Merged: FIFA, Blatter and all

[Forever Fulham]

Today, in the N.Y. Times:



U.S. Attorney General Predicts More Charges in FIFA Case


By REBECCA R. RUIZSEPT. 14, 2015

Attorney General Loretta E. Lynch said Monday that the United States' crackdown on corruption in global soccer was expanding, with new charges expected in the coming months.

Ms. Lynch made the comments in Switzerland, not far from the headquarters of FIFA, soccer's global governing body, at the start of a week in which the FIFA investigation will take center stage in Europe. Law enforcement officials from around the world are congregating for conferences in Zurich and Amsterdam to hear how the case came together and how it might unfold.

"We anticipate pursuing additional charges against individuals and entities," Ms. Lynch said Monday of the United States' inquiry, a coordinated effort among the Department of Justice, the Federal Bureau of Investigation and the Internal Revenue Service.

Ms. Lynch spoke in a joint appearance with Michael Lauber, the Swiss attorney general, who is leading a parallel investigation of corruption in FIFA. Their news conference took place at the Renaissance Zurich Tower Hotel, two miles from the luxury hotel where seven top soccer officials were handcuffed at dawn in May in a wave of arrests that have left FIFA in turmoil.

Closing with a warning "to anyone who seeks to live in the past and to return soccer to the days of corruption and bribery, cronyism and patronage," Ms. Lynch said, "You are on the wrong side of progress."

Swiss investigators, eager to show that they are just as vigilantly policing an organization headquartered in their country, announced developments in their own inquiry.

Mr. Lauber said the Swiss authorities had seized properties in the Alps and identified 121 bank accounts in connection with the case. He called the Swiss financial intelligence unit's expertise particularly helpful to the investigation, as the I.R.S.'s has been to the United States.

"However, this positive input comes with a high price," Mr. Lauber said, calling the process of reviewing individual bank transactions time-consuming and adding that it was too soon to estimate the value of frozen assets. "This investigation will take much more than the legendary 90 minutes," he said.

In their investigation, Swiss prosecutors are focused on allegations of bribery related to the bidding for the next two World Cups, which were awarded to Russia for 2018 and to Qatar for 2022. The United States' case centers on bribery and kickback schemes related to the sale of media and marketing rights, exceeding $150 million over 24 years.

Since the arrests in May, little information has been released about the investigations, which have prompted several other countries whose nationals have been charged to open their own inquiries; those countries include Argentina, Brazil, Nicaragua, Paraguay and Trinidad and Tobago.

In May, Kelly T. Currie, the acting United States attorney for the Eastern District of New York, whose office brought the case, called the 47-count indictment unsealed that month "the beginning of our work, not the end."

Citing their continuing inquiries, the F.B.I. and the I.R.S. declined to comment Monday.

Ms. Lynch was in Zurich on Monday to participate in a conference held by the International Association of Prosecutors, whose main theme this year is international cooperation. Mr. Lauber, who led the news conference, said he had invited Ms. Lynch to Zurich, giving his country's investigation a shared spotlight with that of the United States, which opened its case in 2011, before Swiss prosecutors did.

Discussion of the FIFA case this week will extend beyond Monday, and beyond Switzerland. In Amsterdam on Thursday, Richard Weber, the chief of criminal investigations at the I.R.S., will deliver the keynote speech at an international tax conference. Hundreds of law enforcement officials from dozens of countries are expected to attend the conference, whose theme of international tax crime is pegged to the FIFA investigation.

In his speech, Mr. Weber is expected to discuss international corruption, cooperation and the role of banks in investigations like the FIFA case.

Mr. Weber's I.R.S. unit, working with F.B.I. agents in New York, is credited with having helped break open the case with its investigation of Chuck Blazer, a former United States soccer official who did not file personal income tax returns.

In 2013, Mr. Blazer secretly pleaded guilty to tax and corruption charges, providing key cooperation that helped the United States charge 17 other men. Three of them have pleaded guilty, and three others have been arraigned in federal court in Brooklyn, having pleaded not guilty as cases against them proceed. The rest remain abroad, and some are contesting extradition.

Meanwhile, FIFA's leadership in Zurich has remained intact. Sepp Blatter, president of FIFA, and his deputy, Jérôme Valcke, have said they plan to stay in their positions until February, when the organization's 209 member countries are due to gather in Switzerland — as they last had in May, when the arrests took place — to elect a new leader.

Before then, the organization's executive committee, a smaller group of 24, will meet this month, with officials from countries including the United States expected to attend.

[Nick Bateman]

One did not know American law is now International law and they can "arrest" people from anywhere, or if not, smear officials without any evidence as you have outlibed above.  In most cases outside of the U.S. this would constitute a breach of civil liberties and would prejudice any proposed trial.

Of course, all their multi-billionaires gorging themselves with corruptly acquired gains are not under any scrutiny from this politically motivated investigation with absolutely no interest in benefitting football, a sport these people know very little about!

[Forever Fulham]

One did not know American law is now International law and they can "arrest" people from anywhere, or if not, smear officials without any evidence as you have outlibed above.  In most cases outside of the U.S. this would constitute a breach of civil liberties and would prejudice any proposed trial.

Of course, all their multi-billionaires gorging themselves with corruptly acquired gains are not under any scrutiny from this politically motivated investigation with absolutely no interest in benefitting football, a sport these people know very little about!

Nick, you know better than that.   Nations have all sorts of treaties with one another.  For instance,  if a U.K. citizen kills someone and flees to the U.S. before capture, U.S. authorities will work through extradition treaty protocols with Britain to see that he is returned to stand trial.  And vice versa.  Sometimes the corpus might not be in the foreign state, but the bad acts occurred there, as was the case in the FIFA matter.  New York-based banks and accounts were used to launder money and perpetrate certain crimes (ahem, "allegedly") by foreign nationals.  I don't recall the specific grounds in the instant case that provided jurisdiction, but I seem to recall that it was something like that.  An instrumentality within the U.S. used to further criminal conspiracy ("allegedly").

