Bribe upon bribe upon bribe: how Fifa and its cronies carved up football
By David Conn From The Guardian UK
• US district court alleges massive corruption including $10m payment
• American Chuck Blazer allegedly received $750,000 bribe
• Concacaf president Jeffrey Webb accused over alleged $3m bribe
The case against Jack Warner
The US district court alleges massive corruption by Warner within its prosecution of 14 people, including serving and former high-ranking Fifa officials and sports marketing company executives alleged to have paid bribes.
As president from 1990 of the Confederation of North, Central America and Caribbean Association Football (Concacaf) and a Fifa executive committee (exco) member, Warner from the early 1990s “began to leverage his influence and exploit his official positions for personal gain”, the indictment alleges. His demand for and receipt of bribes, the authorities allege, was a key part of a 24-year racketeering and bribery conspiracy, dating from 1991 to 2015, which led to “endemic corruption” of Fifa itself.
Most extraordinary in a 164-page indictment is an alleged $10m payment transferred by Fifa to Caribbean Football Union (CFU) accounts that Warner controlled, in return for Warner, Chuck Blazer and an unnamed third Fifa exco “conspirator” voting for South Africa to host the 2010 World Cup. The indictment alleges the South African government initially offered to make this payment to the CFU, with a stated purpose to “support the African diaspora”.
The latest news and updates on the crisis at Fifa, where Sepp Blatter is under increasing pressure to
From this $10m, Warner is alleged to have agreed to pay $1m to Blazer – who, according to the US Department of Justice, has pleaded guilty to this and a series of other financial frauds and crimes.
Ultimately, the South African government is said to have been unable to pay the $10m, so in early 2008, four years after the offer was made, the money is alleged to have been paid by Fifa. Three payments are itemised: for $616,000, then $1.6m, then the balance, $7.784m, wired from a Fifa account in Switzerland to CFU and Concacaf Bank of America accounts controlled by Warner.
The indictment alleges: “Soon after receiving these wire transfers, the defendant Jack Warner caused a substantial portion of the funds to be diverted for his personal use,” which included laundering the money through intermediaries.
Warner is accused of agreeing to pay Blazer’s $1m share in instalments “as he had already spent it”. In the event, he paid Blazer $750,000, in three instalments between 2008 and 2011, allegations to which Blazer is said to have pleaded guilty.
The indictment also charges Warner over the infamous payments of $40,000 packs of cash to Caribbean delegates in 2011 by Mohamed bin Hammam, who was challenging Sepp Blatter for the Fifa presidency. Warner, discovering that one official had called Blazer at Concacaf to tell him about the payments, is alleged to have become angry and said: “There are some people here who think they are more pious than thou. If you’re pious, open a church, friends. Our business is our business.”
Warner, whose sons Daryll and Daryan have pleaded guilty to separate charges, has insisted he is innocent and has not been questioned in relation to the indictment.
The case against Jeffrey Webb
Webb, based in the Cayman Islands, became Concacaf president, a Fifa vice-president and exco member in May 2012, after Warner resigned following the scandal over the $40,000 payments.
Webb has been seen as a clean-up figure and potential successor to Sepp Blatter for the Fifa presidency but the US indictment accuses him of brazen corruption, being paid bribes that went into building a swimming pool at his house. The bribes are alleged to have been paid by the sports marketing company Traffic USA, in return for being awarded TV and marketing rights for the Caribbean countries’ qualifying matches in the 2018 and 2022 World Cups. Webb is said to have wanted a $3m bribe in return for ensuring the CFU did that deal with Traffic. The indictment alleges Aaron Davidson, the president of Traffic Sports USA, another of the 14 men charged, knew about the bribe.
The $3m payment is alleged to have been arranged with another of the defendants, Costas Takkas, a UK citizen and the general secretary of the Cayman Islands Football Association, who is described as a close associate of Webb. Takkas is said to have been paid by instalments into various accounts, including in the Cayman Islands, intended it is alleged, “to conceal the fact the defendant Jeffrey Webb was the beneficiary of the payment”.
Takkas is accused of wiring some of the money to an account of his in Miami. Then, the indictment alleges: “Takkas subsequently transferred the funds to an account in the name of a swimming pool builder at United Community Bank in Blairsville, Georgia [USA], for the benefit of the defendant Jeffrey Webb, who was having a pool built at his residence.”
Webb is understood to have been arrested by Swiss authorities in Zurich for extradition to the US, where authorities have stressed defendants are innocent until proven guilty in court.
The case against Chuck Blazer
Blazer, the Concacaf general secretary for 21 years between 1990 and 2011, is said to have pleaded guilty in 2013 to 10 counts including racketeering conspiracy, wire fraud conspiracy, money laundering conspiracy, income tax evasion from 2005-2010, and failure to file reports of his foreign bank accounts. The Department of Justice said he faces a maximum 20 years’ incarceration in a US prison for the conspiracies, 10 for the failure to declare his foreign bank accounts, and five years for the tax evasion charges.
