Watford chairman Raffaele Riva has stepped down with immediate effect after four years in charge at Vicarage Road to focus on "other business interests".
The Football League is investigating allegations of the club supplying false financial information, while the Hornets will present the findings of their own investigation early this month.
It is claimed by The Telegraph that a forged bank letter was submitted to the Football League when Gino Pozzo became Watford's sole owner in 2014.
A statement on the club's website read: "I have decided to step down as Chairman of Watford FC in order to focus on my other business interests.
"For the past four years I have acted with honesty and in good faith in all my dealings on behalf of the club, and the club has developed and grown a great deal in this period.
"I fully refute, and will protect vigorously my integrity against, any recent speculation."
Watford, who won promotion from the Championship in 2014-15, could have points deducted or be fined if they are found to be at fault.
