The arrests of several FIFA officials today could be just the beginning.
Neil W. Blackmon writing from Brooklyn
The news broke twelve minutes before midnight on the east coast and jolted many from the early stages of slumber, leaving many wondering if they had slipped into a dreamworld or alternate universe.
First reported by four reporters at the New York Times, ten high-ranking soccer officials who either work directly for FIFA, are or have been highly influential in FIFA politics were arrested by Swiss officials Wednesday morning outside the Baur au Lac hotel, an elegant five-star property with views of the Alps and Lake Zurich. Among those arrested are Jeffrey Webb, the President of CONCACAF, and his predecessor, Jack Warner, still an office-holder in his native Trinidad and Tobago. The others: Eugenio Figueredo, a Uruguayan football executive; Eduardo Li, president of the Costa Rican football association; Julio Rocha, a FIFA development officer; Rafael Esquivel, president of the Venezuelan football association; José Maria Marin, ex-president of the Brazilian Football Confederation; and Nicolás Leoz, the former CONMEBOL (South American) football president.
Per a release from the DOJ, at least fifteen other individuals are being investigated, and all told, fourteen individuals were indicted Wednesday morning. Those defendants, which include nine FIFA executive officers and five corporate officials, are charged with racketeering, wire fraud and money laundering conspiracies, among other offenses, in connection with what the DOJ release calls “the defendants’ participation in a 24-year scheme to enrich themselves through the corruption of international soccer.” Guilty pleas of four individual defendants and two corporate defendants were also unsealed today.
The indictments and arrests, which will be the subject of a DOJ press conference this morning in Brooklyn, stem from a lengthy DOJ investigation of FIFA, which is the governing body of international soccer and as such, the most powerful sporting organization on the planet. FIFA, which has, per the NYT, 1.9 billion dollars in reserves, is also the subject of an ongoing investigation by Swiss prosecutors and officials.
Not listed in the indictment, and as of yet, not implicated directly in the Swiss probe, is longtime FIFA President Sepp Blatter, who has ruled the sport with Machiavellian gusto since defeating Swedish reform Lennart Johansson in a curiously lopsided election in 1998. The question remains whether the indictments and news of a separate Swiss probe will impact or affect the scheduled FIFA presidential election to be held Friday, where Mr. Blatter will seek a fifth term in charge of global football. Blatter is expected to win that election handily, and has, despite widespread criticism and claims of corruption, navigated presidential challenges with little issue historically, aided largely by obsequious lieutenants and executives cut from a similar ilk as those indicted Wednesday. Whether Blatter wins Friday or not– and there is no real reason to believe he won’t- indeed, FIFA has said the election will go on as planned despite the arrests-– the arrests, indictments and Swiss probe are yet another assault on Blatter’s grip over FIFA and another blow likely to erode at the fealty displayed by those who have long served him. Calls for Blatter to step aside, heightened in recent years following the 2022 World Cup being awarded to Qatar and accelerated by splendid journlism from the likes of Jeremy Schapp and others, are likely to reach fever pitch in the days and weeks to come.
https://www.youtube.com/watch?v=PP1mZDdAtdE
The indictments, arrests and Swiss probe are, without question, a jolt in the arm for the ever-increasing legion of FIFA reform advocates and a body blow to the staunch defenders of the status quo. And it is a body blow on optics alone, before any convictions or trials. The mere visibility of FIFA officials being arrested outside a lavish five-star hotel as the law enforcement bodies of two governments seize documents and electronic data in Zurich and Miami offices is a signal of intent: you can’t continue to operate the way you are operating and we will contest you at every turn if you try.
“The indictment alleges corruption that is rampant, systemic, and deep-rooted both abroad and here in the United States,” said newly appointed United States Attorney General Loretta E. Lynch. Lynch, who oversaw the investigation before assuming the post as the nation’s top non-robed attorney, stated she was surprised by how rampant and systemic the corruption found was. Soccer insiders and fans alike are not.
Blatter’s maintenance of power hasn’t just relied on obsequious lieutenants. He has consolidated power by consistently increasing FIFA’s revenue streams and ensuring that enough money goes to the countries who need it most in exhcange for their continued loyalty and deference to his decision making. FIFA is structured as a one nation, one vote organization which means that every time Blatter builds a soccer field in the Kingdom of Nairu or a village in Nepal, he strengthens his regime. These small countries could care less about the long-term implciations of FIFA corruption so long as the checks keep coming in. Blatter’s brilliance as FIFA president is most aptly demonstrated by his understanding of this and his ability to navigate it in a way that leaves only the appearance of his own impropriety, not direct evidence.
It is not surprising then, that Blatter’s immediate strategy in response to the indictments and arrests is to shift blame to the regional footballing organizations implicated: CONMEBOL and CONCACAF, noting in a release that they were pleased that the corruption probes and arrests were serving to “reinforce” actions they’d already taken.
