Source: Daily_Mail
Bungs probe shock: Hull court battle lifts lid on 'deals' by ex-chairman
In the dock: Duffen has been accused by Hull of taking bungs[LNB]Hull City have accused former chairman and chief executive Paul Duffen of accepting payments from agents for work carried out at the crisis-hit club in what could prove to be the biggest bungs scandal in football since the George Graham affair.[LNB] Hull were given the rare support of a High Court judge in being granted a freezing order on Duffen's assets as they launched a full investigation into his financial affairs.[LNB] Duffen's computer files will be seized along with other information that is being gathered by Hull's legal team at specialist litigation firm Stewarts Law. Leading the team is partner Clive Zietman, who led the Guinness and Robert Maxwell fraud litigation claims.[LNB] Duffen, who was in charge at the KC Stadium from June 2007 until his departure amid concerns about the club's finances in October 2009, has also been accused of spending company money for his personal use.[LNB] But potentially far more serious are the allegations that have been made about agents by a club facing worrying financial difficulties should they fail to avoid relegation from the Barclays Premier League this season.[LNB] At the centre of the investigation is a company based in Guernsey, but registered in the Bahamas, called Reef Securities Limited. Duffen is not listed as a director of the company, which is named in the High Court papers as the second defendant after Duffen, but he is understood to have close links with Reef. [LNB]In January last year, Duffen gave an interview in the Yorkshire Post and was happy to be associated with Reef. The article said: 'Businessman Paul Duffen is investing £250,000 in Pro-Cure Therapeutics with colleague Steven Smith through their investment company Reef Securities.'[LNB] Duffen is then quoted, saying: 'I look at a lot of businesses as potential investment opportunities.'[LNB] Hull issued legal proceedings against Duffen and Reef in the High Court on January 15 and Sportsmail obtained a copy of Claim form HC1OCOO129 after yesterday's preliminary hearing. At the hearing, orders for disclosure and charges over a property were agreed.[LNB] Shock: George Graham was found guilty by a FA inquiry of receiving money from agent Rune Hauge as part of a transfer deal[LNB] The claim form reads: 'The claimants allege that in breach of his (Duffen's) employment contracts and fiduciary duties to them as agent and director, certain monies were paid by third party football agents to the second defendant (Reef), on the first defendant's behalf (Duffen), in return for which the first defendant (Duffen) procured that the contract with the agents for business.'[LNB] It also alleges that Duffen was 'very frequently absent' from his office and alleges further that he 'used their monies for his own personal expenditure'.[LNB] As Sportsmail revealed in October, Adam Pearson launched an investigation into Hull's transfer business during Duffen's tenure the moment he returned to the club as chief executive. Pearson was alarmed to discover that around £5million had either been paid, or was due, to agents while Duffen was in charge.[LNB]Hull's legal team do not yet know how much money has in turn be paid to Reef but there is a belief that is could run into six or even seven figures.[LNB] The investigation could also have serious implications for the agents concerned. In a statement issued yesterday, Hull said: 'The company believes that Mr Duffen has acted in breach of his employment contracts and fiduciary duties as a director, through the use of company monies for his own personal expenditure and other wrongdoings.[LNB] 'The company also believes that he has acted in breach of his employment contracts and fiduciary duties as a director, through the payment of certain monies by third party football agents to Mr Duffen's services company, in return for which Mr Duffen procured that Hull City contract with the agents for business.[LNB] 'Consequently, on 15 January last, the company successfully sought and obtained a High Court order freezing Mr Duffen's assets.[LNB] 'The company also wishes to clarify that, contrary to a tabloid newspaper article, Mr Duffen has not issued any legal proceedings against the company and Hull City does not believe he has any basis whatsoever for doing so.'[LNB] Through his barrister, Lexa Hilliard QC, Duffen denied the allegations yesterday. Miss Hilliard told Mrs Justice Proudman that although Mr Duffen had consented to the orders, 'this was not to be taken as an admission by my client of any of the allegations against him'.[LNB] The order freezing Duffen's assets was lifted and substituted with an order to value and place a charge on a property. Duffen also agreed to hand over computer files.[LNB] In 1995, Graham was found guilty by a FA inquiry of receiving money from agent Rune Hauge as part of a transfer deal.[LNB] Hull high jump: Former chairman Duffen facing court action over debt-hit CityManchester City will replace United as the biggest club in the world, claims Garry Cook Robinho will have to hang his designer suit on a old, wire hanger: City's pampered stars are set for a shock at ageing Glanford Park[LNB][LNB] [LNB]
