Paris suburb-based Red Star FC are hoping to secure survival in the final quarter of the Ligue 2 season, in their first campaign in France’s second division for six years. The ownership situation of France’s fourth-oldest club has been in a state of limbo since the multi-club project of 777 Partners went bust last Summer following a major double-pledging fraud claim being brought against the owners of Standard Liege, Vasco da Gama, Genoa, Hertha Berlin and the prospective buyers of Premier League side Everton at the time. Since then, the remaining clubs of the former 777 Empire were placed under the control of insurers, A-CAP.
According to a report from Norwegian investigative outlet Josimar, A-CAP are now also the subject of legal proceedings from US regulatory bodies – which could see the clubs formerly owned by 777 under control of authorities from states such as Utah and South Carolina.
A legal petition from the Utah Insurance Department has accused A-CAP CEO Kenneth King of “years-long history of self-dealing, conflicts of interest, and obfuscation,” being directly involved and activity facilitating 777 Partners’ activities on a huge scale. This is all the whilst reaping the benefits individually, with the petition accusing King of having taken a $3m bonus whilst several of his investments were floundering. It states that A-CAP employees have also “directly and improperly benefitted from those investments” via management fees, a Miami condo (as previously reported by Josimar) , mortgage loans and “compensation paid directly to A-CAP”
King has been accused of being the mastermind behind 777 Partners’ fraudulent activities. According to Josimar, the Utah petition looks set to be followed up by a petition from the South Carolina commissioner. If won, these two regulators will have effective control over the football clubs – not with a view to running them – but in order to recuperate money which is owed to their policy holders.
Red Star FC has been looking for a buyer for several months now. There have been various interested parties in the club, with the closest being Dallas-based property developer Todd Interests who entered into exclusivity with the club and development project of Stade Bauer last August. A deal didn’t emerge neither for the club nor development project, before Boston Celtics and Atalanta owner Steve Pagliuca entered exclusive talks to buy the club which didn’t reach any significant point of conclusion.
GFFN | George Boxall
