After indicting 14 soccer officials, u.s. vows to end graft in fifa – the new york times cases of money laundering

With billions of dollars at stake, morocco, egypt and south africa jockeyed in 2004 for the privilege of hosting soccer’s most prestigious tournament, the world cup. The outcome hinged on a decision by the executive committee of FIFA, soccer’s governing body, and a single vote could tip the decision.

And at least one vote, prosecutors said wednesday, was for sale.

Jack warner, a committee member from trinidad and tobago, shopped his ballot to the highest bidder, federal prosecutors said. In early 2004, he flew to morocco, where a member of that country’s bid committee offered him $1 million. But south africa had a sweeter deal, offering

$10 million to a group that mr. Warner controlled, prosecutors said. He voted for south africa. South africa got the 2010 world cup.

And mr. Warner got his

$10 million payout, much of which prosecutors said he diverted for his personal use.Cases of money laundering

For decades, that was how business was done in international soccer, american officials said wednesday as they announced a sweeping indictment against 14 soccer officials and marketing executives who they said had corrupted the sport through two decades of shadowy dealing and $150 million in bribes. Authorities described international soccer in terms normally reserved for mafia families or drug cartels, and brought charges under racketeering laws usually applied to such criminal organizations.

Hours after swiss authorities arrived unannounced at a zurich hotel and arrested top FIFA officials early wednesday morning, the justice department and prosecutors for the eastern district of new york forcefully declared that their investigation had only just begun and pledged to rid the international soccer organization of systemic corruption. Photo

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cases of money laundering

Graphic: A hemisphere of soccer corruption

Though many of the charges revolve around activities that occurred abroad, ms. Lynch said she never had qualms about bringing charges in the united states. United states law allows for extradition and prosecution of foreign nationals under a number of statutes, and court documents say that the activity affected interstate and foreign commerce, and took place in part in new york’s eastern district.

Ms. Lynch compared the FIFA investigation to cases involving mafia members in rome or sicily. In this case, she said, FIFA officials used the american banking system as part of their scheme. “they clearly thought the U.S. Was a safe financial haven for them,” she said.

FIFA has been dogged by accusations of corruption for years, but the organization and its top officials typically avoided any punishment. That has been especially true for sepp blatter, the organization’s longtime president, who is widely regarded as the most powerful man in sports.Cases of money laundering mr. Blatter was not named in the federal indictment, and after FIFA provisionally suspended the officials who were named, he issued a statement saying the investigations would make the sport stronger.

But american authorities were adamant that they were not finished. The indictment represented “the beginning of our effort, not the end,” said kelly T. Currie, acting united states attorney for the eastern district of new york. Neither he nor ms. Lynch would comment on whether they were investigating mr. Blatter. But one federal law enforcement official said mr. Blatter’s fate would “depend on where the investigation goes from here.” photo

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Others were more straightforward. When FIFA was considering which country would host the 2006 world cup, mr. Warner sent a relative to a paris hotel room to collect a briefcase filled with cash in $10,000 stacks from a south african bid-committee official, according to the indictment.Cases of money laundering

In 2011, an associate running for FIFA president wired about $360,000 to an account controlled by mr. Warner, who, in turn, arranged for the associate to give a stump speech to caribbean soccer officials at a hyatt regency in trinidad. When the speech concluded, mr. Warner told the officials that a “gift” awaited them in a hyatt conference room. The gift: envelopes containing $40,000 in cash from the associate, one for each of the member organizations.

The day after the cash payments were distributed, mr. Warner called the caribbean officials to a meeting, angered that one of them had alerted a higher-up to the payments. “there are some people here who think they are more pious than thou,” he said, according to the indictment. “if you’re pious, open a church, friends. Our business is our business.” video FIFA on arrests of leading officials

Even facilitating the bribes was lucrative: one man who helped funnel money between officials and those seeking officials’ favor said in 2014 that the charge for such services was a $150,000 annual fee and a 2 percent commission per payment.Cases of money laundering

Prosecutors built their case with help from a former FIFA executive and new york resident, chuck blazer, who secretly pleaded guilty in federal court in 2013. Mr. Blazer, who was close to mr. Warner, forfeited $1.9 million when he entered his guilty plea and agreed to make a second payment at sentencing. Mr. Blazer’s lawyer, eric corngold, declined to comment.

Prosecutors also went after mr. Warner’s sons, daryan and daryll, filing a case against them in 2012. In 2013, each son pleaded guilty: daryll to wire fraud and illegally structuring financial transactions, and daryan to the same structuring charge, along with wire fraud and money laundering. Daryan forfeited $1.1 million and, like mr. Blazer, agreed to make another payment at sentencing.

José hawilla, who owned an influential brazilian sports-marketing group, pleaded guilty to racketeering conspiracy and other charges late last year, and agreed to pay $151 million.Cases of money laundering each of those related cases was sealed until wednesday.


FIFA indictments

The indictments against soccer officials and sports marketing executives announced on wednesday.

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The soccer officials charged are jeffrey webb, eduardo li, eugenio figueredo, jack warner, julio rocha, costas takkas, rafael esquivel, josé maria marin and nicolás leoz.

“FIFA welcomes actions that can help contribute to rooting out any wrongdoing in football,” the organization said in a statement.

Charges were also made against the sports-marketing executives alejandro burzaco, aaron davidson, hugo jinkis and mariano jinkis. Authorities also charged josé margulies as an intermediary who facilitated illegal payments.

It will most likely be months before the people arrested overseas will appear in brooklyn federal court, given the length of normal extradition proceedings.Cases of money laundering

While the 2018 world cup in russia and the 2022 world cup in qatar were not mentioned in the american charges, the office of the attorney general of switzerland said wednesday that it had opened a criminal investigation into how those hosts were selected.

For ms. Lynch, the announcement of the charges capping the long investigation was bittersweet. She was traveling in south africa when the country learned it would host the 2010 world cup. Citizens were ecstatic with the hope that the world’s most famous soccer tournament would put south africa back on the sporting map and bring the fractured nation together.

“I remember that vividly,” she said. “to learn that was engendered by corruption was truly saddening.”