Bernie Ecclestone Could Face Bribery Charges and Jail Time

Bernie Ecclestone may face bribery charges stemming from the conviction of German banker Gerhard Gribkowsky for not paying taxes on bribes when BayernLB sold its stake in Formula 1 to CVC Capital Partners. Gribkowsky claims that Ecclestone paid him $56 million in bribes to sell the bank's stake to CVC. Ecclestone claims that the payment was blackmail because Gribkowsky was going to reveal a trust controlled by Ecclestone's then wife to UK tax authorities. The German State Prosecutor is considering filing bribery charges and an extradition request against Ecclestone. He could face up to 10 years in prison. 

Gribkowsky made a deal with German prosecutors to shorten the trail and reduce his sentence. Part of the deal was that he would admit Ecclestone paid him bribes. Gribkowsky will be sentenced this week to between 7 years 10 months and 9 years.

“I allowed myself to be bribed. It has taken me a long time to come to terms with what I did and to admit even to myself—yes, it was bribery, and yes, I should have paid tax. Even today I have troubles accepting this as reality. With hindsight, I know now that I should have said no to [Ecclestone's] demands," said Gribkowsky in court. 

Ecclestone admitted to the payments in court, but maintains that they were blackmail payments. 

“I have always said that we gave him money, but it was not for what he said. He was shaking me down a bit and saying I had control of a family trust, which was not true. The reason I paid him was that he was going to say something that wasn't true. I was a bit stupid. Normally I would have told him to get lost," said Ecclestone. 

The German state says that it has been investigating Ecclestone since 2011, but it will not file any charges until the Gribkowsky trial is over. The problem facing the prosecution against Ecclestone is proving the veracity of Gribkowsky accusations. 

Bernie Ecclestone Paid Bribes During F1 Sale, According to German Banker

Source: Autoweek