Eleven individuals, including ex-GVC CEO Kenny Alexander, have been indicted in connection with a bribery scandal in Turkey.
In a significant turn of events, the UK Crown Prosecution Service (CPS) has brought charges against Kenny Alexander, the former CEO of GVC Holdings (now Entain), and several other individuals. The investigation, considered complex and international, is being led by HM Revenue and Customs (HMRC) and the CPS.
The charges against Alexander and the other defendants, which include conspiracy to defraud and conspiracy to bribe, stem from GVC's ownership of a Turkish-facing subsidiary, Headlong Limited, during the period from 2011 to 2018. Investigations have shown possible wrongdoing by both company insiders and outside partners during this time.
The alleged bribery and fraud occurred during GVC's Turkish operations. Other former high-ranking GVC officials, including Lee Feldman (former chairman), Richard Cooper (ex-chief financial officer), James Humberstone (former trading director), and Scott Masterston (e-Technologies Global director), have also been charged with similar offenses.
Robert Hoskin, former Entain's chief governance officer, is charged with perverting the course of justice in early 2024. The case involves other individuals, including directors and finance people linked to outside suppliers like Conexus, Inteliqo, and Ilixium. Some of these individuals are accused of shady business deals, dodging income tax, and running companies when they were not supposed to due to financial instability.
Entain does not face new charges, but had struck a deferred prosecution deal in 2023, agreeing to pay GBP 585 million ($788.3 million) in fines, plus GBP 30 million ($40.4 million) for charity and legal fees. The high-profile lawsuit is likely to grab attention from both the gambling sector and regulatory agencies across the globe as it progresses through the courts this fall.
The first court hearing for Alexander and the other defendants will take place on October 6 at Westminster Magistrates' Court. If found guilty, the accused could face heavy punishments, including jail time up to 10 years and unlimited fines.
This development adds to a rocky time for Entain, as the company has also dealt with shareholders asking questions, changes in leadership, and lawsuits from Kenny Alexander and Lee Feldman. The investigation into GVC's bribery and fraud allegations is considered complex and international by HMRC. Richard Las, the fraud investigation director at HMRC, has emphasized that the claims cover serious crimes such as fraud, bribery, tax evasion, and attempts to obstruct justice.
