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US, Swiss Timed FIFA Raids for Maximum Effect

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US, Swiss Timed FIFA Raids for Maximum Effect Sports FRIDAY, MAY 29, 2015 45 Blazer’s plea seems key to investigation NEW YORK: Former FIFA executive committee member Chuck Blazer appears to have provided key information that has been central to the Justice Department’s soccer corruption investi- gation, linking other officials in the Americas to a series of schemes. When indictments were unsealed Wednesday charg- ing nine soccer officials and five other men with racketeering, money laundering and wire fraud related to bribes and kick- backs stretching back more than two decades, the US govern- ment revealed Blazer pleaded guilty 1 1/2 years ago. Prosecutors also announced two sons of former FIFA Vice President Jack Warner pleaded guilty. Information from the three men appears to have been cen- tral to the Justice Department’s investigations. Much of the money passed through US banks, giving federal officials the power to go after offenders from around the world. “All of these defendants abused the US financial system and violated US law,” Attorney General Loretta E. Lynch said. The longtime No. 2 official in soccer’s North and Central American and Caribbean region, Blazer is known for his large belly, bushy beard, theatrical lifestyle and adeptness at gaining a voice for the US among the sport’s international power brokers. He also is known at Mr. 10 Percent, for his employment contracts that included 10 percent commissions on any deals he negotiated. Federal prosecutors revealed the Santa Claus lookalike pleaded guilty on Nov. 25, 2013, to six counts of income tax evasion and one count each of racketeering conspiracy, wire fraud conspiracy, money laundering conspiracy and willful fail- ZURICH: FIFA President Sepp Blatter delivers a speech during the opening ceremony of the 65th FIFA Congress in Zurich ure to file a report of foreign bank and financial accounts. yesterday. UEFA president Michel Platini confronted FIFA leader Sepp Blatter and called on him to stand down because Prosecutors said Blazer received $750,000 from the $10 mil- of corruption scandals engulfing world football. Blatter refused and Platini made a public appeal for member nations to lion Warner got as a bribe after the pair voted for South Africa vote against Blatter for the FIFA presidency in an election today. — AFP to become the 2010 World Cup host. They also revealed he did not file a U.S. tax return for six straight years. Blazer agreed to forfeit about $1.95 million to the govern- ment, which called it a portion of what Blazer had received in US, Swiss timed FIFA bribes, kickbacks and unauthorized World Cup ticket sales. Blazer also agreed to pay a second amount that will be deter- mined at the time of his sentencing. raids for maximum effect Pleaded guilty At the same time, they also announced Daryan Warner BERN: For months, American and Swiss would strike on Wednesday, conduct- Meanwhile, US prosecutors are going pleaded guilty to wire fraud conspiracy, money laundering and investigators worked in secret to pre- ing dawn arrests at the luxury Baur au after 14 people - nine current and for- structuring - making bank deposits below $10,000 to avoid pare for the raids that would shake the Lac Hotel and raiding FIFA’s Zurich mer FIFA officials, four sports marketing reporting requirements - related to scalping tickets for the soccer world. headquarters to seize electronic and executives and an accused intermediary 2006 and 2010 Word Cups. Daryll Warner pleaded guilty to They knew that the moment to strike paper documents. - in corruption allegations spanning wire fraud and structuring in relation to obtaining a mortgage would come when FIFA, the sport’s gov- “It was quite important to have this more than two decades and involving for a Miami condominium. erning body, held its annual congress in coordination between the arrests on sums in excess of $100 million. Seven The Warners appeared to have then provided information Zurich, gathering all of its top officials - the one side for the American proce- were taken into custody in Zurich on to the investigators. Police in Trinidad said Wednesday that including the main suspects in a far- dure, and the other side to get into FIFA Wednesday. Jack Warner was spending a night in jail after surrendering to reaching US corruption probe. and get all of the interesting data and Unlike their US counterparts, Swiss face an arrest warrant issued at the request of US authorities. Any leak could have given the game information