Watford could face punishment after a probe was opened into an allegedly forged bank letter that was first reported on Tuesday.
The English Football League (EFL) has opened an investigation into Watford following claims the club falsified financial information when Gino Pozzo became the club's sole owner in 2014.
The Daily Telegraph reported on Tuesday that Watford submitted a forged HSBC bank letter to show Pozzo had the financial resources to bankroll the Vicarage Road club. The EFL has now confirmed it is looking into the claims.
"We can confirm, following receipt of information from the Daily Telegraph, that we immediately commenced a Disciplinary Investigation into serious allegations made against Watford Football Club," an EFL statement reads.