'No further action' into West Brom 2014 loan after investigation
Albion say will there will be no further action will be taken in relation to a loan made to former chairman Jeremy Peace after completing a 'thorough investigation' by a top barrister.
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After an 18-month investigation, the independent King's Counsel Sebastian Isaacs has reported back to the club and minority shareholders' group Shareholder for Albion (S4A).
The investigation was begun in 2022, when S4A demanded a probe into the loan Peace took out in 2014.
Peace borrowed the sum against the club and into his own company, WBA Holdings, in 2014. The club's previous majority shareholder Guochuan Lai inherited the debt, with interest having then exceeded £1m taking the monies owed in the region of £5m, after he purchased Albion in 2016.
It was claimed by S4A that former chairman Peace may have used the loan to WBA Holdings to assist in purchasing increased shares in WBA Group, the club's parent company.
Peace's shares increased from 65 per cent to 88 per cent in 2014. Peace claimed the move was 'completely advantageous' to the club.
However, a statement by the club, now owned by Shilen Patel, said: "The report has been reviewed carefully by both the Club and the representative of S4A, with their respective solicitors. Having done so, both have concluded that no further action will be taken and, so far as both the club and S4A are concerned, the matter is closed."
It stated "Mr Isaac KC has now provided his report to the club and the appointed representative of S4A. The club would like to thank him for his thorough investigation into the matters referred to him and the detailed analysis in his report.
"The club would also like to thank those individuals who participated in the investigation voluntarily.
"Mr Isaac KC was provided with a substantial amount of documentation and evidence. This enabled him to reach his findings. The investigation has taken 18 months to complete as there were many complex issues to investigate and consider. It was in the stakeholders’ interest for the investigation to be as thorough as possible.
"The club’s current directors remain under an obligation in relation to repayment of the loan and are entitled to take account of the arrangement with Bilkul Football WBA LLC (“Bilkul”)."
It concluded :"As the matter has been investigated fully and the matter is now closed, neither the Club nor S4A (other than a confidential update to its members) will make any further comment on the 2014 loan, the investigation or the report. "
