The Pozzo family released a statement denying they were aware of falsified bank documents, but Watford could be docked Premier League points.
Gino Pozzo, who also own Serie A side Udinese and until recently Granada in Spain, completed the takeover of the Hornets in 2014 when taking complete control from his father Giampaolo.
The English Football League has opened an investigation following allegations in the Daily Telegraph that Watford supplied false financial documents to the governing body.
The Pozzo family released a statement denying they were aware of falsified bank documents, but Watford could be docked Premier League points.
Gino Pozzo, who also own Serie A side Udinese and until recently Granada in Spain, completed the takeover of the Hornets in 2014 when taking complete control from his father Giampaolo.
The English Football League has opened an investigation following allegations in the Daily Telegraph that Watford supplied false financial documents to the governing body.
A statement from the EFL confirmed action was being taken and they were waiting for a response from the club.
“Watford Football Club was recently contacted by the EFL in relation to matters concerning a proof of funds document for £7m provided to the EFL by Hornets Investments Ltd in 2014 in order to ratify a change in Hornets Investments Ltd shareholding,” read the club statement.
“The Club had no prior knowledge of any concerns about the authenticity of the document and Hornets Investments Ltd has invested over £20m into the Club since the proof of funds 2014 document.
“The Club takes this matter extremely seriously and has instructed independent solicitors to carry out an investigation into relevant matters and provide the EFL with the solicitor’s report early next month. The EFL has indicated it is happy with this course of action.
“In light of the ongoing investigation it would be inappropriate to comment further at this time.”