Former banker arrested in connection with F1 bribe investigation

7 January 2011

A German banker has been arrested for allegedly receiving $50 million in payments in connection with the sale of a stake in the Formula One (F1) motor racing business.

According to prosecutors, Gerhard Gribkowsky, a former risk manager at BayernLB, was paid the sum as ‘kickback’ after the government-owned bank sold its stake in F1 to CVC Capital Investment, the company holding the rights to the sport.

However, Mr Gribkowsky is accused of selling the stake “without evaluation of its current value".

This led to him receiving "two consultancy contracts totalling $50 million", which he is alleged to have paid into companies he established in Austria, prosecutors claimed.

In a statement, CVC Capital Partners said it had no knowledge of the investigation or any of the circumstances surrounding it.

“CVC confirms that it has no knowledge of, nor any involvement in, any payment to Mr Gribkowsky or anyone connected with him in relation to CVC’s acquisition of Formula One,” the firm added.

The former bank executive has been arrested on charges of corruption, tax fraud and breach of trust in connection with his ex-employers.

By Jim Ottewill

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