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GENEVA, January 27 (Itar-Tass) —— Swiss prosecutors said they arrested Chechen owner of Neuchatel Xamax football club Bulat Chagaev for suspected fraud. The detention came hours after the club said it would file for bankruptcy.
Geneva prosecutors said in a statement on Thursday Chagaev was arrested to prevent “financial mismanagement” and that a hearing was scheduled for Friday.
Xamax was stripped of its license last week because of suspected fraud and a failure to prove it could meet its financial obligations. Its debts are estimated at between $8.7-10.9 million.
Russian businessman Chagaev, 51, bought the club in May for one million euro from Italian Silvio Bernasconi.