As to your assertion that "they" (American public officials?) are somehow "smear[ing] officials without any evidence," I don't  know how to begin to respond.  Have you read the indictment?  Switzerland officials would not be cooperating with the U.S. (as have British officials) without compelling evidence of criminal activity provided by the U.S. to the Swiss. 

Have you not personally railed against FIFA in the past?  Why now this sudden hostility and turnabout?

Perhaps it just bugs you that by mere happenstance it was an American federal prosecutor who followed the money and went after FIFA, when, for decades, no one in Europe mounted a serious legal campaign to discover and address the alleged corruption within FIFA.  I take no personal pride in that.  I'm just glad the pressure is on, the tree is getting shaken, and that hopefully good will come of it.  I think it will.  We'll see. 

You'd be on stronger ground, I think, if you were to insinuate that the U.S. had some political motivation to bring those charges, surrounding, perhaps, the Qatar and Russian hosting awards by FIFA.  That  would of course be pure speculation on your part.  But you and I might have some common ground there. 

[Burt]

Things like the FCPA (Foreign Corrupt Practices Act) whilst US based legislation are trans-national in their scope. 

[snarks]

It may have something to do with money going through American banks or using american based servers to do the transactions. Their laws mean that using their infer structure is an offence in America or if it involves their citizens, ie if someone pays Blazer then that may be an offence too.

[Jonaldiniho 88]

I thought if any transaction that was completed in US dollars anywhere in the world could be charged by US prosecution. I could well be wrong. I couldn't care less who or how these people are brought to justice. As long as it's a fair trial that is.

[Forever Fulham]

Here's the U.S. Justice Dept's Press Release of May 27, shedding more light onto the original indictments, the grounds, etc.  I'll try to find and post more details of the jurisdictional underpinnings, and readers can decide for themselves if the U.S. overreached.


FOR IMMEDIATE RELEASE
Wednesday, May 27, 2015
Nine FIFA Officials and Five Corporate Executives Indicted for Racketeering Conspiracy and Corruption

The Defendants Include Two Current FIFA Vice Presidents and the Current and Former Presidents of the Confederation of North, Central American and Caribbean Association Football (CONCACAF); Seven Defendants Arrested Overseas; Guilty Pleas for Four Individual Defendants and Two Corporate Defendants Also Unsealed

A 47-count indictment was unsealed early this morning in federal court in Brooklyn, New York, charging 14 defendants with racketeering, wire fraud and money laundering conspiracies, among other offenses, in connection with the defendants' participation in a 24-year scheme to enrich themselves through the corruption of international soccer.  The guilty pleas of four individual defendants and two corporate defendants were also unsealed today.

The defendants charged in the indictment include high-ranking officials of the Fédération Internationale de Football Association (FIFA), the organization responsible for the regulation and promotion of soccer worldwide, as well as leading officials of other soccer governing bodies that operate under the FIFA umbrella.  Jeffrey Webb and Jack Warner – the current and former presidents of CONCACAF, the continental confederation under FIFA headquartered in the United States – are among the soccer officials charged with racketeering and bribery offenses.  The defendants also include U.S. and South American sports marketing executives who are alleged to have systematically paid and agreed to pay well over $150 million in bribes and kickbacks to obtain lucrative media and marketing rights to international soccer tournaments.

The charges were announced by Attorney General Loretta E. Lynch, Acting U.S. Attorney Kelly T. Currie of the Eastern District of New York, Director James B. Comey of the FBI, Assistant Director in Charge Diego W. Rodriguez of the FBI's New York Field Office, Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI) and Special Agent in Charge Erick Martinez of the IRS-CI's Los Angeles Field Office.

Also earlier this morning, Swiss authorities in Zurich arrested seven of the defendants charged in the indictment, the defendants Jeffrey Webb, Eduardo Li, Julio Rocha, Costas Takkas, Eugenio Figueredo, Rafael Esquivel and José Maria Marin, at the request of the United States.  Also this morning, a search warrant is being executed at CONCACAF headquarters in Miami, Florida.

The guilty pleas of the four individual and two corporate defendants that were also unsealed today include the guilty pleas of Charles Blazer, the long-serving former general secretary of CONCACAF and former U.S. representative on the FIFA executive committee; José Hawilla, the owner and founder of the Traffic Group, a multinational sports marketing conglomerate headquartered in Brazil; and two of Hawilla's companies, Traffic Sports International Inc. and Traffic Sports USA Inc., which is based in Florida.

"The indictment alleges corruption that is rampant, systemic, and deep-rooted both abroad and here in the United States," said Attorney General Lynch.  "It spans at least two generations of soccer officials who, as alleged, have abused their positions of trust to acquire millions of dollars in bribes and kickbacks.  And it has profoundly harmed a multitude of victims, from the youth leagues and developing countries that should benefit from the revenue generated by the commercial rights these organizations hold, to the fans at home and throughout the world whose support for the game makes those rights valuable.  Today's action makes clear that this Department of Justice intends to end any such corrupt practices, to root out misconduct, and to bring wrongdoers to justice – and we look forward to continuing to work with other countries in this effort."

Attorney General Lynch extended her grateful appreciation to the authorities of the government of Switzerland, as well as several other international partners, for their outstanding assistance in this investigation.

"Today's announcement should send a message that enough is enough," said Acting U.S. Attorney Currie.  "After decades of what the indictment alleges to be brazen corruption, organized international soccer needs a new start – a new chance for its governing institutions to provide honest oversight and support of a sport that is beloved across the world, increasingly so here in the United States.  Let me be clear: this indictment is not the final chapter in our investigation." 

