AC boss to go to jail

More scandal from America's Cup alley

We've had Aucklandgate/Reevesgate. We've had alleged theft of technology documents belonging to Team New Zealand. We've had New Zealand High Court actions brought and hastily withdrawn by Prada. But now, Sweden's Victory Challenge has topped them all.

Mats Johansson, who as Project Manager of Victory Challenge is top dog in the Sweden's America's Cup challenger was sentenced to eight months imprisonment yesterday for 'gross tax evasion' at the district court of Varberg in Sweden. The case relates to income tax from 1994 on capital gains from the sale of boats Johansson sold privately.

Johansson informed the syndicate of the impending sentence one month ago and expected the result to be an acquittal or a suspended sentence. His legal council Thomas Wilton, shared this view.

Upon hearing the sentence Johansson immediately lodged an appeal to the Court of Appeal for Western Sweden.

Victory Challenge intends to continue to use Mats Johansson in the same capacity as before, at least while awaiting the result from the court of appeal. This process is not expected to be finished until after the America's Cup final 2003.