Swiss prosecutors said Friday they were considering keeping Chechen businessman Bulat Chagaev in detention for the weekend after arresting him over suspected fraud at his Swiss SuperLeague side Neuchatel Xamax.
Chagaev, the club's owner, stands accused of "dishonest management" and was detained on Thursday hours after it declared bankruptcy.
Sophie Bernard, a spokeswoman for the Geneva prosecutors' office, told RIA Novosti that Chagaev would face questioning Friday, after which prosecutor Yves Bertossa would decide whether to extend his arrest.
Under Swiss law, dishonest management carries punishment ranging from fines to a five-year prison sentence depending on the severity of the offense, Swiss media said. It is likely Chagaev would be deported if charged and found guilty.
The charge of dishonest management covers offences including fraud, deliberate mismanagement of others’ assets and bribery.
The 51-year-old Russian citizen bought Xamax in May 2011. The Swiss league revoked the club's playing license earlier this month after Chagaev was accused of providing fraudulent documents that he claimed proved the club's solvency. Chagaev declared the club bankrupt after courts threw out his appeal to regain the playing license, dismissing the club's players and staff.
Prosecutors allege that Chagaev could have submitted false evidence of having $35 million on his account in the bank in order to avoid Xamax's bankruptcy procedure.
Since he bought the team, Chagaev has dismissed five coaches and sacked some players after just one appearance for the club. He also dropped all the club’s sponsors.
During the summer break in the 2011 season, the club unveiled a new crest featuring Chechen symbols and submitted an application to the SFL to change its name to include a reference to the Vainakh people of the Caucasus, which was rejected.
Some reports in Swiss media claimed Chagaev even threatened the players with violence.
