Financial News

  • 4 March 2014, 9:02

Birmingham Owner Guilty Of Money Laundering

The owner of Birmingham City Football Club, Carson Yeung, has been convicted of money laundering charges in his native Hong Kong.

The 54-year old barber-turned-businessman had resigned from the parent company that owns the Championship side last month ahead of the verdict at the Hong Kong District Court.

He was found guilty of charges relating to his handling of $93m (£56m), described as criminal proceeds by prosecutors, using five bank accounts between January 2001 and December 2007.

Yeung had denied any wrongdoing.

Delivering his judgement, District Court Judge Douglas Yau said Yeung had lied about how he made his money and exaggerated the amount of profit generated by his hair salon business.

"I find the defendant not a witness of truth. I find that he is someone who is prepared to, and did try to, lie whenever he saw the need to do so," the judge said.

Yeung, who was dressed in a dark suit and striped tie, will be sentenced on Friday morning.

The trial revealed the flamboyant businessman's close ties to Macau's casino world, both as an investor and gambler, and how that facilitated business investments that helped him amass his wealth.

The charges were unrelated to Birmingham City, which he bought in 2009 for £81.5m.

The club won the 2011 League Cup, ending 48 years without a major trophy, but despite the victory was relegated from the Premier League the same year.

Following Yeung's resignation from parent company Birmingham International Holdings last month, the company sold a 12% share in its UK subsidiary to a little-known Chinese advertising firm.

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