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The finger pointing continues, it all started last week. FIFA executives were arrested and South Africa’s name was bandied around a bribery scandal. ‘South Africa paid $10 million but it wasn’t a bribe’ according to Sports Minister Fikile Mbalula. The counter argument – they don’t know where it was spent but it should have been for an African Diaspora program in the Caribbean. Then Sepp Blatter resigns days after re-election. Enter former FIFA executive Chuck Blazer and he throws everything up in the air again, who it must be said implicated France and South Africa in court for bribes in 2013. His juicy testimony is below. – Stuart Lowman
THE COURT: Even better. Mr. Blazer, tell me what you did.
THE DEFENDANT (Chuck Blazer): Regarding Count One. From in and about and between 1990 to December 2011, I was employed by and associated with the Federation Internationale de Football Association, commonly known as FIFA, and one of its constituent confederations, the Confederation of North, Central American and Caribbean Association Football, commonly known as C0NCACAF, and their sports marketing affiliates. During this time, the principal purpose of FIFA and CONCACAF, as welI as other affiliated soccer governing bodies and sports marketing companies, was to promote and/or regulate the sport of soccer worldwide as part of an ongoing organization. Among other things, FIFA and C0NCACAF held sports-related events and conducted business overseas and in the United States, including in the Eastern Djstrjct of New York, and utilized American financial institutions in their banking and investment activities. C0NCACAF also had its headquarters in New York. From 1997 through 2013, I served as a FIFA executive committee member. One of my responsibilities in that role was participating in the selection of the host countries for the World Cup. I also served as General Secretary of C0NCACAF from 1990 through December of 2011, and was responsible for, among other things, participating in the negotiations for sponsorship and media rights. During my association with FIFA and C0NCACAF, among other things, I and others agreed that I or a co-conspirator would commit at least two acts of racketeering activity. Among other things, I agreed with other persons in or around 1992 to facilitate the acceptance of a bribe in conjunction with the selection of the host nation for the 1998 World Cup. Beginning in or about 1993 and continuing through the early 2000s, I and others agreed to accept bribes and kickbacks in conjunction with the broadcast and other rights to the 1996, 1998, 2000, 2002, and 2003 Gold Cups. Beginning in or around 2004 and continuing through 2011, I and others on the FIFA executive committee agreed to accept bribes in conjunction with the selection of South Africa as the host nation for the 2010 World Cup. Among other things, my actions described above had common participants and results. That is with regard to Count One.
THE COURT: Alright. Go ahead.
THE DEFENDANT: Count Two. Between April of 2004 and May 2011, I and others who were fiduciaries to both FIFA and C0NCACAF, in contravention of our duties, I and others, while acting in our official capacities, agreed to participate in a scheme to defraud FIFA and CONCACAF of the right to honest services by taking undisclosed brjbes. I and others agreed to use e-mail, telephone, and a wire transfer into and out of the United States in furtherance of the scheme. Funds procured through these improper payments passed through JFK Airport in the form of a check. That is regarding Count Two. Number three.
THE COURT: Okay.
THE DEFENDANT: Number three. Between December 2008 and May 2011, I and others agreed to and transmitted funds by wire transfer and checks from places within the United States to places in the Caribbean, and from places in the Caribbean to places in the United States. I agreed to and took these actions to, among other things, promote and conceal my receipt of bribes and kickbacks. I knew that the funds involved were the proceeds of an unlawful bribe, and I and others used wires, e-mails, and telephone to effectuate payment of and conceal the nature of the bribe. Funds procured through these improper payments passed through JFK Airport in the form of a check. Regarding Counts Four through Nine. Between 2005 and 2010, while a resident of New York, I knowingly and wilfully failed to file an income tax return and failed to pay income taxes. In this way, I intentionally concealed my true income from the IRS, thereby defrauding the IRS of income tax owed. I knew that my actions were wrong at the time.
THE COURT: Repeat that again.
THE DEFENDANT: Between 2005 and 2010, while a resident of New York, I knowingly and wilfully failed to file an income tax return and failed to pay income taxes. In this way, I intentionally concealed my true income from the IRS, thereby defrauding the IRS of income tax owed. I knew that my actions were wrong at the time.
MR. CORNGOLD (defence lawyer): Mr. Blazer is waiving venue for these.
THE COURT: Do you know what venue is, Mr. Blazer?
THE DEFENDANT: Yes, I do.
THE COURT: Continue.
THE DEFENDANT: Count 10. In 2010, while a resident of New York, I had an interest in and controlled bank accounts in the Bahamas with a total value exceeds $10,000. I intentionally and wilfully did not file a report disclosing those accounts to the Department of the Treasury. I did this while violating the Federal Tax Law.
THE COURT: Alright. You have seen it before?
MR. NORRIS (government lawyer): Yes, Your Honor.
THE COURT: Is there anything that you want to add?
MR. NORRIS: Two quick points. With respect to Count Three. I would just note that the places in the Caribbean that the defendant referred to are outside of the United States. With respect to Counts Four through Nine, the defendant owes substantial federal income tax for each of the years 2005 to 2010. I believe we could prove that if this case were to go to trial.
THE COURT: Anything else, Mr. Corngold?
MR. CORNGOLD: No, Your Honor.
THE COURT: May I have a copy of that, if you have no objection.
MR. CORNGOLD: We have no objection.
THE COURT: I don’t need it right this minute but if you can get me a clean copy of it I would appreciate it.
MR. NORRIS: One other point, as well, with respect to Count Ten and Venue, I would note that there are local IRS offices within the Eastern District of New York that the defendant could have filed the FBAR form which gets the venue to that count.
THE COURT: Based on the information given to me I find that the defendant is acting voluntarily, that he fully understands his rights, the consequences and possible consequences of his pleas, and there are a factual basis for these pleas of guilty. I, therefore, accept the plea of guilty to Counts One through Ten inclusive of the information bearing Docket number 13-CR-602.
Read the full court transcript here.
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