Acting U.S. Attorney Currie extended his thanks to the agents, analysts and other investigative personnel with the FBI New York Eurasian Joint Organized Crime Squad and the IRS-CI Los Angeles Field Office, as well as their colleagues abroad, for their tremendous effort in this case.

"As charged in the indictment, the defendants fostered a culture of corruption and greed that created an uneven playing field for the biggest sport in the world," said Director Comey.  "Undisclosed and illegal payments, kickbacks, and bribes became a way of doing business at FIFA.  I want to commend the investigators and prosecutors around the world who have pursued this case so diligently, for so many years."

"When leaders in an organization resort to cheating the very members that they are supposed to represent, they must be held accountable," said Chief Weber.  "Corruption, tax evasion and money laundering are certainly not the cornerstones of any successful business.  Whether you call it soccer or football, the fans, players and sponsors around the world who love this game should not have to worry about officials corrupting their sport.  This case isn't about soccer, it is about fairness and following the law.  IRS-CI will continue to investigate financial crimes and follow the money wherever it may lead around the world, leveling the playing field for those who obey the law."

The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.

The Enterprise

FIFA is composed of 209 member associations, each representing organized soccer in a particular nation or territory, including the United States and four of its overseas territories.  FIFA also recognizes six continental confederations that assist it in governing soccer in different regions of the world.  The U.S. Soccer Federation is one of 41 member associations of the confederation known as CONCACAF, which has been headquartered in the United States throughout the period charged in the indictment.  The South American confederation, called CONMEBOL, is also a focus of the indictment.

As alleged in the indictment, FIFA and its six continental confederations, together with affiliated regional federations, national member associations and sports marketing companies, constitute an enterprise of legal entities associated in fact for purposes of the federal racketeering laws.  The principal – and entirely legitimate – purpose of the enterprise is to regulate and promote the sport of soccer worldwide.

As alleged in the indictment, one key way the enterprise derives revenue is to commercialize the media and marketing rights associated with soccer events and tournaments.  The organizing entity that owns those rights – as FIFA and CONCACAF do with respect to the World Cup and Gold Cup, their respective flagship tournaments – sells them to sports marketing companies, often through multi-year contracts covering multiple editions of the tournaments.  The sports marketing companies, in turn, sell the rights downstream to TV and radio broadcast networks, major corporate sponsors and other sub-licensees who want to broadcast the matches or promote their brands.  The revenue generated from these contracts is substantial: according to FIFA, 70% of its $5.7 billion in total revenues between 2011 and 2014 was attributable to the sale of TV and marketing rights to the 2014 World Cup.

The Racketeering Conspiracy

The indictment alleges that, between 1991 and the present, the defendants and their co-conspirators corrupted the enterprise by engaging in various criminal activities, including fraud, bribery and money laundering.  Two generations of soccer officials abused their positions of trust for personal gain, frequently through an alliance with unscrupulous sports marketing executives who shut out competitors and kept highly lucrative contracts for themselves through the systematic payment of bribes and kickbacks.  All told, the soccer officials are charged with conspiring to solicit and receive well over $150 million in bribes and kickbacks in exchange for their official support of the sports marketing executives who agreed to make the unlawful payments.

Most of the schemes alleged in the indictment relate to the solicitation and receipt of bribes and kickbacks by soccer officials from sports marketing executives in connection with the commercialization of the media and marketing rights associated with various soccer matches and tournaments, including FIFA World Cup qualifiers in the CONCACAF region, the CONCACAF Gold Cup, the CONCACAF Champions League, the jointly organized CONMEBOL/CONCACAF Copa América Centenario, the CONMEBOL Copa América, the CONMEBOL Copa Libertadores and the Copa do Brasil, which is organized by the Brazilian national soccer federation (CBF).  Other alleged schemes relate to the payment and receipt of bribes and kickbacks in connection with the sponsorship of CBF by a major U.S. sportswear company, the selection of the host country for the 2010 World Cup and the 2011 FIFA presidential election.

The Indicted Defendants

As set forth in the indictment, the defendants and their co-conspirators fall generally into three categories: soccer officials acting in a fiduciary capacity within FIFA and one or more of its constituent organizations; sports media and marketing company executives; and businessmen, bankers and other trusted intermediaries who laundered illicit payments.

Nine of the defendants were FIFA officials by operation of the FIFA statutes, as well as officials of one or more other bodies:

    Jeffrey Webb: Current FIFA vice president and executive committee member, CONCACAF president, Caribbean Football Union (CFU) executive committee member and Cayman Islands Football Association (CIFA) president.

    Eduardo Li: Current FIFA executive committee member-elect, CONCACAF executive committee member and Costa Rican soccer federation (FEDEFUT) president.

    Julio Rocha: Current FIFA development officer.  Former Central American Football Union (UNCAF) president and Nicaraguan soccer federation (FENIFUT) president.

    Costas Takkas: Current attaché to the CONCACAF president.  Former CIFA general secretary.

    Jack Warner: Former FIFA vice president and executive committee member, CONCACAF president, CFU president and Trinidad and Tobago Football Federation (TTFF) special adviser.

    Eugenio Figueredo: Current FIFA vice president and executive committee member.  Former CONMEBOL president and Uruguayan soccer federation (AUF) president.

    Rafael Esquivel: Current CONMEBOL executive committee member and Venezuelan soccer federation (FVF) president.

    José Maria Marin: Current member of the FIFA organizing committee for the Olympic football tournaments.  Former CBF president.

    Nicolás Leoz: Former FIFA executive committee member and CONMEBOL president.

            Four of the defendants were sports marketing executives:

    Alejandro Burzaco: Controlling principal of Torneos y Competencias S.A., a sports marketing business based in Argentina, and its affiliates.

    Aaron Davidson: President of Traffic Sports USA Inc. (Traffic USA).

    Hugo and Mariano Jinkis: Controlling principals of Full Play Group S.A., a sports marketing business based in Argentina, and its affiliates.

