AML / CFT: F1's banker arrested re alleged kickbacks
The ownership of Formula One's rights holder has been somewhat murky for some years. Although Bernie Ecclestone is widely touted as the owner, in fact he (indirectly) owns part of the company and there have been a succession of other owners. One of them was a German bank which sold its interest to a current owner. Unfortunately, someone, somewhere, appears to have trousered USD50 million.
Dr Gerhard Gribkowsky was a familiar figure on the Formula One circuit in 2005, mostly staying close to Bernie Ecclestone. As well he might for, as the representative of BayernLB (BLB) in its ownership of a large slug of Formula One's holding company SLEC, he was responsible for looking after the bank's investment.
MLB had bought out the interests of Morgan Stanley and Lehman Brothers.
When Gribowsky was interviewed by F1.Com (the official F1 website) in October 2005, he was asked whether there were any plans for BLB to "divest itself of its holding considering the non-traditional nature of this investment. " He replied that there were no current plans.
But it was another answer that should have raised eyebrows: asked what the bank's major shareholders thought of the bank's investment in F1, Gribkowsky said "this is an operational issue for the bank and not a matter for the bank's shareholders."
Just a few months later, BLB sold its stake to CVC Capital Partners, a private equity fund.
It's that sale that has led to Gribkowsky's arrest on charges that he negotiated a sale without obtaining a proper valuation of the asset, that he has received - via two fictitious consultancy contracts - a kickback (the allegations as to from whom has not been made public) of USD50 million and that he has evaded tax on that money plus breach of trust and corruption.
CVC has issued a statement saying that it has no knowledge of nor any involvement in the payment of any sum to Gribkowsky or anyone connected with him "in relation to CVC's acquisition of Formula One."
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