"Reinforce measures FIFA has already taken." LOL. pic.twitter.com/D7ZDYThAVA
— The Yanks Are Coming (@YanksAreComing) May 27, 2015
It is perfectly normal, in the human condition, to cast blame on others when you are in trouble- as a criminal defense attorney I assure you this happens all the time– but FIFA’s response and blameshifting here are the functional equivalent to a toddler stamping her feet, insisting she’s brushed her teeth when the toothbrush is dry. It isn’t true, and it is humorous how obvious that is.
Sepp Blatter may win his election Friday, but his hold on power continues to be weakend.
This, of course, has always been Blatter’s way, from the moment he defeated Johansson by a much larger margin than expected in 1998. He simply sweeps criticisms aside with a smile and a formulaic statement that claims offense at any implication of corruption and emphasizes his personal belief in his own qualifications.
Of late, as public criticisims have becoming increasingly biting, Blatter has adopted more toddler tendencies, like creating his own reality. In 2014, FIFA spent $27 million on a film where Blatter was, of course, the eponymous hero. Recently, he compared himself to a mountain goat, telling a Swiss newspaper: “I cannot be stopped. I just keep going.”
Mountain goat or troll beneath the billy goat’s bridge, Blatter’s legacy can now add “largest corruption probe(s) and arrests in FIFA history” to the CV.
As far as prosectorial outlook, the arrests raise interesting legal questions.
First, how strong is the case?
The Justice Department built its case with help from a former FIFA executive, Chuck Blazer, who secretly pleaded guilty in federal court in 2013. Mr. Blazer forfeited $1.9 million when he entered his guilty plea and agreed to make a second payment at sentencing.
According to the indictment, several international soccer events were tainted by bribes and kickbacks involving media and marketing rights: World Cup qualifiers in the Concacaf region; the Gold Cup, a regional championship tournament; the Concacaf Champions League; the Copa América; and the South American club championship, the Copa Libertadores. The indictment also claims that bribes and kickbacks were found in connection with the selection of the host country for the 2010 World Cup. The 2018 and 2022 World Cups have also been implicated, and will be a central focus of the Swiss probe.
Traditionally, the DOJ does not prosecute or seek to prosecute cases it believes it will lose at trial. This means two things: 1) the DOJ is confident in the indictments issued to date, and 2) more indictments may be coming, as initial indictments in conspiracy cases tend to be conservative, limited to what can be proved with clarity and efficiency at the outset. While the 2018 and 2022 World Cups were not directly implicated in the indictments, a source within the investigation told The Yanks Are Coming Wednesday that “the initial indictments were conservative in nature” and “limited to who most likely can be swiftly extradited and prosecuted.” The same source indicated the 2018 and 2022 World Cups are very much a part of the ongoing investigation.
Second, what gave the FBI the power to conduct such a wide-sweeping and global investigation, and further, what gives the DOJ jurisdiction to prosecute seveal individuals who have rarely spent time on US soil?
United States law gives the Justice Department wide authority to bring cases against foreign nationals living abroad, an authority that prosecutors have used repeatedly in international terrorism cases. What has to be proved in each instance is a connection to the United States, whether that be a business transaction conducted on US soil or a banking transaction conducted via a US bank or more tenously and novelly, via electronic data transmissions that enter the United States.
The latter, electronic data transmissions, are mentioned by the DOJ and suggest that the jurisdictional issues in the pleadings will fascinate. Further, given the likelihood that FIFA, with its wide pockets, can find ways to hire the best attorneys to defend its interests, the jurisdictional issues will likely result in lengthy pre-trial litigation. This is great news for law professors, bad news for criminal procedure students and fans hoping for speedy trials and resolutions.
Finally, what happens to Russia 2018 and Qatar 2022? And will FIFA’s attempt this morning to immediately cast blame on CONCACAF and CONMEBOL as rogue organizations ultimately prove effective?
The first answer, regrettably for now, is nothing. VISA and Coca-Cola were among major FIFA sponsors who bristled earlier this month at worker conditions in Qatar and early reports that Russia is building its World Cup stadiums with prison labor. But there is both a moral and financial difference between bristling and pulling sponsorships, and that’s a bridge major FIFA sponsors have yet to cross.
As to the second answer, the Swiss probe is what should make the eyes glisten with hope. Jurisdictional issues within these arrests and prosecutions likely limited the extent and reach of the DOJ, who despite enormous resources and extremely talented attorneys can’t manufacture jurisdictional nexuses out of thin air. This means it is natural for their probe to be, at least prosecutorially, limited to CONMEBOL and CONCACAF and any FIFA officials they can prove directly facilitated or enabled corruption. The Swiss can dive deeper, perhaps tying UEFA officials to rampant corruption, a possibility often suggested by Michel Platini, who heads UEFA, and who said recently that as long as Blatter remains in power, “FIFA will lack credibility and its image will be tarnished.” A Swiss probe that implicates corruption within UEFA, largely perceived as FIFA’s most powerful footballing region, would go a long way to assuring a foundation exists to enact radical and systemic change.
As the death toll mounts in Qatar, and FIFA’s president continues to look the other way, let’s hope that happens sooner, not later.
But today is a terrific, encouraging start.
Neil W. Blackmon is Co-Founder of The Yanks Are Coming. He can be reached at nwblackmon@gmail.com and you can follow him on Twitter at @nwblackmon.