TSM completes internal investigation into financial fraud by Peter Zhang

According to Dexerto, North American esports organization TSM has completed an internal investigation into financial fraud by Peter Zhang. The club alleges that the former head of development diverted players' salaries and withheld more than $300,000 in debt.

In particular, it was alleged that Peter Zhang kept money from the players' salaries for himself, and also acted as a conduit for financial transfers between players and unspecified individuals in their native China.

In addition to this, he also kept money related to the $80,000 car sale for one of TSM's high-profile signings, SwordArt, when they left the team. After repeated requests for repayment, Peter Zhang became desperate and began asking players and colleagues for significant amounts of money, citing "medical bills" for his grandmother as the reason he was in financial trouble.

While Peter Zhang admitted that he kept the money from the sale of the car, vowing to return it, he denied that he withheld part of the players' salaries or selected certain players for financial gain.

Despite denials from its former supervisor, TSM has conducted an internal investigation and is preparing to release its findings. Specifically, the club says it has several sources of evidence that not only support the original claims but also reveal their scope.

In addition, the law firm involved in the investigation concluded that Peter Zhang did not act in the interests of the organization.

We have seen evidence pointing to other violations in connection with Mr. Zhang's role in recruiting players from China. In particular, some of the recommendations Mr. Zhang made to TSM may have been motivated by personal gain, including in connection with the salary scheme discussed above.

As a result, it was revealed that the vast majority of player wage transfers between December 2021 and February 2022, including large upfront payments, were redirected to non-player bank accounts, of which one was personally owned by Peter Zhang.

Peter Zhang himself did not cooperate with the investigation. A spokesman for the organization also confirmed that the matter had been referred to the FBI for further investigation.

Recall that the machinations of the former coach became known in March 2022. In addition to stealing, he was accused of taking bribes for a place in the team. Shortly thereafter, TSM terminated the contract with Peter Zhang and began its own investigation.