England's Premier League has charged West Ham with breaching ownership rules in buying Argentine players Carlos Tevez and Javier Mascherano last August.
The Premier League said today their Board's view was that the transfers breached a rule that no club should enter into a contract enabling another party to influence its policies or its performances.
West Ham said they would "vigorously defend" themselves against the charge.
A statement on the League's website said the Board had submitted a complaint that agreements were in place in the case of both transfers to enable "third parties to acquire the ability materially to influence the Club's policies...or the performance
of its teams."
The League did not name the third parties.
The pair were signed on the last day of the transfer window from Brazilian club Corinthians though mystery surrounded the details of the deal.
The deal was also not the first time West Ham and Corinthians have been linked. Just over a year earlier an investment group, Media Sport Investment, which bought Corinthians in 2004, were in negotiations to buy West Ham.
MSI, headed by Iranian-born businessman Kia Joorabchian, had talks with the West Ham board in August 2005.
Joorabchian had said that he would spend lavishly especially on new talent but the deal failed to go through.
"At the time of the transfer agreements for both Tevez and Mascherano, and until January 24th, 2007, West Ham United failed to disclose the third-party agreements to the Premier League and/or deliberately withheld these agreements," the Premier League said.
Two months after the transfer saga Icelandic businessman Eggert Magnusson bought the East London club.
Their former chairman Terry Brown resigned earlier this week after staying on as non-executive director following the takeover.
West Ham are struggling second from bottom in the Premier League and neither Argentine has fulfilled expectations.
West Ham issued a statement saying they would answer the charges within the two weeks the Premier League stipulated.
"In light of the legal advice received, the club will vigorously defend itself against the charge and provide a detailed response as requested by the Premier League within the time allowed," the club statement said.
