Watford under investigation by Football League over fabricated HSBC letter and could face fine or points deduction
The English Football League (EFL) are investigating Watford for allegedly supplying forged financial information to the governing body.
EFL officials were contacted by the Daily Telegraph who claim to have a fabricated bank letter from HSBC that was sent to the EFL as proof that Gino Pozzo had enough funds to become the club's principal owner when he completed a takeover from father Giampaolo ahead of the 2014/15 season.
Watford won promotion into the Premier League that season but could now be handed a points deduction or large fine should the EFL find the allegations to be true.
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"We can confirm, following receipt of information from the Daily Telegraph, that we immediately commenced a disciplinary investigation into serious allegations made against Watford Football Club," said an EFL spokesman.
"The club has been formally contacted by the EFL and is now required to provide a full and detailed response to the allegations. Once that response is received, it will be fully considered by the EFL and appropriate action will be taken under our rules and regulations. We will not be making any further comment until we are in receipt of the club's response."
Watford, who are undertaking two internal investigations, have until next week to respond to the allegations.
The Telegraph report that a letter from "HSBC Premier" – an arm of the bank that does not actually deal with corporate accounts – stated that Gino Pozzo's holding company Hornets Investments Limited, had sufficient funds to be issued a bank guarantee of £7m.
There is no suggestion that Pozzo himself was aware of the letter.