Friday 6th March, 2015

A former financial officer at Birmingham International Holdings (the Hong Kong listed parent company of Birmingham City FC), has been arrested on suspicion of stealing around £2.5m.

Jerry Ko was arrested by Hong Kong police but released on bail pending further investigation.

Ko, a certified public accountant, was hired by the company in July 2013 and was responsible for the financial reporting function of the Group, including compliance with the relevant financial reporting and disclosure requirements.

The alleged misconduct began in December 2013 and the parent company fell into receivership just one month after the alleged fraud took place.

The company's board has announed that it "will consider setting up an investigation committee to look into the suspected misappropriation and see how to improve the internal control system of the company."

But troubles at the company don't end there. South China Morning Post reports that disgraced former Birmingham owner (and still its biggest shareholder), Carson Yeung has announced to the Stock Exchange that he and another large shareholder are seeking to replace three senior executives with individuals close to him, including his former bodyguard and his common-law partner.

Yeung is serving a six-year sentence in Stanley Prison for laundering HK$721 million.