Bill Tomlins, who has resigned as chairman of Championship side Luton Town, has admitted making irregular payments to agents on three occasions.
But Tomlins told BBC Three Counties that he made no private gain himself and contacted the Football Association to report what had happened.
Following Tomlins approach, the FA has confirmed it is holding an inquiry.
Tomlins added he felt it was the right time to resign with major investment into the club expected within 48 hours.
"I feel it is appropriate for me to stand down at this time"
It remains unclear whether the investment amounts to a direct takeover of the club.
Tomlins told the BBC that the irregular payments were made through the club's holding company J10.
A Luton statement said: "Earlier this year Mr Tomlins approached the FA requesting a meeting to clarify certain matters relating to the football club.
"Following this meeting the FA is currently carrying out an inquiry."
Tomlins said: "There has been too much disruption surrounding the club in recent months. I feel it is appropriate for me to stand down at this time."
The Luton statement added: "The board recognises the contribution made by Mr Tomlins while he was chairman of the club.
"As the matter is now with the Football Association there will be no further comment by the club until the inquiry has been completed."