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From the BBC http://news.bbc.co.uk/2/hi/uk_news/england/7882765.stm
This is the same investigation that Redknapp was caught up in and they are still investigating 6 people all up
Brady denies involvement in fraud
Managing director of Birmingham City Karren Brady "vehemently denied" any wrongdoing after she was rearrested as part of a corruption inquiry.
City of London Police questioned Ms Brady, 39, as part of what officers say is an inquiry into "money laundering".
In a statement, the football club claimed the investigation centred on tax matters involving two footballers.
Ms Brady was previously arrested in April 2008 along with the club's co-owner, David Sullivan.
She was rearrested while answering bail on Tuesday.
City of London Police said those arrests were over allegations of false accounting and conspiracy to defraud and formed part of an "ongoing investigation into football corruption".
A spokeswoman for the force said: "We have been working with HM Revenue & Customs (HMRC) from the outset of the investigation.
In the fullness of time we believe the public will see that no offence has been committed by anyone at BCFC
Birmingham City statement
"The investigation has always focused on money laundering.
"The Fraud Prosecution Service has identified that tax offences may be involved."
The football club issued a statement on its website which read: "Birmingham City FC would like to confirm that Karren Brady has not been charged with anything and vehemently denies any wrongdoing.
"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."
Mr Sullivan was not required to answer bail on Tuesday and Ms Brady was released on bail after being questioned.
Police said a total of six people were on bail as part of the inquiry.
This is the same investigation that Redknapp was caught up in and they are still investigating 6 people all up
Brady denies involvement in fraud
Managing director of Birmingham City Karren Brady "vehemently denied" any wrongdoing after she was rearrested as part of a corruption inquiry.
City of London Police questioned Ms Brady, 39, as part of what officers say is an inquiry into "money laundering".
In a statement, the football club claimed the investigation centred on tax matters involving two footballers.
Ms Brady was previously arrested in April 2008 along with the club's co-owner, David Sullivan.
She was rearrested while answering bail on Tuesday.
City of London Police said those arrests were over allegations of false accounting and conspiracy to defraud and formed part of an "ongoing investigation into football corruption".
A spokeswoman for the force said: "We have been working with HM Revenue & Customs (HMRC) from the outset of the investigation.
In the fullness of time we believe the public will see that no offence has been committed by anyone at BCFC
Birmingham City statement
"The investigation has always focused on money laundering.
"The Fraud Prosecution Service has identified that tax offences may be involved."
The football club issued a statement on its website which read: "Birmingham City FC would like to confirm that Karren Brady has not been charged with anything and vehemently denies any wrongdoing.
"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."
Mr Sullivan was not required to answer bail on Tuesday and Ms Brady was released on bail after being questioned.
Police said a total of six people were on bail as part of the inquiry.
