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  • Swiss bank to pay $79 million to settle money laundering charges

    Financial Crimes

    On May 27, the DOJ announced it had entered into a three-year deferred prosecution agreement with a Swiss bank charged with conspiring to commit money laundering, in which the bank agreed to pay more than $79 million after admitting that it “conspired to launder over $36 million in bribes through the United States to soccer officials” in exchange for broadcasting rights to international soccer matches. According to the DOJ, between February 2013 and May 2015, the bank, through a former bank relationship manager (who pleaded guilty in June 2017 for his role in the scheme and was sentenced last November), conspired with sports marketing executives to launder at least $36 million in bribes through the U.S. in order to “conceal the true nature of the payments and promote the fraud.” During this period, the DOJ claimed the bank’s anti-money laundering (AML) controls “failed to detect or prevent money laundering transactions related to the bribery schemes,” and that had the former bank relationship manager’s supervisors or compliance personnel conducted meaningful due diligence they would have been alerted to “multiple, significant red flags, including facially false contracts, payments to third parties at the direction of a [soccer federation] official, and services purportedly rendered by shell corporations—all of which would have alerted the [b]ank to the bribery, money laundering or other illegal activity.” The DOJ further noted that the bank admitted it was aware that the former bank relationship manager’s clients’ accounts were associated with international soccer—an area “generally understood to involve high corruption risks”—but still directed these accounts to be fast tracked in the hopes of obtaining lucrative business.

    The terms outlined in the deferred prosecution agreement are based on several factors, the DOJ stated, including the bank’s prior criminal history and the fact that the bank failed to voluntarily disclose the conduct and played a critical rule in the scheme for more than two years. The DOJ further noted that the bank did not receive any cooperation credit because it made misleading representations about relevant facts in the case, which hindered the investigation, and failed to provide all evidence pertaining to the involvement of senior management. However, the bank did receive some credit for making significant efforts to remediate its compliance program and spent $112 million on a three-year AML initiative designed to upgrade all accounts held by the bank, not just high-risk accounts. Under the terms of the agreement, the bank will pay a fine of roughly $43.3 million and forfeit approximately $36.4 million.

    Financial Crimes DOJ Of Interest to Non-US Persons Anti-Money Laundering Bribery

  • Former Swiss Bank Executive Pleads Guilty in FIFA Investigation

    Financial Crimes

    On June 15, the U.S. Attorney’s Office for the Eastern District of New York announced that a citizen of Argentina and a former managing director of a Swiss Bank pleaded guilty to money laundering conspiracy charges. His guilty plea came in connection with allegations that he facilitated the payment of more than $25 million in bribes to soccer officials by opening and managing bank accounts for those officials. In exchange for his assistance in facilitating these bribes, the former managing director received over $1 million in bonus payments from other co-conspirators, an amount he agreed to forfeit in connection with his plea. 

    The guilty plea came as part of the U.S. government’s investigation into corruption in international soccer which has been ongoing since May 2015. Previous FCPA Scorecard coverage of the FIFA investigation can be found here.

    Financial Crimes Anti-Money Laundering Bribery FIFA

  • Argentine Sports Marketing Firm Agrees to $112.8 Million Settlement in Connection with FIFA Corruption Investigation

    Federal Issues

    An Argentine sports marketing firm, entered into a deferred prosecution agreement with the U.S. DOJ on December 13, admitting to wire fraud conspiracy in connection with paying tens of millions of dollars in bribes and kickbacks to high-ranking FIFA officials in order to secure support for broadcasting rights in Argentina, Uruguay, and Paraguay for the 2018, 2022, 2026, and 2030 World Cup. The four-year DPA calls for the firm to pay approximately $112.8 million in forfeiture and criminal penalties. In announcing the DPA, the DOJ noted its consideration of the firm’s remedial actions including termination of its entire senior management team, hiring a new General Manager, Chief Financial Officer, Legal Director, Chief Compliance Officer, and Compliance Manager, cooperation, and implementation of enhanced internal controls and a rigorous corporate compliance program.

    The deferred prosecution agreement is part of the DOJ’s wider investigation into corruption in international soccer. Thus far, DOJ has charged 42 defendants and obtained 19 guilty pleas in connection with the FIFA corruption prosecutions. Prior Scorecard coverage of the FIFA investigations can be found here.

    Federal Issues Fraud International Anti-Corruption DOJ Bribery

  • Former President of Nicaraguan Soccer Federation Pleads Guilty in FIFA Investigation

    Federal Issues

    On December 7, a former president of a Nicaraguan soccer federation, pleaded guilty to racketeering conspiracy and wire fraud conspiracy charges. The guilty plea came in response to allegations that the former president accepted approximately $150,000 in bribes for helping an American company acquire media rights to FIFA events. As part of the plea, the former president agreed to forfeit almost $300,000 and could be sentenced to a maximum of 20 years for each count. Last month, the former president of the American company also pleaded guilty to racketeering and wire fraud conspiracy charges alleging that the former president arranged bribe payments totaling more than $14 million dollars in exchange for media and marketing rights to international soccer tournaments and matches.

