Former Milan owner Yonghong Li is under investigation in Italy for allegedly misleading financial markets with his public statements.
The Chinese businessman bought the Rossoneri from Silvio Berlusconi and Fininvest in April 2017, financed by a series of loans from the Elliott Management Corporation.
When he failed to pay €32m for a capital increase the hedge fund seized control of the club, and Corriere della Sera now reports Li is under investigation for misleading financial markets.
Former Milan owner Yonghong Li is under investigation in Italy for allegedly misleading financial markets with his public statements.
The Chinese businessman bought the Rossoneri from Silvio Berlusconi and Fininvest in April 2017, financed by a series of loans from the Elliott Management Corporation.
When he failed to pay €32m for a capital increase the hedge fund seized control of the club, and Corriere della Sera now reports Li is under investigation for misleading financial markets.
The former owner repeatedly assured through official statements that he was in a position to meet his obligations as they fell due, despite his assets being sent to a bankruptcy tribunal in China.
Now Milan’s financial police want to find out why Li would take a loss of close to €700m by allowing Elliott to take over – and why he repeatedly ensured the situation was in hand.
If he didn’t have the €32m which would have delayed such a scenario until October, it raises questions over why he didn’t accept the various takeover bids on the table.
While selling to Rocco Commisso or Tom Ricketts would have meant a significant loss, Li could have retained a stake in the club and wouldn’t have incurred all the losses himself.
If the Chinese businessman repeatedly made official statements he knew to be untrue, it would mean he was intentionally misleading markets and shareholders.