The 17-year-old was one of three men arrested in Kirkby yesterday (Monday 4th October) on suspicion of possession of cannabis and counterfeit money.
It's unclear how serious the charges are and how heavily Baxter is implicated in what went on as the other two men involved are much older than him , one being 29 and the other 34-years-old.
Merseyside Police issued the following staement: "We can confirm that three men were arrested in Kirkby on possession of cannabis with intent to supply and on suspicion of possession of counterfeit money,"
Which implies that they've been caught with enough to keep the Park End happy at half time!
As for the counterfeit money, it seems that the Everton yuongster has taken the allegation that modern footballers have a licence to print money a bit too seriously!
Joking apart though, this is a serious allegation against Baxter and one that could already have put paid to his promising Everton career before it's even got off the ground.
The club are still to comment on the matter.