Blazer was accused of soliciting a bribe for Warner as long ago as 1992, from the bid committee seeking to have Morocco selected as the host for the 1998 World Cup. Warner is said to have accepted the offer of a bribe in return for voting for Morocco, and Blazer chased it up for him. The payment was ultimately made, the indictment says, but in fact Fifa’s exco voted for France to host the 1998 tournament.
Blazer is said to have also pleaded guilty to receiving $750,000 from Jack Warner, part of Blazer’s agreed $1m share of the $10m paid to Warner’s accounts by Fifa itself, after Warner agreed to vote for South Africa to host the 2010 World Cup.
The charge of failing to declare a foreign bank account relates to money Blazer held during 2010 at First Caribbean International Bank, in the Bahamas. He has already forfeited $1.9m when he pleaded guilty, and is due to pay more to the authorities when he is sentenced.
The case against Traffic and its owner, José Hawilla
José Hawilla, who founded and owned the sports marketing company Traffic, based in São Paulo, is said to have pleaded guilty to paying bribes relating to the sponsorship of the Brazil national team by “a major US sportswear company”. The deal, under which the Brazil Football Federation (CBF) would be paid $160m over 10 years, is said to have been agreed in 1996. That was the year that Traffic brokered the famous sponsorship by Nike of the CBF but Nike is not actually named in the papers.
The indictment alleges Hawilla was paid a percentage of the $160m, which bought the sportswear company exclusive rights to make Brazil shirts, clothing and other equipment. Hawilla is said to have pleaded guilty to paying a high-ranking, unnamed CBF official half his commission, totalling “in the millions”, by way of bribe and kickback for sealing the deal.
Nike itself issued a statement in response to the revelations, saying: “Nike believes in ethical and fair play in both business and sport, and strongly opposes any form of manipulation or bribery. We have been cooperating, and will continue to cooperate, with the authorities.”
For more on this story and video go to: http://www.theguardian.com/football/2015/may/27/fifa-executives-charges-jack-warner
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FIFA Corruption: Who are the officials involved, and what charges do they face?
By Polly Mosendz From Newsweek
A combination photo shows eight of the nine football officials indicted for corruption charges in these file photos. From L-R: (top row) then President of the Brazilian Football Confederation Jose Maria Marin, President of the Venezuelan Football Federation Rafael Esquivel, President of Costa Rica’s Football Federation Eduardo Li, then President of South American Football Confederation CONMEBOL Nicolas Leoz, (bottom row) then President of the Nicaraguan Football Federation Julio Rocha, then Acting President of CONMEBOL Eugenio Figueredo, then FIFA Executive member Jack Warner, and President of Confederation of North, Central America and Caribbean Association Football CONCACAF Jeffery Webb. REUTERS
On Wednesday, Swiss authorities arrested seven officials of FIFA, international governing body of association football, as part of a large bust by the United States attorney’s office. In total, 14 people with business connections to FIFA were charged with racketeering, wire fraud and other charges related to corruption. The alleged illegal acts spanned 24 years.
In addition to corrupt FIFA officials, the attorney’s office alleges sports marketing executives were involved in the bribery system and that over $150 million in bribes exchanged hands for media and marketing rights for various soccer tournaments.
Each of the 14 individuals charged face a maximum 20 years in prison for racketeering conspiracy, wire fraud conspiracy, wire fraud, money laundering conspiracy, money laundering and obstruction of justice. Additionally, they face restitution, forfeiture of funds and fines.
1. Jeffrey Webb, 50, Cayman Islands
Webb is the current president of the Confederation of North, Central America and Caribbean Association Football (CONCACAF), which is under FIFA and headquartered in the United States. He also served on the Caribbean Football Union executive committee and as the president of the Cayman Islands Football Association (CIFA). He is charged with racketeering and bribery, and he was among those arrested in Zurich at the Baur au Lac hotel.
Strangely, Webb has a history of fighting corruption inside FIFA.
2. Jack Warner, 72, Trinidad and Tobago
The defendant is the former president of CONCACAF and FIFA vice president. He served as a special adviser to the Trinidad and Tobago Football Federation. He is charged with racketeering and bribery. He had been suspected of corruption, though ethics proceedings were dropped against him in 2011 when he retired.
Warner’s sons Daryll and Daryan Warner waived indictment and pled guilty in July and October of 2013, respectively. Their charges were unsealed on Wednesday.
Daryll Warner, 40, was a FIFA development officer. He pled guilty to two counts: wire fraud and corrupted structuring of financial transactions.
Daryan Warner, 46, was found guilty of three counts: wire fraud conspiracy, money laundering and corrupted structuring of financial transactions. He forfeited $1.1 million at the time of his plea and will pay a second, undisclosed amount at the time of his sentencing.
Both sons face maximum sentences of 10 years in prison.
3. Eduardo Li, 56, Costa Rica
Li was an executive committee member for FIFA, a member of CONCACAF and the president of the Costa Rican soccer federation.
4. Julio Rocha, 64, Nicaragua
Rocha served as the current FIFA development officer and was previously president of the Central American Football Union and the Nicaraguan soccer federation.
