FIFA officials indicted by US in claimed $150M 'World Cup of Fraud' scheme
U.S. prosecutors on Wednesday announced a racketeering case against nine current or former FIFA officials, contending that they had operated international soccer’s governing body as a criminal enterprise that collected some $150 million in illegal profits.
One FIFA official got $10 million in bribes, U.S. Attorney General Loretta Lynch said in a press conference announcing the sweeping federal indictment (PDF). Described in the Brooklyn, New York, case as the “World Cup of Fraud,” the alleged scheme took place over a 24-year period. In addition to the nine current and former FIFA officials, five sports marketing executives accused of paying bribes for media rights to major tournaments are among the defendants.
“These individuals and organizations engaged in bribery to decide who would televise games, where the games would be held, and who would run the organization overseeing organized soccer worldwide,” Lynch said.
The Guardian, the New York Times (reg. req.) and the Wall Street Journal (sub. req.) have stories.
In addition to alleged violations of the Racketeer Influenced and Corrupt Organizations Act, defendants are charged with money laundering conspiracy and wire fraud. The unusual prosecution will present challenges, a Bloomberg news analysis reports, and defendants are likely to contest the extraterritorial application of U.S. law in Europe. Several, however, have already taken pleas, bolstering the prosecution case.
The Bloomberg analysis notes a 2014 decision by the New York-based 2nd U.S. Circuit Court of Appeals held that RICO can apply abroad if the criminal acts committed violate laws that apply outside of U.S. borders.
“To convict the FIFA defendants, therefore, the Department of Justice will have to prove either that they committed crimes within the U.S. or that they committed predicate crimes covered by RICO that reach beyond U.S. borders,” Bloomberg View columnist Noah Feldman wrote. “Presumably, the department thinks it has the evidence to do this.”
Related coverage:
ABAJournal.com: “FIFA’s culture of secrecy criticized by former US Atty who investigated World Cup bidding process”
See also:
ABA Journal: “Meet the lawyers behind high-profile investigations”
