting to know how much they really knew about CY when they sold the club to him. Sullivan, Gold and Brady became household names during their tenure with us rather that just being well known in the soft porn industry. Brady certainly has made a fortune off the back of that publicity. They had a moral duty not to sell the club to a crook.

        • AussieBlue says:

          I’ll step into defend the Brady/Gold/Sullivan era too. While I could never warm to Sullivan as a person; the triumvirate (actually a quadrumvirate with Ralph G) made all the right plays for BCFC as a business. You can’t expect soft namby-pamby tree huggers in business; they have to make hard calls sometimes. I think, while they owned us, they did form emotional ties too but these were subservient to the fundamental business rules. As for selling out to Grandtop et al: show me anyone who wouldn’t take 80 million for a 700,000 pound investment and I’ll show you Mother Theresa and Gandhi genetically combined. They did well by us and they did well out of us…end of.

    • BhamCityJulian says:

      The reason he didn’t get a position on the board could have been because as a member he would have got access to otherwise confidential information and a vote

  • ian ambrose says:

    If Carson fail hearing from court in Hong Kong, He will be extra in prison another years???… Ernst + Young both good work hard at BCFC and BHIL….. Am confuse and don’t understand where they 7 bidder takeover at BCFC none hearing then???… Brilliant blues manager name is Gary Rowett and clever good business with BCFC is good future bring lots of blues fan and hope so play off or stay up back to primers league 2016 !!!

    • almajir says:

      Ian – this is a civil case and has nothing to do with his criminal case.

    • Adam True Blue says:

      I think we will find in the long run that TTA have just been setup to prise Bihl from the clammy little mits of CY by providing short term investment to keep things running and then a much reduced settlement figure, Bcfc will then be back on the market and offered to the previous 7 bidders and any other interested parties and for this TTA will make a nice little profit and we will have new owners.

  • BhamCityJulian says:

    Ian, the other bidders are ‘locked out’

  • Dave Mann says:

    Shane Lowry signed till end of the season .. Saw him at Kidderminster and I thought he done well and scored the equaliser .. I know it’s a friendly but let’s pass judgement when he plays for us in a competetive match , he’s a centre half and he will certainly be up for the vile clash so let’s see what he can do , still only 26! Kro


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