Millions of pounds of taxpayers' money intended for a football stadium redevelopment was "misappropriated" by developers, according to Precey & Sturdy of the BBC. Northampton Borough Council lent League Two side Northampton Town £10.25M ($14.8M) for the work, "none of which has been completed." High Court papers contain allegations developer Howard Grossman and his associates used a "substantial part" of the money for unrelated purposes. They have "denied the claims." A criminal inquiry is already underway into "alleged financial irregularities" surrounding the council's loan to Northampton Town. Former club Chair David Cardoza was "arrested last week as part of the investigation which police say is ongoing." Grossman was a director of the company 1st Land Ltd., "which was set up to carry out the refurbishment of parts of Sixfields Stadium and land adjacent to the ground -- work that included a new stand, hotel and conference centre." Approximately £8.75M ($12.6M) of the council's money "was transferred to 1st Land." In the High Court documents, Grossman was accused of "dishonest association." It was claimed his associates Marcus Grossman, Simon Patnick and Stephen Hewitt were paid £1.09M ($1.6M) and that Howard Grossman sought to "disguise this misappropriation of trust money by labeling these transfers as consultancy payments." The BBC has also seen a valuation sent on behalf of 1st Lands Ltd. to the football club in Aug. '14, "detailing the cost of work carried out on the Sixfields development, as part of an application for further payment" (BBC, 2/1).
