Friday 22nd July 2011

Bernie Embroiled In Scandal Ahead Of German GP

Ecclestone admits to making £27m payout to German banker

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F1 supremo Bernie Ecclestone has admitted for the first time that he did pay former banker Gerhard Gribkowsky £27m following the sale of F1 five years ago.

Prosecutors in Germany have alleged that Ecclestone bribed Gribkowsky, who was overseeing the sale of German Bank BayernLB's stake in F1 to the sport's current commercial rights holders, CVC Capital Partners.

In return for a large payment to a family trust and £25.3m in commissions from the bank, Ecclestone is alleged to have paid Gribkowsky the £27m. Gribkowsky was formally charged this week with breach of trust, tax evasion and having been in receipt of corrupt payments from Ecclestone, while Ecclestone is still being investigated by the German authorities. For his part, Ecclestone has said he expects to be fully exonerated.

Ecclestone told the Daily Telegraph yesterday evening that he made the payment because the German banker "'threatened' to cause trouble for him with the Inland Revenue".

F1's chief executive did, however, stop short of actually accusing Gribkowsky of blackmail.

"Ecclestone claims that Gribkowsky made false allegations about his relationship with his offshore family trust, Bambino Holdings," reports the Telegraph, "adding that although he has 'never had anything to do with the trust in any shape or form, he [Gribkowsky] threatened that he was going to say that I was running it'".

Ecclestone also says he asked his lawyers at the time about Gribkowsky's 'threat'. "They said 'I tell you what would happen," Ecclestone told the Telegraph, "the Revenue would assess you and you would have to defend it, because you could defend it, and you would be three years in court and it would cost you a fortune. Better pay'."

[Oddball RS]

"Ecclestone told the Daily Telegraph yesterday evening that he made the payment because the German Banker "'threatened' to cause trouble for him with the Inland Revenue".


What do you mean Bernie, as in you might have to pay them something???

If only......eh?

[b14]

There is no way any legit lawyer would recommend their client pay what appears on the face of it to be a bribe to avoid investigation by the Inland Revenue....

[CocoUK]

I really hope that Bernie has many of his endeavors over the years scribbled down ready for a dynamite of a book… would make quite the read.

[silv]

Endeavors !! IMHO he is the biggest financial the UK has produced

CocoUK said:

I really hope that Bernie has many of his endeavors over the years scribbled down ready for a dynamite of a book… would make quite the read.

[Ollieb7]

Next he will have had something to do with the phone tap scandal...

[Maxus]

"........Bambino Holdings" Funny man.

I'm in the middle of reading the No Angels book about him. he is made out to be a bit sharp in there. In dealings with him the jist is concentrate on what he doesn't say rather than what he does
Example:
BE - I want to introduce refuelling to F1
Teams - The fueling rigs are too expensive
BE - I will supply the rigs
Teams - OK, fair enough

Fueling rigs are provided......followed by an invoice

Teams - You said you would provide the rigs
BE - I did, and you have them, but I never said I would pay for them

[Mikeyboy]

I cannot see how even 3 years of legal costs could have got anywhere near £27million. So that advice by his lawyers seems both unethical (they are advising a client to break the law and pay a bribe/blackmail demand) and a poor judge of how much this would cost him.
He may feel confident that nothing will come of this but I wouldn't have that confidence if he's using the same lawyers

[E36GUY]

article said:

Ecclestone told the Daily Telegraph yesterday evening that he made the payment because the German banker "'threatened' to cause trouble for him with the Inland Revenue".

What sort of ammo did this man have that was worth a $27M be quiet payment?!!

[skinny]

pitpass still sympathetic to mr bernard E

http://www.pitpass.com/44243-Ecclestone-reveals-th...

[Eric Mc]

Bernie has traditionally declared a fairly large amount of his income for tax (and NI purposes). Whether the amount declared is anything like the true level of his overall earnings, I'll leave that to you to decide.

[Fetchez la vache]

E36GUY said:

article said:

Ecclestone told the Daily Telegraph yesterday evening that he made the payment because the German banker "'threatened' to cause trouble for him with the Inland Revenue".

What sort of ammo did this man have that was worth a $27M be quiet payment?!!

You haven't seen the pictures? Oh...

[Mermaid]

Mikeyboy said:

I cannot see how even 3 years of legal costs could have got anywhere near £27million. So that advice by his lawyers seems both unethical (they are advising a client to break the law and pay a bribe/blackmail demand) and a poor judge of how much this would cost him.
He may feel confident that nothing will come of this but I wouldn't have that confidence if he's using the same lawyers

Harbottle & Lewis?

[sinbaddio]

The reality is that £27 mill is around 1% of his total worth (estimated at £2.4 billion). So if he's getting threats about HMRC investigations which are a pain in the bum more than anything else and if severe irregularities are found potentially prison, the £27 million is a bargain!

[don logan]

E36GUY said:

article said:

Ecclestone told the Daily Telegraph yesterday evening that he made the payment because the German banker "'threatened' to cause trouble for him with the Inland Revenue".

What sort of ammo did this man have that was worth a $27M be quiet payment?!!

My thoughts!!!!!!!!!!!!

[Mermaid]

sinbaddio said:

The reality is that £27 mill is around 1% of his total worth (estimated at £2.4 billion). So if he's getting threats about HMRC investigations which are a pain in the bum more than anything else and if severe irregularities are found potentially prison, the £27 million is a bargain!

NOTW was less than 1% of Murdoch's empire, but the damage is much greater.

[Major T]

skinny said:

pitpass still sympathetic to mr bernard E

http://www.pitpass.com/44243-Ecclestone-reveals-th...

pitpass are bent over backwards in order to get the "scoops" from their "business editor" chris sylt and bernie e.

Shame, it used to be a decent website.

[Bill Ferry]

Weeell,
Couldn't happen to a nicer man.

[Mikeyboy]

sinbaddio said:

The reality is that £27 mill is around 1% of his total worth (estimated at £2.4 billion). So if he's getting threats about HMRC investigations which are a pain in the bum more than anything else and if severe irregularities are found potentially prison, the £27 million is a bargain!

The point towards the end of article was made that he knew there wouldn't be any irregularities and that this was just to save on hassle and legal fees.
That to me sounds unlikely. His accountants and lawyers would bear the brunt of the hassle and his fees wouldn't come close to £27million.
For the record I'm not saying he had anything to hide but I do doubt he was given good advice or went the right route with this one.
Or maybe i should ring up his lawyers and say I am going to reveal something dodgy about his financial situation, it seems a quick hassle free way to become a millionaire.

[Snoggledog]

Mikeyboy said:

I cannot see how even 3 years of legal costs could have got anywhere near £27million. So that advice by his lawyers seems both unethical (they are advising a client to break the law and pay a bribe/blackmail demand) and a poor judge of how much this would cost him.
He may feel confident that nothing will come of this but I wouldn't have that confidence if he's using the same lawyers

I can think of one divorce case which would probably rack up those kind of figures.

[mash]

Bernie? Criminal activities? You do suprise me...