And one of the defendants was in the broadcasting business but allegedly served as an intermediary to facilitate illicit payments between sports marketing executives and soccer officials:

    José Margulies:  Controlling principal of Valente Corp. and Somerton Ltd.

The Convicted Individuals and Corporations

The following individuals and corporations previously pleaded guilty under seal:

On July 15, 2013, the defendant Daryll Warner, son of defendant Jack Warner and a former FIFA development officer, waived indictment and pleaded guilty to a two-count information charging him with wire fraud and the structuring of financial transactions.

On Oct. 25, 2013, the defendant Daryan Warner waived indictment and pleaded guilty to a three-count information charging him with wire fraud conspiracy, money laundering conspiracy and the structuring of financial transactions.  Daryan Warner forfeited over $1.1 million around the time of his plea and has agreed to pay a second forfeiture money judgment at the time of sentencing.

On Nov. 25, 2013, the defendant Charles Blazer, the former CONCACAF general secretary and a former FIFA executive committee member, waived indictment and pleaded guilty to a 10-count information charging him with racketeering conspiracy, wire fraud conspiracy, money laundering conspiracy, income tax evasion and failure to file a Report of Foreign Bank and Financial Accounts (FBAR).  Blazer forfeited over $1.9 million at the time of his plea and has agreed to pay a second amount to be determined at the time of sentencing.

On Dec. 12, 2014, the defendant José Hawilla, the owner and founder of the Traffic Group, the Brazilian sports marketing conglomerate, waived indictment and pleaded guilty to a four-count information charging him with racketeering conspiracy, wire fraud conspiracy, money laundering conspiracy and obstruction of justice.  Hawilla also agreed to forfeit over $151 million, $25 million of which was paid at the time of his plea.

On May 14, 2015, the defendants Traffic Sports USA Inc. and Traffic Sports International Inc. pleaded guilty to wire fraud conspiracy.

All money forfeited by the defendants is being held in reserve to ensure its availability to satisfy any order of restitution entered at sentencing for the benefit of any individuals or entities that qualify as victims of the defendants' crimes under federal law.

* * * *

The indictment unsealed today has been assigned to U.S. District Court Judge Raymond J. Dearie of the Eastern District of New York.

The indicted and convicted individual defendants face maximum terms of incarceration of 20 years for the RICO conspiracy, wire fraud conspiracy, wire fraud, money laundering conspiracy, money laundering and obstruction of justice charges.  In addition, Eugenio Figueredo faces a maximum term of incarceration of 10 years for a charge of naturalization fraud and could have his U.S. citizenship revoked.  He also faces a maximum term of incarceration of five years for each tax charge.  Charles Blazer faces a maximum term of incarceration of 10 years for the FBAR charge and five years for the tax evasion charges; and Daryan and Daryll Warner face maximum terms of incarceration of 10 years for structuring financial transactions to evade currency reporting requirements.  Each individual defendant also faces mandatory restitution, forfeiture and a fine.  By the terms of their plea agreements, the corporate defendants face fines of $500,000 and one year of probation.

The government's investigation is ongoing.

The government's case is being prosecuted by Assistant U.S. Attorneys Evan M. Norris, Amanda Hector, Darren A. LaVerne, Samuel P. Nitze, Keith D. Edelman and Brian D. Morris of the Eastern District of New York, with assistance provided by the Justice Department's Office of International Affairs and Organized Crime and Gang Section.

The Indicted Defendants:

ALEJANDRO BURZACO

Age:  50

Nationality: Argentina

AARON DAVIDSON

Age:  44

Nationality: USA

RAFAEL ESQUIVEL

Age:  68

Nationality: Venezuela

EUGENIO FIGUEREDO

Age:   83

Nationality: USA, Uruguay

HUGO JINKIS

Age:   70

Nationality: Argentina

MARIANO JINKIS

Age:   40

Nationality: Argentina

NICOLÁS LEOZ

Age:   86

Nationality: Paraguay

EDUARDO LI

Age:   56

Nationality: Costa Rica

JOSÉ MARGULIES, also known as José Lazaro

Age:   75

Nationality: Brazil

JOSÉ MARIA MARIN

Age:   83

Nationality: Brazil

JULIO ROCHA

Age:   64

Nationality: Nicaragua

COSTAS TAKKAS

Age:   58

Nationality: United Kingdom

JACK WARNER

Age:   72

Nationality: Trinidad and Tobago

JEFFREY WEBB

Age:   50

Nationality: Cayman Islands

The Convicted Defendants:

CHARLES BLAZER

Age:   70

Nationality: USA

JOSÉ HAWILLA

Age:   71

Nationality: Brazil

DARYAN WARNER

Age:   46

Nationality: Trinidad and Tobago, Grenada

DARYLL WARNER

Age:   40

Nationality: USA, Trinidad and Tobago

TRAFFIC SPORTS INTERNATIONAL INC.

Registered:  British Virgin Islands

TRAFFIC SPORTS USA INC.

Registered:  USA

E.D.N.Y. Docket Numbers:

United States v. Daryll Warner, 13 Cr. 402 (WFK)

United States v. Daryan Warner, 13 Cr. 584 (WFK)

United States v. Charles Blazer, 13 Cr. 602 (RJD)

United States v. José Hawilla, 14 Cr. 609 (RJD)

United States v. Traffic Sports International, Inc., 14 Cr. 609 (RJD)

United States v. Traffic Sports USA, Inc., 14 Cr. 609 (RJD)

United States v. Jeffrey Webb et al., 15 Cr. 252 (RJD)

Documents:

Webb et al. Indictment (12.25 MB)

Daryan Warner Information (320.77 KB)

Daryll Warner Information (2.26 MB)

Hawilla et al. Information (2.98 MB)

Charles Blazer Information (4.45 MB)

FIFA Graphic (490 KB)

[Forever Fulham]

http://www.justice.gov/opa/file/450211/download

[Forever Fulham]

I thought if any transaction that was completed in US dollars anywhere in the world could be charged by US prosecution. I could well be wrong. I couldn't care less who or how these people are brought to justice. As long as it's a fair trial that is.

