Former JJB boss Chris Ronnie accused over £1m fraud
Chris Ronnie, the colourful former chief executive of JJB Sports, has been charged with a series of offences relating to an alleged £1m fraud, following an investigation by the Serious Fraud Office.Ronnie, 50, who ran the sportswear chain between August 2007 and March 2009, appeared at Westminster magistrates court on Wednesday charged with three fraud offences as well as two counts of money laundering and two of furnishing false information.David Ball, the co-owner of JJB supplier Fashion & Sport, was charged with three counts of furnishing false information.Both defendants were released on unconditional bail.The SFO said the alleged fraud related to a failure to disclose interests in contracts entered into by the firm in 2008.The court action is the first to surface since JJB executives set the hare running in 2009, calling in the Office of Fair Trading – in exchange for immunity – to investigate the possibility that it had fixed prices with rival Sports Direct, the sportswear firm run by Newcastle United owner Mike Ashley, when Ronnie was at the helm. Ronnie previously worked at Sports Direct.Sports Direct is the UK's biggest sportswear retailer and both chains enjoy strong positions in the market for replica football shirts. The OFT asked for the assistance of the SFO and it later emerged that the investigation had widened to suspected fraud. But to date the high-profile inquiries, which rocked the close knit sportswear industry, have come to nothing.In 2010 the SFO said its investigation into Sports Direct and JJB Sports had been completed and no charges would be brought. Then last year the OFT threw in the towel on its price-fixing inquiry as it had uncovered only limited evidence of potential price-fixing, much of which is contradicted by other material and had other higher priority investigations to pursue.JJB has cooperated fully with the SFO in relation to its investigation, a JJB spokesman said .The SFO said investigations into possible offences committed by other suspects are ongoing. The identity of other suspects is not known and last year Sports Direct said that shoes no individuals connected to the firm were being investigated.Ronnie's lawyer Anthony Barnfather said Mr Ronnie has fully co-operated with the Serious Fraud Office investigation and is surprised and disappointed at the decision. He strenuously denies the charges, has always maintained his innocence and is confident his position will be vindicated in due course.JJB has struggled to recover from Ronnie's tenure, narrowly avoiding administration thanks to a series of cash calls to investors, who include Microsoft founder Bill Gates.Its low share price was boosted this week after it confirmed it was in talks with its lender and one of its strategic partners about raising additional financing. They closed up 0.25p at 16.25p.
