Birmingham defend Brady after re-arrest

Karren Brady and David Sullivan have been told no further action will be taken against them (GETTY IMAGES)

Birmingham City managing director Karren Brady denied any wrong doing after being re-arrested by police investigating alleged corruption in English football.

The 39-year-old was questioned yesterday by City of London Police officers and released on bail.

Ms Brady was first arrested last April, along with the club's co-owner David Sullivan.

The pair were questioned on suspicion of conspiracy to defraud and false accounting.

In November 2007, officers arrested a series of high-profile figures in the national game in a controversial series of raids.

A City of London Police spokeswoman said last night: "A 39-year-old woman was arrested on suspicion of a further offence as part of the ongoing football investigation."

She said it was not possible to provide details of the offence, adding: "We have been working with HM Revenue & Customs (HMRC) from the outset of the investigation.

"The investigation has always focused on money laundering.

"The Fraud Prosecution Service has identified that tax offences may be involved."

Birmingham City later released a statement which read: "Birmingham City FC would like to confirm that Karren Brady has not been charged with anything and vehemently denies any wrong doing.

"The new 'arrest' as stated by the police this evening relates to exactly the same two players that both David Sullivan and Karren Brady have already been arrested and questioned for and it simply confirms that the police are alleging PAYE and NI offences in relation to these two players.

"In the fullness of time we believe the public will see that no offence has been committed by anyone at BCFC.

"The club continues to assist the police with their inquiries and have answered every question put to them."

Other figures who remain on bail are believed to include former Portsmouth boss Harry Redknapp, the club's chief executive Peter Storrie, former chairman Milan Mandaric, former player Amdy Faye and agent Willie McKay.

Ms Brady, 39, became the UK's youngest football managing director when Birmingham City floated on the stock market in 1997.

She is also chairman of Kerrang! magazine and non-executive director of Channel 4, Mothercare and Sport England.

The HMRC said it was not making any comment.