5. Costa Takkas, 58, United Kingdom
A former CIFA general secretary, Takkas served as the current attaché to the CONCACAF president.
6. Eugenio Figueredo, 83, United States, Uruguay
Previously the president of the South American Football Confederation, also known as CONMEBOL, and the Uruguayan soccer federation, Figueredo is the current vice president of FIFA and an executive committee member. He was previously accused of soliciting bribes in exchange for his vote in the 2018 and 2022 World Cups.
He faces a maximum sentence of 10 years for a charge of naturalization fraud. He could have his U.S. citizenship revoked as a result. Additionally, his tax charges could result in a maximum sentence of five years’ incarceration each.
7. Rafael Esquivel, 68, Venezuela
Esquivel is a CONMEBOL executive committee member and the president of the Venezuelan soccer federation.
8. José Maria Marin, 83, Brazil
A current member of the FIFA organizing committee for the Olympics, Marin was also the president of the Brazilian Football Confederation.
9. Nicolás Leoz, 86, Paraguay
A former executive committee member of FIFA and the president of CONMEBOL. He resigned in 2013 and was previously accused of taking brings in the 1990s.
He is accused of one of the stranger bribes: A British official claims Leoz attempted to exchange his 2018 World Cup vote for knighthood. Leoz is not a knight.
10. Alejandro Burzaco, 50, Argentina
Burzaco was the controlling principal of Torneos y Competencies, a sports marketing business in Argentina.
11. Aaron Davidson, 44, USA
Davidson is president of Traffic Sports USA, a corporate defendant that pled guilty. Jose Hawilla, 71, who owns the company, also pled guilty.
12. Hugo Jinkis, 70, Argentina
Jinkis is the controlling principal of Full Group S.A., a sports marketing business in Argentina.
13. Mariano Jinkis, 40, Argentina
Also a controlling principal of Full Play Group S.A. and son of Hugo.
14. José Margulies, 75, Brazil. Alias: José Lazaro
A part of the broadcasting business, Marguiles served as controlling principal of Valente Corp and Somerton Ltd. He is charged with acting “as an intermediary to facilitate illicit payments between sports marketing executives and soccer officials,” the attorney’s office said.
Additionally, there were several cases in which the FIFA linked individual or corporation pled guilty. These cases were unsealed on Wednesday.
Charles Blazer, 70, was one of the longest-serving general secretaries for CONCACAF and worked as the U.S. representative to the FIFA executive committee. He pled guilty to 10 counts, including racketeering, wire fraud, money laundering, income tax evasion and more. He forfeited $1.9 million as a result of his crimes as well as another undisclosed sum at the time of his sentencing. He could receive 15 years in prison.
Two of Hawilla’s companies, Traffic Sports International Inc. and Traffic Sports USA Inc., were corporate defendants that pled guilty. They link Aaron Davidson to the corruption charges. Hawilla was found guilty of racketeering, wire fraud, money laundering and obstruction of justice. He forfeited $151 million. His companies pled guilty to wire fraud. The companies each face a fine of $500,000 and a year of probation.
All of the money forfeited is being held in reserve, the attorney’s office said.
For more on this story go to: http://www.newsweek.com/fifa-corruption-who-are-officials-involved-and-what-charges-do-they-face-336038
Maradona: FBI have exposed the truth about Fifa
By Mark Doyle From GOAL
The former Argentina captain and head coach feels that the money earned by those accused of accepting bribes should be invested in a training camp for African children
Diego Maradona says the arrest of Fifa officials on corruption charges proves that he was not “crazy” to consistently question football’s governing body.
The former Argentina international, who guided his country to World Cup glory in 1986, has long been outspoken in his criticism of the organisation, which has been rocked by allegations that seven members were guilty of accepting bribes over a 24-year period dating back to 1991.
Maradona now feels vindicated by the indictments issued by the United States Justice Department as a result of an enquiry into Fifa’s affairs by the Federal Bureau of Investigation (FBI) and the Internal Revenue Service (IRS), and queried whether Blatter can be re-elected at Friday’s presidential vote in light of the corruption scandal.
“People said I was crazy,” the World Cup winner told Radio La Red. “Today the FBI revealed the truth.
The Americans did an impeccable job and now people have to explain what’s been happening. The good will remain and I will take care of the bad personally!
“The money they earn ought to be used to build a training camp for African children. Fifa has reserves of $1.5 billion [£977m] and there are players who earn no more than $150 [£97].
“Today there is no football, there is no transparency. Just lie to people and put on a show to re-elect Blatter.
“Now we’ll see if he gets re-elected after everything that happened. Where was Blatter when all this was going on?
“We want a man of football to be in charge. They came and tried to convince me with money, but I earn my money by working, not taking people for a ride.”
Blatter, who has branded the arrests as “unfortunate”, is bidding for a fifth term as Fifa president, having been re-elected four times since first coming to power in 1998.
The 79-year-old’s only challenger for the role is Prince Ali Bin Al Hussein of Jordan.
