Chechen-owned Neuchatel Xamax was deducted four points by the Swiss league on Wednesday for violating its license, including failing to pay players.
The league said it took one point because the club did not pay employees' social insurance in August. Xamax had three more points deducted for not paying salaries, plus social and accident insurance in September.
Xamax can appeal the sanction, which drops it from fifth to seventh in the 10-team top division. The league began a winter break this week.
Xamax was earlier fined 20,000 Swiss francs ($21,000) by the league for license violations, and faces two more investigations.
Xamax is suspected of giving league officials fake American bank documents which purported to show that owner Bulat Chagaev could finance the club, and not providing the league with copies of player contracts.
Chagaev is at the center of criminal investigations into suspected fraud regarding the bank documents. He was questioned last month by prosecutors in the cantons (states) of Neuchatel and Geneva.
Swiss media published copies of the documents they claimed Chagaev had submitted to a bankruptcy court hearing forced by a Xamax creditor.
They appeared to be Bank of America letters claiming Chagaev had access to $35 million.
However, they contained poor English grammar, dates and figures written in European style rather than American, and an address in West 33rd Street, New York, which had ceased to be a bank office.
Chagaev, who denies the allegations, has presided over a turbulent period since taking control of Xamax in May.
He has fired four team coaches, former Brazil and Barcelona forward Sonny Anderson as sporting director, while players threatened to go on strike because wage payments were late.
