foxsports
Swiss authorities say they have arrested the Chechen owner of Neuchatel Xamax, hours after the soccer club said it would file for bankruptcy.
Geneva prosecutors said in a statement Thursday that Chechen businessman Bulat Chagaev was arrested to prevent ''financial mismanagement.''
Prosecutors said a hearing was scheduled for Friday.
Chagaev, who denies wrongdoing, is at the center of Swiss criminal investigations into suspected fraud.
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Xamax was stripped of its license last week because of suspected fraud and a failure to prove it could meet its financial obligations.
Its debts are estimated at between $8.7-10.9 million.
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