Olympics-Sports Hospitality firm THG denies ticket fraud accusation

By Karolos Grohmann RIO DE JANEIRO, Aug 9 (Reuters) - Sports hospitality firm THG Sports on Tuesday denied accusations of fraudulent marketing of Rio Olympics tickets after one of its directors and an interpreter working for the Games were detained. Brazilian police on Monday said they seized more than 1,000 tickets that were being marketed at very high prices for the first Games to be held in South America. The tickets had been destined for the Olympic Council of Ireland (OCI), which said it was investigating. Polce told a news conference on Monday that the company could have made around 10 million reais ($3 million)from buying tickets and reselling them at a higher price. Police identified the THG director as Kevin James Mallon and the translator, who they said was also an employee of the company, as Barbara Carnieri. "Whilst we are fully investigating the matter with the Brazilian authorities and with our local lawyers, THG entirely refute any suggestion that they or he have acted in any way unlawfully," a company spokesperson said. This is not the first time THG has made the headlines in Brazil over tickets. In 2014 THG chief executive James Sinton, was detained in Rio de Janeiro, accused of forming what police said was part of a "ticketing mafia" for the soccer World Cup in Brazil that year. He was fined and promptly left Brazil. "Based on a preliminary review of the facts, we understand Mr Mallon has not breached any local laws or IOC rules," the THG spokesperson said. "As a consequence THG will be vigorously defending Mr Mallon as well as taking any appropriate action to stop any illegitimate attempt by the Brazilian authorities to disrupt THG's legitimate activities." Mallon was detained on suspicion of being in possession of false tickets and faces accusations of false marketing, associating with criminals, and touting. Carnieri was detained on suspicion of false marketing. THG Group is owned by Marcus Evans Group, which also controls English soccer club Ipswich Town. In 2010, the OCI appointed THG as its official ticketing agent for the 2012 London Olympics and the 2014 Winter Games in Sochi. The son of the head of the OCI, Patrick Hickey, who is an International Olympic Committee member, had briefly worked for the company in the past. The OCI has said it did not know Mallon and Carnieri and had launched an investigation into the affair. "OCI has launched an immediate investigation with our Authorised Ticket Reseller, Pro10, into how the individuals were allegedly in possession of OCI allocated tickets," it said. "The OCI strictly adheres to the IOC regulations around ticket allocation, sale and re-sale. We are treating this matter with the utmost seriousness." ($1 = 3.1404 Brazilian reais) (Reporting by Karolos Grohmann; Editing by Alison Williams)