Is 82-year-old F1 boss Bernie Ecclestone going to face bribery charges?
His name has surfaced in connection with a variety of questionable activities over the years yet Formula One czar Bernie Ecclestone has always managed to steer clear of trouble. But now, his luck may be running out as German newspaper Bild reports that German prosecutors are preparing to file bribery charges that could put the British mogul behind bars for up to a decade.
The potential charges stem from the ongoing trial of German banker Gerhard Gribkowsky, who has been held in a Munich prison for the past 18 months. Gribkowsky’s lengthy trial, which began last October, covers a myriad of charges including corrupt payments, tax evasion and breach of trust against his employer. It all stems out of the 2006 sale of the Formula One holding company to its current controlling shareholder, CVC Capital Partners.
In a deal with prosecutors to reduce his sentence to no more than nine years, the former banker had admitted, “I allowed myself to be bribed. It has taken me a long time to come to terms with what I did to admit it even to myself – yes, it was bribery, and yes, I should have paid tax. Even today I have troubles accepting this as reality.” But the damage came when Gribkowsky adds that, “With hindsight, I know now that I should have said no to (Bernie Ecclestone’s) demands.”
Evidence suggests $44 million in payments from Ecclestone and his family’s offshore trust were directed to accounts controlled by Gribkowsky in order to get a favorable deal for the shares of F1 stock previously held by the banker’s employer, BayernLB. Gribkowsky recalled that he asked for $50 million but was surprised to ultimately get so much money since “$10 million would have been more normal.”
As a result, “Bernie Ecclestone should expect (German prosecutors) to prepare an international arrest warrant” and to seek his extradition from Great Britain, German legal consultant Sewarion Kirkitadze told Bild.
For his part, Ecclestone actually acknowledged making payments to Gribkowsky – but insists it was a payoff to prevent the banker from making false claims rather than a bribe. “He was shaking me down a bit and saying that I had control of a family trust, which was not true,” the 82-year-old told the Bloomberg news service. Ecclestone said “I was a bit stupid” for not telling him “to get lost,” but was worried he could have faced extensive problems with British tax authorities.
German prosecutors confirmed they have been investigating Ecclestone since last year but will not discuss their plans – and whether they would involve filing charges – until after Gribkowsky is sentenced.
For their part, Ecclestone’s lawyers are making it clear that if the Formula One chief is, indeed, charged, they will challenge the credibility of “self-serving” testimony of Gribkowsky and other evidence in the former banker’s trial that may not be useable in a case against Ecclestone.