Birmingham City defends Brady over corruption probe

Karren Brady, the managing director of Championship side Birmingham City, denied any wrong doing on Wednesday after being re-arrested by police investigating allegations of corruption within English football.

Brady, 39, was questioned by officers from the City of London police on Tuesday, the lead force in dealing with sporting corruption inquiries, and released on bail.

Known as ‘the first lady of English football,’ Brady was first arrested in April along with City co-owner David Sullivan.

The pair were questioned on suspicion of conspiracy to defraud and false accounting.

A City of London Police spokeswoman said Tuesday: “A 39-year-old woman was today arrested on suspicion of a further offence as part of the ongoing football investigation.”

She said she could not provide details of the offence, adding: “We have been working with HM Revenue and Customs (HMRC — the tax department) from the outset of the investigation.

“The investigation has always focused on money laundering. The Fraud Prosecution Service has identified that tax offences may be involved.”

Birmingham City later issued a statement saying that Brady “has not been charged with anything and vehemently denies any wrongdoing”.

Tuesday’s arrest “relates to exactly the same two players that both David Sullivan and Karren Brady have already been arrested and questioned for, and it simply confirms that the police are alleging … (payroll) offences in relation to these two players”, the club said, without giving details.

It said it expected the investigation to prove that no offence had been committed by anyone at Birmingham City, but said it would continue to cooperate with police.

In November 2007, several high profile figures within English football were arrested as part of the police inquiry.

Among those still thought to remain on bail are former Portsmouth manager Harry Redknapp, now in charge at Tottenham Hotspur, Portsmouth chief executive Peter Storrie, former chairman Milan Mandaric, former player Amdy Faye and football agent Willie McKay.

Brady became Britain’s youngest football managing director when City became a public company in 1997.

Neither Midlands club Birmingham nor HMRC would comment Tuesday.

City are currently third in the Championship, just two points adrift of one of the two automatic promotion places to the lucrative Premier League.