Arsenal is "entangled in a suspected fraud involving a Chinese carmaker," which said that it was "duped by a person posing as an employee who signed unauthorized contracts with advertising partners," according to BLOOMBERG. BYD Co., an electric-car maker backed by Warren Buffett, asked the police to investigate a person who it says "damaged its reputation and harmed related parties." Arsenal, which announced a pact with BYD in April, said that the carmaker informed the club that the deal was "among those potentially affected by a fraud." The person is not an employee and never has been, and BYD has not authorized the person to conduct business in its name, the Shenzhen-based company said in a statement to the Hong Kong stock exchange Monday. The carmaker also said that it reported to the police a forged company seal, which "may have been used to stamp contracts that the person awarded." The partnership was announced on Arsenal's website, along with a statement that included quotes from the club's COO as well as BYD's brand and public relations director. Then, on July 13, Arsenal said that the carmaker believes "it is the victim of a fraud related to various advertising agreements," including the partnership with the club. Arsenal said that it is "investigating the situation while talking to senior management of BYD." A spokesperson for the club declined to comment beyond the statement (BLOOMBERG, 7/15).
