A former director at Livingston is at the centre of a fraud investigation at the Scottish Premiership club.
The West Lothian side called in police after a missing six-figure sum was discovered by forensic accountants.
Last night chief executive John Ward said he could not comment on the details but confirmed a “criminal investigation was under way”.
Sources have said the police investigation is in relation to former director and vice-chairman Neil Hogarth.
The car sales boss, 56, quit the club at their AGM in 2020.
Club insiders have said there are concerns over “eye-watering” amounts of money paid to him by the club.
The team, who sit fifth in the SPFL table, have been involved in a bitter boardroom battle in recent years as various
factions fight for control.
In the past month police have carried out interviews with staff at Livingston, who have gone bust twice since 2003.
Accountants are understood to have identified four to five other possible fraudulent issues with the accounts.
A source said: “The club are attempting to sort out their financial future but there are a few massive outstanding issues.
"Livingston have a reputation for being a financial basket case and those running it now are trying to sort it out.
"A few years ago there was all these guys turning up at the stadium in suits every Saturday.
"But when Livingston were relegated from the Championship in 2016, most of them walked away.
“It seems little was being done to sort out their accounts during that time.
"There is missing money.
"But there are also other issues, with former people involved with the club coming forward now Livi is successful again and putting in claims for money they say they’re owed.”
Manager David Martindale has been praised for his work on changing the team’s fortunes.
Last year he told the Sunday Mail how he had turned his life around after being jailed on drug and money laundering charges in 2004.
Since leaving prison, he’s graduated from university and worked his way up at Livingston after joining as a volunteer coach. There is another ex-prisoner at the Tony Macaroni Arena.
The club were heavily criticised for involving convicted fraudster Gordon Beurskens in their affairs in 2020.
He was jailed for 18 months in 2014 when Sheriff Kevin Drummond claimed he showed “no remorse” after embezzling an elderly couple’s £80,000 life savings.
But the club said former West Lothian councillor Beurskens is unconnected to the ongoing fraud claims.
Latest accounts, published last year, show Livingston Football Club Limited had instructed advisers to comb through recent financial dealings.
Between 50 and 75 per cent of the club is owned by Opcco 6 Limited, which Hogarth resigned from in January 2020.
Speaking about the fraud case, Hogarth said: “All I can say on this matter is it is subjudiciary.”
Beurskens, who works as a consultant at Livingston, declined to comment.
Ward said: “The club can’t comment on what is now a live criminal case.
"The board of Livingston FC has engaged forensic accountants to examine historical financial irregularities over a 10-year period involving individuals formerly associated with the club.”
Police said: “A 56-year-old man has been arrested and charged in connection with fraud.
"A report has been submitted to the Procurator Fiscal.”
The Crown Office said it had not yet received allegations of the crime.