that we are looking for,” he prosecutors aren’t yet investigating the Earlier in the day, a judge set bail at 2.5 million Trinidadian dol- away, allowing international soccer offi- said. For their part, Swiss prosecutors possibility of bribery in the allocation of lars, or about $395,000. US prosecutors will no doubt attempt cials to scramble out of Switzerland or decided to act after the complaint from the 2018 and 2022 World Cups. Instead, to pressure the newly indicted to admit guilt and provide evi- time to destroy important evidence FIFA was backed up by what Marty their probe - dubbed ‘Darwin’ - is exam- dence of additional malfeasance in soccer’s governing bodies. before authorities could seize it. “It was described as “rather interesting bank ining whether members of the execu- FIFA President Sepp Blatter, accused by some of fostering a a months-long planning. It was quite documents” that investigators had tive committee acted in the best inter- culture of corruption, has not been charged. An NYU business intense to try to find out what is the obtained in recent months. est of FIFA. graduate, Blazer coached his son’s club in New Rochelle, joined best moment,” Andre Marty, “This led to the fact that we were Blatter isn’t one of those under local and regional soccer organizations and became executive spokesman for the Swiss attorney gen- convinced that we have to proceed investigation in the Swiss probe, Marty vice president for the US Soccer Federation from 1984-86, Now eral’s office, told The Associated Press with these criminal procedures,” he told said. “As we are speaking Mr. Sepp 70, Blazer served as CONCACAF’s secretary general from 1990 late Wednesday, hours after the raids. the AP. Blatter is neither under investigation until 2011 under Warner and was a FIFA exco member from “It was exactly today that most of the nor is he one of the persons we would 1997 until 2013. He left his jobs after going public with corrup- people of interest to the US investiga- Seven in custody like to talk to tomorrow,” he said. But he tion allegations against Warner. tion and to the Swiss investigation are Prosecutors planned to interview 10 added that this could change. still in Switzerland.” members of the FIFA executive commit- Switzerland has been trying in recent Compensation The dual investigations have shaken tee who were already members in 2010, years to shed its reputation as a loca- A CONCACAF integrity committee harshly criticized Blazer FIFA, which has been dogged by cor- when the vote on who was to host the tion for secret financial dealings; for in April 2013. It claimed he received more than $20.6 million in ruption claims. FIFA president Sepp 2018 and 2022 World Cups occurred, he example, it now cooperates with other compensation from CONCACAF from 1996 to 2011, caused the Blatter has sought to manage the alle- said. Marty declined to name them, but countries investigating alleged tax federation to subsidize rent on his New York residence, to pur- gations, going so far as to file a criminal a review of the FIFA executive commit- cheats suspected of hiding money in chase apartments in Miami and to sign purchase agreements complaint against “unknown persons” tee members present in 2010 and now Swiss accounts. and made down payments on apartments at the Atlantis resort last November. That move followed produces 10 names: Michel D’Hooghe “Be assured that the office of the in the Bahamas.” The report also said Blazer used CONCACAF then-FIFA ethics prosecutor Michael of Belgium, Jacques Anouma of Ivory attorney general won’t hesitate to funds to buy a $48,000 Hummer. From 2004-11, Blazer and Garcia’s protest at how FIFA handled his Coast, Marios Lefkaritis of Cyprus, Angel investigate (anyone),” said Marty. “With other senior CONCACAF executives charged more than $26 investigation into wrongdoing during Maria Villar of Spain, Senes Erzik of these criminal procedures we are trying million in business expenses to Blazer’s personal American the votes to host of the 2018 and 2022 Turkey, Worawi Makudi of Thailand, Issa to underline the efforts of the Swiss Express cards. One CONCACAF employee said Blazer encour- World Cup - which went to Russia and Hayatou of Cameroon, Hany Abo Rida authorities in the fight against corrup- aged the use of his cards because he wanted to collect Qatar. Marty insisted that FIFA wasn’t of Egypt, Vitaly Mutko of Russia and tion - international corruption even - American Express membership points.—AP tipped off that law enforcement officials Rafael Salguero of Guatemala. and money laundering,” he said. — AP.
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