Brown could face inquiry over conduct

Terry Brown may face an investigation into his conduct as a company director after admitting he misled fans over West Ham's financial position.

The Department of Trade and Industry said today they will probe the club chairman's comments for any possible breaches of company law if they receive an official complaint from a Hammers shareholder.

Brown has revealed he covered up the extent of the club's money problems following relegation from the Premiership to stop other clubs taking advantage.

A DTI spokesman said: "The department does not comment on individual companies but it is happy to consider any information that is presented to us."

Any investigation would focus on whether Brown misled shareholders. West Ham United plc's shares are not sold on the Stock Exchange so the regulations are less stringent than they are for publicly quoted clubs such as Manchester United. Officials could also probe Brown's personal conduct and decide if there is a case for him to be disqualified as a director of a limited company.

Brown told an emergency general meeting of shareholders in May that only one or two players would have to be sold but there would be no wholesale exodus. Since then the club have sold Joe Cole, Freddie Kanoute, Glen Johnson, Trevor Sinclair and Sebastien Schemmel for around £18million. In May, Brown also indicated they only needed to raise £10m through player sales but this week claimed they actually needed £20m.

West Ham, meanwhile, were trying to complete the £300,000 signing of Kevin Horlock from Manchester City in time for tomorrow's visit of Sheffield United.