No, that would be gross overreach.  Merely using a foreign currency, without more, wouldn't serve as sufficient basis.  But direct involvement in a RICO enterprise and using the U.S. banks, with a U.S. account, to further that conspiracy does, I think, sufficiently touch and concern to meet minimum thresholds for jurisdiction.

[Woolly Mammoth]

Here's the U.S. Justice Dept's Press Release of May 27, shedding more light onto the original indictments, the grounds, etc.  I'll try to find and post more details of the jurisdictional underpinnings, and readers can decide for themselves if the U.S. overreached.


FOR IMMEDIATE RELEASE
Wednesday, May 27, 2015
Nine FIFA Officials and Five Corporate Executives Indicted for Racketeering Conspiracy and Corruption

The Defendants Include Two Current FIFA Vice Presidents and the Current and Former Presidents of the Confederation of North, Central American and Caribbean Association Football (CONCACAF); Seven Defendants Arrested Overseas; Guilty Pleas for Four Individual Defendants and Two Corporate Defendants Also Unsealed

A 47-count indictment was unsealed early this morning in federal court in Brooklyn, New York, charging 14 defendants with racketeering, wire fraud and money laundering conspiracies, among other offenses, in connection with the defendants' participation in a 24-year scheme to enrich themselves through the corruption of international soccer.  The guilty pleas of four individual defendants and two corporate defendants were also unsealed today.

The defendants charged in the indictment include high-ranking officials of the Fédération Internationale de Football Association (FIFA), the organization responsible for the regulation and promotion of soccer worldwide, as well as leading officials of other soccer governing bodies that operate under the FIFA umbrella.  Jeffrey Webb and Jack Warner – the current and former presidents of CONCACAF, the continental confederation under FIFA headquartered in the United States – are among the soccer officials charged with racketeering and bribery offenses.  The defendants also include U.S. and South American sports marketing executives who are alleged to have systematically paid and agreed to pay well over $150 million in bribes and kickbacks to obtain lucrative media and marketing rights to international soccer tournaments.

The charges were announced by Attorney General Loretta E. Lynch, Acting U.S. Attorney Kelly T. Currie of the Eastern District of New York, Director James B. Comey of the FBI, Assistant Director in Charge Diego W. Rodriguez of the FBI's New York Field Office, Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI) and Special Agent in Charge Erick Martinez of the IRS-CI's Los Angeles Field Office.

Also earlier this morning, Swiss authorities in Zurich arrested seven of the defendants charged in the indictment, the defendants Jeffrey Webb, Eduardo Li, Julio Rocha, Costas Takkas, Eugenio Figueredo, Rafael Esquivel and José Maria Marin, at the request of the United States.  Also this morning, a search warrant is being executed at CONCACAF headquarters in Miami, Florida.

The guilty pleas of the four individual and two corporate defendants that were also unsealed today include the guilty pleas of Charles Blazer, the long-serving former general secretary of CONCACAF and former U.S. representative on the FIFA executive committee; José Hawilla, the owner and founder of the Traffic Group, a multinational sports marketing conglomerate headquartered in Brazil; and two of Hawilla's companies, Traffic Sports International Inc. and Traffic Sports USA Inc., which is based in Florida.

"The indictment alleges corruption that is rampant, systemic, and deep-rooted both abroad and here in the United States," said Attorney General Lynch.  "It spans at least two generations of soccer officials who, as alleged, have abused their positions of trust to acquire millions of dollars in bribes and kickbacks.  And it has profoundly harmed a multitude of victims, from the youth leagues and developing countries that should benefit from the revenue generated by the commercial rights these organizations hold, to the fans at home and throughout the world whose support for the game makes those rights valuable.  Today's action makes clear that this Department of Justice intends to end any such corrupt practices, to root out misconduct, and to bring wrongdoers to justice – and we look forward to continuing to work with other countries in this effort."

Attorney General Lynch extended her grateful appreciation to the authorities of the government of Switzerland, as well as several other international partners, for their outstanding assistance in this investigation.

"Today's announcement should send a message that enough is enough," said Acting U.S. Attorney Currie.  "After decades of what the indictment alleges to be brazen corruption, organized international soccer needs a new start – a new chance for its governing institutions to provide honest oversight and support of a sport that is beloved across the world, increasingly so here in the United States.  Let me be clear: this indictment is not the final chapter in our investigation." 

Acting U.S. Attorney Currie extended his thanks to the agents, analysts and other investigative personnel with the FBI New York Eurasian Joint Organized Crime Squad and the IRS-CI Los Angeles Field Office, as well as their colleagues abroad, for their tremendous effort in this case.

"As charged in the indictment, the defendants fostered a culture of corruption and greed that created an uneven playing field for the biggest sport in the world," said Director Comey.  "Undisclosed and illegal payments, kickbacks, and bribes became a way of doing business at FIFA.  I want to commend the investigators and prosecutors around the world who have pursued this case so diligently, for so many years."

"When leaders in an organization resort to cheating the very members that they are supposed to represent, they must be held accountable," said Chief Weber.  "Corruption, tax evasion and money laundering are certainly not the cornerstones of any successful business.  Whether you call it soccer or football, the fans, players and sponsors around the world who love this game should not have to worry about officials corrupting their sport.  This case isn't about soccer, it is about fairness and following the law.  IRS-CI will continue to investigate financial crimes and follow the money wherever it may lead around the world, leveling the playing field for those who obey the law."

The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.

