Watford are facing disciplinary action over a falsified bank letter used to gain Football League approval for Gino Pozzo's takeover of the club from his father, Giampaolo, in the summer of 2014.
The Football League (EFL) has confirmed that it has begun "a disciplinary investigation into serious allegations" about the letter, which was published in an exclusive story by the Daily Telegraph on Tuesday.
An EFL spokesman told the newspaper: "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.