UPDATE 2-Four THG executives accused of Olympic ticketing scam

By Rodrigo Viga Gaier
Reuters

(Adds police spokesman comment)

RIO DE JANEIRO, Aug 15 (Reuters) - A Brazilian judge on Monday ordered the arrest of four executives at international sports hospitality company THG Sports accused of fraudulent ticket sales at the Olympics, widening an investigation into ticket overcharging at the Games.

THG rejected the accusations against the company and its director Kevin Mallon, saying that more than 1,000 tickets seized by police were being held legally on behalf of authorized Irish reseller Pro 10 and criticizing local Olympic organizers.

The police did not name the four executives but said they were directly involved in a scheme to overcharge for tickets.

A spokesman for the police, however, said the four men could not be detained because they were not in Brazil.

Last week police detained Mallon and a translator employed by the company, alleging that they could have made 10 million reais ($3 million) from buying tickets and reselling them at a higher price.

THG and Pro 10 said in separate statements that Mallon was holding authorized tickets for collection by European clients in Rio and both accused Rio 2016 organizers of spreading misinformation.

"It appears that (organizers) and the local authorities have an agenda to impede the legitimate activities of THG in order to support the activities of their locally approved hospitality provider," said THG.

Pro 10 added that it had suffered commercial losses due to the seized tickets and declined to comment further on the issue.

In their statement last week, police noted that the chief executive of THG, James Sinton, was detained in Rio in 2014, accused of forming part of a World Cup "ticketing mafia."

THG has denied that Sinton was arrested during the World Cup and said he voluntarily made a statement to police.

THG Group is owned by Marcus Evans Group, which also controls English soccer club Ipswich Town.

In 2010, the Olympic Council of Ireland appointed THG as its official ticketing agent for the 2012 London Olympics and the 2014 Winter Games in Sochi.

($1 = 3.16 Brazilian reais) (Reporting by Rodrigo Viga Gaier; Writing and additional reporting by Daniel Flynn and Brad Haynes; Editing by Nina Chestney and Bill Rigby)

08/15/2016 15:22