Birmingham City Bosses Arrested in Fraud Inquiry

Karren Brady, the managing director of Birmingham City, and David Sullivan, the club's co-owner, were arrested yesterday on suspicion of conspiracy to defraud and false accounting by police investigating allegations of corruption in professional football.

Sources with knowledge of the investigation confirmed the pair were arrested. It is understood that they were detained at addresses away from the Premier League club's St Andrews stadium. They were released later without charge and no date was given for when they would return to answer bail. Seven other people have been arrested and bailed during the investigation including Portsmouth manager Harry Redknapp and Tottenham Hotspur full-back Pascal Chimbonda.

In a statement police said: "A 59-year-old man and a 39-year-old woman were today arrested on suspicion of conspiracy to defraud and false accounting, as part of the City of London police's ongoing investigation into football corruption.

"A total of seven other people remain on bail in connection with the investigation. If any of these individuals are released from bail or charged, details will be made public." Birmingham City said the club would not be making any comment.

The arrests came less than a month after police raided the club offices at St Andrews. Their inquiry is understood to center on the £300,000 transfer of Aliou Cissé from Birmingham to Portsmouth in August 2004. The deal was one of 17 highlighted by an inquiry into Premier League transfers led by Lord Stevens, the former Metropolitan police commissioner.

At the time, Stevens' Quest team were dissatisfied with the level of cooperation received from the agent, Willie McKay, who represented Portsmouth in the transaction. McKay is on police bail after being arrested as part of the same inquiry.

Brady was the first woman to be appointed to a boardroom post in English football in 1993. Married to footballer Paul Peschisolido, she is also on the board of Sport England.Sullivan made his money in adult entertainment, setting up a magazine business with David Gold, the co-owner of Birmingham City.

Yesterday's arrests follow that of a 61-year-old from Manchester last June and raids on Newcastle United, Rangers and Portsmouth a month later. Former Portsmouth chairman Milan Mandaric, managing director Peter Storrie, and former Newcastle and Portsmouth midfielder Amdy Faye were also detained on suspicion of conspiracy to defraud and false accounting.