The Enterprise

FIFA is composed of 209 member associations, each representing organized soccer in a particular nation or territory, including the United States and four of its overseas territories.  FIFA also recognizes six continental confederations that assist it in governing soccer in different regions of the world.  The U.S. Soccer Federation is one of 41 member associations of the confederation known as CONCACAF, which has been headquartered in the United States throughout the period charged in the indictment.  The South American confederation, called CONMEBOL, is also a focus of the indictment.

As alleged in the indictment, FIFA and its six continental confederations, together with affiliated regional federations, national member associations and sports marketing companies, constitute an enterprise of legal entities associated in fact for purposes of the federal racketeering laws.  The principal – and entirely legitimate – purpose of the enterprise is to regulate and promote the sport of soccer worldwide.

As alleged in the indictment, one key way the enterprise derives revenue is to commercialize the media and marketing rights associated with soccer events and tournaments.  The organizing entity that owns those rights – as FIFA and CONCACAF do with respect to the World Cup and Gold Cup, their respective flagship tournaments – sells them to sports marketing companies, often through multi-year contracts covering multiple editions of the tournaments.  The sports marketing companies, in turn, sell the rights downstream to TV and radio broadcast networks, major corporate sponsors and other sub-licensees who want to broadcast the matches or promote their brands.  The revenue generated from these contracts is substantial: according to FIFA, 70% of its $5.7 billion in total revenues between 2011 and 2014 was attributable to the sale of TV and marketing rights to the 2014 World Cup.

The Racketeering Conspiracy

The indictment alleges that, between 1991 and the present, the defendants and their co-conspirators corrupted the enterprise by engaging in various criminal activities, including fraud, bribery and money laundering.  Two generations of soccer officials abused their positions of trust for personal gain, frequently through an alliance with unscrupulous sports marketing executives who shut out competitors and kept highly lucrative contracts for themselves through the systematic payment of bribes and kickbacks.  All told, the soccer officials are charged with conspiring to solicit and receive well over $150 million in bribes and kickbacks in exchange for their official support of the sports marketing executives who agreed to make the unlawful payments.

Most of the schemes alleged in the indictment relate to the solicitation and receipt of bribes and kickbacks by soccer officials from sports marketing executives in connection with the commercialization of the media and marketing rights associated with various soccer matches and tournaments, including FIFA World Cup qualifiers in the CONCACAF region, the CONCACAF Gold Cup, the CONCACAF Champions League, the jointly organized CONMEBOL/CONCACAF Copa América Centenario, the CONMEBOL Copa América, the CONMEBOL Copa Libertadores and the Copa do Brasil, which is organized by the Brazilian national soccer federation (CBF).  Other alleged schemes relate to the payment and receipt of bribes and kickbacks in connection with the sponsorship of CBF by a major U.S. sportswear company, the selection of the host country for the 2010 World Cup and the 2011 FIFA presidential election.

The Indicted Defendants

As set forth in the indictment, the defendants and their co-conspirators fall generally into three categories: soccer officials acting in a fiduciary capacity within FIFA and one or more of its constituent organizations; sports media and marketing company executives; and businessmen, bankers and other trusted intermediaries who laundered illicit payments.

Nine of the defendants were FIFA officials by operation of the FIFA statutes, as well as officials of one or more other bodies:

    Jeffrey Webb: Current FIFA vice president and executive committee member, CONCACAF president, Caribbean Football Union (CFU) executive committee member and Cayman Islands Football Association (CIFA) president.

    Eduardo Li: Current FIFA executive committee member-elect, CONCACAF executive committee member and Costa Rican soccer federation (FEDEFUT) president.

    Julio Rocha: Current FIFA development officer.  Former Central American Football Union (UNCAF) president and Nicaraguan soccer federation (FENIFUT) president.

    Costas Takkas: Current attaché to the CONCACAF president.  Former CIFA general secretary.

    Jack Warner: Former FIFA vice president and executive committee member, CONCACAF president, CFU president and Trinidad and Tobago Football Federation (TTFF) special adviser.

    Eugenio Figueredo: Current FIFA vice president and executive committee member.  Former CONMEBOL president and Uruguayan soccer federation (AUF) president.

    Rafael Esquivel: Current CONMEBOL executive committee member and Venezuelan soccer federation (FVF) president.

    José Maria Marin: Current member of the FIFA organizing committee for the Olympic football tournaments.  Former CBF president.

    Nicolás Leoz: Former FIFA executive committee member and CONMEBOL president.

            Four of the defendants were sports marketing executives:

    Alejandro Burzaco: Controlling principal of Torneos y Competencias S.A., a sports marketing business based in Argentina, and its affiliates.

    Aaron Davidson: President of Traffic Sports USA Inc. (Traffic USA).

    Hugo and Mariano Jinkis: Controlling principals of Full Play Group S.A., a sports marketing business based in Argentina, and its affiliates.

And one of the defendants was in the broadcasting business but allegedly served as an intermediary to facilitate illicit payments between sports marketing executives and soccer officials:

    José Margulies:  Controlling principal of Valente Corp. and Somerton Ltd.

The Convicted Individuals and Corporations

The following individuals and corporations previously pleaded guilty under seal:

On July 15, 2013, the defendant Daryll Warner, son of defendant Jack Warner and a former FIFA development officer, waived indictment and pleaded guilty to a two-count information charging him with wire fraud and the structuring of financial transactions.

On Oct. 25, 2013, the defendant Daryan Warner waived indictment and pleaded guilty to a three-count information charging him with wire fraud conspiracy, money laundering conspiracy and the structuring of financial transactions.  Daryan Warner forfeited over $1.1 million around the time of his plea and has agreed to pay a second forfeiture money judgment at the time of sentencing.

On Nov. 25, 2013, the defendant Charles Blazer, the former CONCACAF general secretary and a former FIFA executive committee member, waived indictment and pleaded guilty to a 10-count information charging him with racketeering conspiracy, wire fraud conspiracy, money laundering conspiracy, income tax evasion and failure to file a Report of Foreign Bank and Financial Accounts (FBAR).  Blazer forfeited over $1.9 million at the time of his plea and has agreed to pay a second amount to be determined at the time of sentencing.

