Northampton BC has won its compensation claim against the former directors of the local football club, in relation to a £10.25m loan which was never repaid.
Anthony Cardoza, the former owner of Northampton Town FC, was described as “thoroughly untrustworthy and unreliable” and ordered to repay £2.1m to the council.
His son, David Cardoza, will be required to repay an as yet undecided sum and was said to believe ”that lying and suppressing the truth is part and parcel of doing business”.
The case centred on three loans issued to the football club by the council to fund development of Sixfields stadium and an adjoining regeneration site.
Most of the money loaned to the club was transferred to a company called 1st Land, which later went into administration.
The court heard Anthony Cardoza received a series of payments from 1st Land.
Judge Simon Barker concluded that the company “was never in a position itself to carry out building works” and said the defendants “were unable to suggest any sensible reason for the appointment of 1st Land as contractor”.
Both Anthony and David Cardoza were found to have “acted in breach of their fiduciary duties as directors” of the football club.
The judge found the council’s witnesses in the case to be “truthful” and “reliable”.
Northampton BC leader Jonathan Nunn said: “It is good news that the court has found in our favour, and we are now focused on the enforcement options available to us.”
Northamptonshire Police is currently embarked on a separate criminal inquiry into the football club loan and has said up to 30 people could be charged in relation to the matter.
In December 2015, Northampton called in police and auditors to investigate the loan.
A 2016 report by auditor KPMG noted: “We are unable to state that Northampton Borough Council had proper arrangements to ensure it took properly informed decisions and deployed resources to achieve planned and sustainable outcomes for taxpayers and local people.”