Bribes charge hammers Wembley

THE boss of casinos and dog tracks group Wembley has been indicted on a $4.5m (£2.8m) bribery charge in the US state of Rhode Island.

Chief executive Nigel Potter is stepping down from his role to fight the charges, issued on Tuesday following a 12-month investigation by a Federal Grand Jury.

Dan Bucci, who runs the company's Lincoln Park US gambling operation, has also been charged.

The 22-count indictment alleges conspiracy to pay US law firm McKinnon & Harwood up to $4.5m over six years to 'improperly influence' local politicians and officials.

It claims the bribes were aimed at winning approval for more than 1,000 more video lottery machines; obtaining authorisation of coin-based rather than redeemable paper chit-based machines; and blocking legislation that would allow the development of a rival gambling casino in Rhode Island by the Narragansett-Indian tribe.

The indictment also details alleged efforts to couch the money as 'a legitimate payment' for legal services 'when, in fact, the payment was intended as a bribe...to (former Rhode Island House Speaker) John B Harwood and other public officials...'

In a statement, Wembley dismissed the charges as 'without foundation' but that did not stop a 21% plummet in the share price, leaving it 142 1/2p lower at 520p and taking an enormous £48.23m off the company's value.

The shares were also downgraded by Merrill Lynch, which changed from neutral to an outright sell. Its analyst Andrew Burnett said the indictment was 'as bad an outcome as could be expected' and warned a guilty verdict could leave the shares valued at as little as 300p.

Chairman Claes Hultman, who will run the company while Potter plans his defence, said: 'The board of Wembley believes that no US laws were broken, nor was there any intention to break any US laws. No payment was approved and no payment was ever made.'

Across the pond

IT MAY take its name from the football stadium that hosted Alf Ramsey's 1966 World Cup heroes, but Wembley Plc now generates 95% of its cash from the US.

After selling the stadium in 1999 for £103m it cut its ties with north-west London last August when it sold the neighbouring conference centre and exhibition hall.

Wembley is now known for greyhound tracks and slot machines, and Lincoln Park is its pride and joy. The tax take from its operation on Rhode Island makes it is the third-largest contributor to the island's state finances.

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