On Dec. 12, 2014, the defendant José Hawilla, the owner and founder of the Traffic Group, the Brazilian sports marketing conglomerate, waived indictment and pleaded guilty to a four-count information charging him with racketeering conspiracy, wire fraud conspiracy, money laundering conspiracy and obstruction of justice.  Hawilla also agreed to forfeit over $151 million, $25 million of which was paid at the time of his plea.

On May 14, 2015, the defendants Traffic Sports USA Inc. and Traffic Sports International Inc. pleaded guilty to wire fraud conspiracy.

All money forfeited by the defendants is being held in reserve to ensure its availability to satisfy any order of restitution entered at sentencing for the benefit of any individuals or entities that qualify as victims of the defendants' crimes under federal law.

* * * *

The indictment unsealed today has been assigned to U.S. District Court Judge Raymond J. Dearie of the Eastern District of New York.

The indicted and convicted individual defendants face maximum terms of incarceration of 20 years for the RICO conspiracy, wire fraud conspiracy, wire fraud, money laundering conspiracy, money laundering and obstruction of justice charges.  In addition, Eugenio Figueredo faces a maximum term of incarceration of 10 years for a charge of naturalization fraud and could have his U.S. citizenship revoked.  He also faces a maximum term of incarceration of five years for each tax charge.  Charles Blazer faces a maximum term of incarceration of 10 years for the FBAR charge and five years for the tax evasion charges; and Daryan and Daryll Warner face maximum terms of incarceration of 10 years for structuring financial transactions to evade currency reporting requirements.  Each individual defendant also faces mandatory restitution, forfeiture and a fine.  By the terms of their plea agreements, the corporate defendants face fines of $500,000 and one year of probation.

The government's investigation is ongoing.

The government's case is being prosecuted by Assistant U.S. Attorneys Evan M. Norris, Amanda Hector, Darren A. LaVerne, Samuel P. Nitze, Keith D. Edelman and Brian D. Morris of the Eastern District of New York, with assistance provided by the Justice Department's Office of International Affairs and Organized Crime and Gang Section.

The Indicted Defendants:

ALEJANDRO BURZACO

Age:  50

Nationality: Argentina

AARON DAVIDSON

Age:  44

Nationality: USA

RAFAEL ESQUIVEL

Age:  68

Nationality: Venezuela

EUGENIO FIGUEREDO

Age:   83

Nationality: USA, Uruguay

HUGO JINKIS

Age:   70

Nationality: Argentina

MARIANO JINKIS

Age:   40

Nationality: Argentina

NICOLÁS LEOZ

Age:   86

Nationality: Paraguay

EDUARDO LI

Age:   56

Nationality: Costa Rica

JOSÉ MARGULIES, also known as José Lazaro

Age:   75

Nationality: Brazil

JOSÉ MARIA MARIN

Age:   83

Nationality: Brazil

JULIO ROCHA

Age:   64

Nationality: Nicaragua

COSTAS TAKKAS

Age:   58

Nationality: United Kingdom

JACK WARNER

Age:   72

Nationality: Trinidad and Tobago

JEFFREY WEBB

Age:   50

Nationality: Cayman Islands

The Convicted Defendants:

CHARLES BLAZER

Age:   70

Nationality: USA

JOSÉ HAWILLA

Age:   71

Nationality: Brazil

DARYAN WARNER

Age:   46

Nationality: Trinidad and Tobago, Grenada

DARYLL WARNER

Age:   40

Nationality: USA, Trinidad and Tobago

TRAFFIC SPORTS INTERNATIONAL INC.

Registered:  British Virgin Islands

TRAFFIC SPORTS USA INC.

Registered:  USA

E.D.N.Y. Docket Numbers:

United States v. Daryll Warner, 13 Cr. 402 (WFK)

United States v. Daryan Warner, 13 Cr. 584 (WFK)

United States v. Charles Blazer, 13 Cr. 602 (RJD)

United States v. José Hawilla, 14 Cr. 609 (RJD)

United States v. Traffic Sports International, Inc., 14 Cr. 609 (RJD)

United States v. Traffic Sports USA, Inc., 14 Cr. 609 (RJD)

United States v. Jeffrey Webb et al., 15 Cr. 252 (RJD)

Documents:

Webb et al. Indictment (12.25 MB)

Daryan Warner Information (320.77 KB)

Daryll Warner Information (2.26 MB)

Hawilla et al. Information (2.98 MB)

Charles Blazer Information (4.45 MB)

FIFA Graphic (490 KB)

Thank you for taking the time to release the shortened version of your analysis.
That list of individuals, is the nearest you will get to Rogues Gallery. 

[H4usuallysitting]

Apparently Mr Blatter hasn't visited America or Canada for many a year.....come on Sepp mate - you've got nothing to hide.....have you

[HatterDon]

It may have something to do with money going through American banks or using american based servers to do the transactions. Their laws mean that using their infer structure is an offence in America or if it involves their citizens, ie if someone pays Blazer then that may be an offence too.

That's exactly what it is, and Mr. Watch knows that very well.

[Shredhead]

Apparently Mr Blatter hasn't visited America or Canada for many a year.....come on Sepp mate - you've got nothing to hide.....have you

He didn't have to with Jack Warner as head of CONCACAF

[Logicalman]

I thought if any transaction that was completed in US dollars anywhere in the world could be charged by US prosecution. I could well be wrong. I couldn't care less who or how these people are brought to justice. As long as it's a fair trial that is.

Spot on!!!

It matters not whether US institutions are involved in the transaction or not, for example, if Barclays in the UK provide actual dollars, or a dollar transactions, to someone else in the UK, then the US can assert jurisdiction, solely because they are using US dollars (that belong to the US Treasury) as the currency.



