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A new Ponzi scheme lawsuit in New York could prevent an American investment firm from taking over a storied English soccer team halfway across the globe. American firms have been buying up foreign soccer teams at a stunning pace, with about 50% of all English Premier League (EPL) clubs now owned at least in part by US investors. The EPL is an incredibly profitable sports league, raking in billions of dollars each year – but these profits could be out of reach for firms that fail to address legal issues back home.
Investment Firm Accused of Fraud Before Planned Takeover of Everton
In May of 2024, the New York Times reported that a major investment firm in the United States was faltering on the eve of an English soccer club takeover due to a fraud lawsuit on home soil. The club in question is none other than Everton, one of the biggest teams in the English Premier League. The club usually finishes around the middle of the table, but new investment could propel it to unheard-of heights.
But there’s only one problem: The investment firm that wants to purchase the club is facing a major fraud lawsuit in a federal New York court. The plaintiff is a lender based out of London, England, and it is accusing the defendant of essentially running a Ponzi scheme.
This lender claims to have provided the firm with $600 million in financing secured by $350 million in collateral assets. However, they claim to have subsequently discovered that this collateral had already been pledged to other lenders. Some of the assets were not even controlled by the firm. As a result of this discovery, the London-based lender is making some bold claims.
Specifically, they accuse the firm’s owners of running a “giant shell game at best, and an outright Ponzi scheme at worst.” They compared the business to a game of “whack-a-mole” that keeps creditors at bay “only temporarily” by “shuffling” money around to various “alter egos” to “disguise their true financial condition.”
Dozens of other companies have sued this firm for various reasons. In response, its owners have referred to the discrepancies as “embarrassing mistakes.” Aside from the reputational impact, these legal issues have caused the Everton deal to stall. The majority owner of the club is now reportedly seeking alternative buyers. If the firm resolves its New York fraud lawsuit, however, it could return to the negotiation table and purchase the club as planned.
Contact a Fraud Defense Lawyer in New York
If your company has been accused of running a Ponzi scheme or any other fraud-related offense, work with The Glassman Law Group. With our experienced fraud defense lawyers in New York, you can push back against needless, frivolous lawsuits and continue with unhindered business operations. Lawsuits do not necessarily need to slow down your expansion plans. Reach out today to get started with an action plan.
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