English, French soccer clubs raided in tax fraud inquiry

Two major English soccer clubs were raided by dozens of officers investigating tax fraud related to transfer fees on Wednesday. French clubs were also raided in a coordinated operation.

Officers of the British tax authority (Her Majesty's Revenue and Customs or HMRC) arrested several men at properties of West Ham United in London and Newcastle United in the northeast. They also took away records, computers and other business equipment.

HMRC and French police also raided undisclosed sites in France and made more arrests.

A spokesman for the HMRC said it had arrested several men working within the professional football industry for a suspected income tax and national insurance fraud.

"180 HMRC officers have been deployed across the UK and France today. Investigators have searched a number of premises in the North East and South East of England and arrested the men and also seized business records, financial records, computers and mobile phones.

"The French authorities are assisting the UK investigation, have made arrests and several locations have been searched in France," HMRC said in a statement.

British media said that Lee Charnley, the managing director of Newcastle United, which this week secured promotion to the English Premier League, was among the people arrested.

Both clubs said they were co-operating with HMRC but would give no further details.

British media speculated that the arrests and investigation were linked to the financial arrangements of transfer deals. Newcastle in particular has bought several French players in recent years.