The charges relate to the activities of GVC, now called Entain, between 2011 and 2018 in Turkey.
The UK Crown Prosecution Service (CPS) has charged former GVC Holdings CEO Kenny Alexander with conspiracy to defraud and conspiracy to bribe, amid an investigation into the provision of gambling services in Turkey.
Alexander and 10 others, including former GVC chairman Lee Feldman, have been charged with offences between 2011 and 2018, ranging from conspiracy to defraud and fraudulent evasion of income tax.
Additionally, Robert Hoskin, Entain’s chief governance officer between 2020 and 2023, has been charged with perverting the course of justice in February 2024.
The charges were announced on Thursday by the CPS and relate to the historic activities of GVC, now called Entain, in Turkey between 2011 and 2018.
In November 2023, Entain announced it had reached a deferred prosecution agreement with the CPS, in which it would pay a financial penalty of £585 million ($790.6 million) after an investigation by the HMRC.
In the CPS’ statement, HMRC’s director of its fraud investigation service Richard Las said it has been a “complex and international investigation”.
“These are serious charges that relate to conspiracy to defraud, bribery, cheating the public revenue, evasion of income tax and perverting the course of justice among others,” Las said.
Who else has been charged?
Those charged with conspiracy to defraud and conspiracy to bribe include Richard Cooper, GVC’s CFO until 2016, and the company’s former group director of trading, James Humberstone.
Scott Masterston faces the same two charges, along with counts of fraudulent trading, cheating the public revenue, and acting as a company director while an undischarged bankrupt. Masterton is director of e-Technologies Global, which is currently in the process of liquidation.
Payments provider Ilixium has also been drawn into the case. Its co-founder and CEO, Richard Raubitscheck-Smith, is accused of both conspiracy offences, while Raubitscheck-Smith’s fellow co-founder and director Alexander MacAngus faces a single charge of conspiracy to defraud.
Also charged with conspiracy to defraud and conspiracy to bribe are Conexus director Robert Dowling, Inteliqo Limited’s financial director Raymond Smart and Caroline Patricia Roe, who is listed as a director of Loki Europe, Harliboo Limited and Valhalo.
Roe also faces additional charges of fraudulent trading and fraudulent evasion of income tax.
Entain’s historic activities in Turkey
In July 2019, GVC denied media reports it was continuing to profit from its former Turkey-facing subsidiary Headlong Limited, which it owned between 2011 and 2017.
GVC claimed all ties were severed when it divested the business in November 2017, selling the business to Ropso Malta Limited for a performance-related earn-out of up to €150 million ($175 million).
Nonetheless, HMRC sought additional information from GVC, before widening its investigation so that it covered “potential corporate offending” in 2020.
Following its rebrand to Entain, the company then conceded there may have been historical misconduct involving former third-party suppliers and group employees.
In December 2023, Entain received approval for its £585 million financial penalty for its historical activities in Turkey, with the penalty relating to alleged offences under Section 7 of the Bribery Act.
Alongside the financial penalty, Entain also agreed to make a charitable donation of £20 million, while also contributing £10 million to CPS and HMRC costs.
Just days after the agreement with the CPS was approved, Entain CEO Jette Nygaard-Andersen resigned from her role with immediate effect, although her departure was unrelated to the financial penalty.
Conspiracy charges carry maximum 10-year terms
The maximum penalty for both the charges of conspiracy to defraud and conspiracy to bribe is 10 years and/or an unlimited fine.
In February, the Financial Times reported both Alexander and former GVC chairman Feldman had launched legal action against Entain, as well as the law firm Addleshaw Goddard, which represented the company in the Turkey case.
According to the Financial Times, Alexander and Feldman were suing Entain and Addleshaw Goddard for sharing “privileged information” with investigators.
In a March interview with BettingJobs, Alexander stated he would not return to the gambling sector after 24 years in the sector.