Nick,
Without wishing to rise to your bait, I would ask where the Political motivation comes from? This doesn't impact US Politics in any shape or form, or impact US standing with any other country at any level whatsoever, as it will be under any treaties the US has with other countries' law enforcement. That said, as above, the offence has been made out, now it will be up to the other countries to decide whether they wish to comply or resist the requests, remembering there is always the legal  quid-pro-quo to take into account.
This is not a matter of "a sport these people know very little about" it's all about the law, which they both know very much about, and have the nuts to actually take on FIFA, something that the EU seem very ambivalent towards, thus why FIFA have managed to get away for it for so long, I wonder why?

[Logicalman]

I thought if any transaction that was completed in US dollars anywhere in the world could be charged by US prosecution. I could well be wrong. I couldn't care less who or how these people are brought to justice. As long as it's a fair trial that is.

No, that would be gross overreach.  Merely using a foreign currency, without more, wouldn't serve as sufficient basis.  But direct involvement in a RICO enterprise and using the U.S. banks, with a U.S. account, to further that conspiracy does, I think, sufficiently touch and concern to meet minimum thresholds for jurisdiction.

FF,

The powers to act in this case fall under Extraterritorial Jurisdiction, and I believe are derived from the US Constitution, Article 1, Section 8.

The following text might be useful to determine such powers: https://www.fas.org/sgp/crs/misc/94-166.pdf and  https://www.law.cornell.edu/constitution/articlei.

Additionally, I have in the back of my mind that the following did expand/verify those powers to some degree: http://www.sec.gov/about/laws/wallstreetreform-cpa.pdf

[McBride78]

One did not know American law is now International law and they can "arrest" people from anywhere, or if not, smear officials without any evidence as you have outlibed above.  In most cases outside of the U.S. this would constitute a breach of civil liberties and would prejudice any proposed trial.

Of course, all their multi-billionaires gorging themselves with corruptly acquired gains are not under any scrutiny from this politically motivated investigation with absolutely no interest in benefitting football, a sport these people know very little about!

Nick hits this on the head with "politically motivated".  We can talk about all the boring details, but bottom line is our sitting President was embarrassed by FIFA and is not beyond using his office to retaliate.  He personally went to pitch the USA hosting the world cup and failed.  I believe he feels corrupt countries unfairly won the opportunity to host those games, and Barack's ego was not going to let that go lightly.  Long story short, FIFA sold those world cups and our president is using his office against them through the use of the executive branch of our government, which controls the IRS, the Justice Department, FBI, CIA, US Treasury among others.  While I am glad to see FIFA exposed, I do feel that we as a government have bigger problems and better things to do given the problems both here and globally.  I am curious as to how many resource the Prez has put on this...as it seems we have every agency working it.       

[terryr]

One did not know American law is now International law and they can "arrest" people from anywhere, or if not, smear officials without any evidence as you have outlibed above.  In most cases outside of the U.S. this would constitute a breach of civil liberties and would prejudice any proposed trial.

Of course, all their multi-billionaires gorging themselves with corruptly acquired gains are not under any scrutiny from this politically motivated investigation with absolutely no interest in benefitting football, a sport these people know very little about!

If you use US banks to pay bribes and launder money....you break US law.
The fact that you do it from the Caribbean or Switzerland makes no difference.
Thank god Americans have the guts to take on the untouchables....as for knowing nothing about the game, that sounds like the feeble FIFA attempt to deflect the issue. What difference does knowledge of the offside rule make when examining money laundering....?

[Woolly Mammoth]

It's about time the authorities, any authority caught up with the arrogant Blatter, and his motley crew who have all fallen off the back of a lorry. Totally Bankrupted of any moral fibre. He and they clearly thought that buying other countries votes, would keep them in power and continue to carry out their insidious activities undetected.
The carpet that they have previously swept damming evidence of their corrupt activities under must by now be enormous.
Fortunately, this Hoover across the Atlantic will sweep this Den of Inequity up, and drop the whole outfit into the slammer, and re settle them on one of those chain gangs in the Deep South.  

[Nick Bateman]

One did not know American law is now International law and they can "arrest" people from anywhere, or if not, smear officials without any evidence as you have outlibed above.  In most cases outside of the U.S. this would constitute a breach of civil liberties and would prejudice any proposed trial.

Of course, all their multi-billionaires gorging themselves with corruptly acquired gains are not under any scrutiny from this politically motivated investigation with absolutely no interest in benefitting football, a sport these people know very little about!

Nick hits this on the head with "politically motivated".  We can talk about all the boring details, but bottom line is our sitting President was embarrassed by FIFA and is not beyond using his office to retaliate.  He personally went to pitch the USA hosting the world cup and failed.  I believe he feels corrupt countries unfairly won the opportunity to host those games, and Barack's ego was not going to let that go lightly.  Long story short, FIFA sold those world cups and our president is using his office against them through the use of the executive branch of our government, which controls the IRS, the Justice Department, FBI, CIA, US Treasury among others.  While I am glad to see FIFA exposed, I do feel that we as a government have bigger problems and better things to do given the problems both here and globally.  I am curious as to how many resource the Prez has put on this...as it seems we have every agency working it.       

Precisely.  And to respectfully answer both FF and Logicalman's points, the U.S. government were still seething about Putin's peace deal with Syria and created a conflict in Ukraine and wanted to strip Russia of hosting the next World Cup, or at least organize a mass boycott.

Otherwise one would not hear a peep out of Obama and his cronies on a matter they have NEVER been involved in before.

[Nick Bateman]

And to further reply to FF, I am not defending Blatter nor FIFA but I see double standards afoot.  Why not investigate the corruption in UEFA favouring the so-called G14 or even how the Premier League instruct referees to help certain teams, week in, week out??!