FIFA Corruption Scandal Deepens as US Extradition Begins

Strategic Insights -

US Attorney General Loretta Lynch has announced the next step in the FIFA corruption investigation, with federal officials seeking to extradite suspects to the United States to face allegations of bribery and corruption. The investigation has led to the arrest of seven people, including FIFA Vice President Jeffrey Webb, and the unsealing of a 47-count indictment detailing charges against 14 individuals for racketeering, wire fraud, and money laundering conspiracy.

The indictment alleges that the officials turned soccer "into a criminal enterprise" and that the defendants fostered a culture of corruption and greed that created an uneven playing field for the biggest sport in the world. The indictment also claims that the individuals took bribes totaling more than $150 million and in return provided lucrative media and marketing rights to soccer tournaments as kickbacks over the past 24 years.

The complexity of the investigation was evident by the federal officials accompanying Lynch, including FBI Director James Comey and Richard Weber, head of the IRS Criminal Investigation division. "This really is the World Cup of fraud, and today we are issuing FIFA a red card," Weber said.

FIFA officials are accused of engaging in bribery to decide who would televise games, where the games would be held, and who would run the organization overseeing organized soccer worldwide. The decisions allegedly sullied by corruption include the sponsorship of the Brazilian national soccer team by a major US sportswear company, the 2011 FIFA presidential election, and the placement of the 2010 World Cup.

Key Takeaways:

  • The US investigation has led to the arrest of 7 people, including FIFA Vice President Jeffrey Webb, and the unsealing of a 47-count indictment detailing charges against 14 individuals for racketeering, wire fraud, and money laundering conspiracy.
  • The indictment alleges that the officials turned soccer "into a criminal enterprise" and that the defendants fostered a culture of corruption and greed that created an uneven playing field for the biggest sport in the world.
  • The individuals accused of corruption took bribes totaling more than $150 million and in return provided lucrative media and marketing rights to soccer tournaments as kickbacks over the past 24 years.
  • The indictment also claims that the decision to award the 2010 World Cup to South Africa was corrupted by bribes.
  • The investigation has led to the seizure of documents and bank accounts related to the World Cup bids in 2018 and 2022.
  • Six of those indicted in the United States have current ties to FIFA, while another, Jack Warner, is a former FIFA vice president and ex-president of CONCACAF.
  • Charles Blazer, a former member of the FIFA Executive Committee, "decided early on to use his position for personal gain" and amassed $11 million in unreported income between 2005 and 2010.
  • Daryll and Daryan Warner, sons of Jack Warner, have also been implicated in the scandal, with Daryll pleading guilty to two counts related to wire fraud and structuring of financial transactions in 2013, and Daryan forfeiting $1.1 million as part of his plea.

Statistics:

  • The indictment alleges that the individuals accused of corruption took bribes totaling more than $150 million.
  • The investigation has led to the seizure of documents and bank accounts related to the World Cup bids in 2018 and 2022.
  • The indictment includes charges against 14 individuals for racketeering, wire fraud, and money laundering conspiracy.
  • The individuals accused of corruption 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.
  • The indictment claims that the individuals also corrupted the decision to award the 2010 World Cup to South Africa.

Sources:

  • CNN (Eliott C. McLaughlin and Greg Botelho)
  • US Department of Justice
  • Office of the Attorney General of Switzerland (OAG)
  • FIFA
  • Swiss Federal Police
  • CNN affiliate WPLG