    The former president was indicted by the DOJ in May 2015 along with 13 other FIFA officials. The former president was the final official to be extradited to the United States. The sprawling investigation has resulted in multiple other guilty pleas from former FIFA officials. Prior Scorecard coverage on the FIFA investigations can be found here.

    Federal Issues FCPA International DOJ

  • Sports Marketing Executive Pleads Guilty in FIFA Investigation

    Federal Issues

    On October 20, the DOJ announced that a former president of a soccer event management company pleaded guilty to racketeering conspiracy and wire fraud conspiracy charges. His guilty plea came in response to allegations that, as the company’s former president, he negotiated and made bribe payments totaling more than $14 million on behalf of the company to a high ranking soccer official in exchange for media and marketing rights to international soccer tournaments and matches. As part of the plea, the company's former president agreed to forfeit approximately half a million dollars and could be sentenced to a maximum of 20 years for each count.

    The guilty plea came as part of the U.S. government’s investigation into corruption in international soccer. It follows guilty pleas from the soccer event management company itself, its international parent company, and the parent company’s owner, in connection with related charges brought by the DOJ.

    Previous FCPA Scorecard coverage of the FIFA investigation can be found here.

    Federal Issues Criminal Enforcement FCPA International DOJ

  • Former President of Guatemala Soccer Federation Pleads Guilty in FIFA Investigation

    Federal Issues

    On July 29, the DOJ announced that the former president of the Guatemala soccer federation pleaded guilty to racketeering conspiracy and wire fraud conspiracy charges. The individual was the president of the Guatemala soccer federation from 2009 to 2015. The former president’s guilty plea came in response to allegations that he received bribes in exchange for awarding media and marketing rights to a Florida company for the Guatemalan national soccer team’s World Cup qualifying games. The bribes, totaling hundreds of thousands of dollars, were transmitted from U.S. bank accounts. As part of the plea, the former president agreed to forfeit $350,000 and could be sentenced to a maximum of 20 years for each count.

    The guilty plea came as part of the U.S. government’s investigation into corruption in international soccer. 42 individuals and entities have been charged thus far in the investigation, which has been ongoing since May 2015, and the former president is the sixteenth person to plead guilty.

    DOJ

  • Swiss Extradite Final FIFA Official Arrested in May 2015 Sweep

    Federal Issues

    On May 18, former President of the Nicaraguan Football Federal Julio Rocha was extradited from Switzerland to the United States. He was the final FIFA official to be extradited following the arrests made in Zurich in May 2015, according to the Swiss Federal Office of Justice, which has handled the extradition proceedings over the past year. Mr. Rocha was indicted by the DOJ in May 2015 along with 13 other FIFA officials.

    DOJ

  • FIFA Seeks to Collect Millions as Victim in U.S. Case

    Federal Issues

    On March 15, FIFA filed a Victim Statement and Request for Restitution (Statement) with the DOJ seeking a portion of the hundreds of millions of dollars that authorities could collect from the former FIFA employees who allegedly engaged in longstanding kickback and bribery schemes. In its Statement, FIFA asserts that the more than 40 defendants charged by the DOJ “grossly abused their positions of trust to enrich themselves,” thereby causing significant harm to FIFA including financial losses and damage to FIFA’s reputation. FIFA asserts that as the victim of the defendants’ crimes, it is entitled to recover restitution under the Mandatory Restitution to Victims Act, 18 U.S.C. § 3663A. FIFA estimates its losses to be at least $28 million in salaries and benefits paid to the defendants, plus $10 million misappropriated as bribes. Time will tell if FIFA ultimately is deemed to qualify for restitution under the Act.

    DOJ

  • FIFA Ethics Committee Issues Eight-Year Bans to President and Vice President

    Federal Issues

    On December 21, the FIFA Ethics Committee announced that it would ban its embattled President, Sepp Blatter, and Vice President, Michel Platini, from all football-related activities for eight years. The ban was imposed as a result of an investigation into a payment of $2 million from FIFA to Platini in 2011 that was authorized by Blatter. The Ethics Committee’s statement on their decision stated that the payment was made without a legal basis. Platini is currently the head of UEFA, the governing body of European football. News reports state that it was widely anticipated that Platini would be elected President of FIFA in the upcoming 2016 election, but he has now withdrawn his candidacy following the Ethics Committee’s decision. Click here to view prior InfoBytes coverage on FIFA.

    Anti-Corruption

  • DOJ Charges 16 Additional Individuals with FIFA-Related Corruption; Swiss Authorities Arrest Two High-Ranking FIFA Members

    Federal Issues

    On December 3, the DOJ charged an additional 16 individuals in connection with its ongoing corruption investigation into FIFA. The new indictment included a number of high ranking FIFA members, including Alfredo Hawit, the president of the Confederation of North, Central America and Caribbean Association Football (CONCACAF) and vice-president of FIFA, and Juan Angel Napout, the president of the South American Football Confederation (CONMEBOL) and a member of the FIFA executive committee. Both of these individuals were arrested by Swiss authorities in Zurich and are opposing extradition to the United States.

    With the additional 16 individuals, a total of 41 people and entities have been charged as part of the DOJ’s ongoing investigation.

    Anti-Corruption DOJ

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