Newly re-elected FIFA President Sepp Blatter will be "quizzed by Swiss prosecutors as part of a criminal investigation into the controversial votes for the 2018 and 2022 World Cups," according to Calvert, Arbuthnott & Pancevski of the LONDON TIMES. Blatter is one of 10 serving FIFA officials who "will be questioned." A team of prosecutors based in Bern "secretly launched their criminal inquiry into the December 2010 World Cup ballot more than two months ago." They are "investigating 'criminal mismanagement' and money laundering during the contest," which resulted in Russia hosting the '18 tournament and Qatar "surprising the world" by winning '22. The offenses "carry sentences" of up to seven and a half years in jail. Their inquiry, codenamed Operation Darwin, has already "led to the seizure of documents" from FIFA HQ and the "freezing of bank accounts of unidentified officials as they prepare to interview Blatter" and the other members of FIFA ExCo. Among the other FIFA officials to be "questioned as 'persons providing information' -- a legal status between being a witness and a suspect" -- will be UEFA President Michel Platini and Russian Sports Minister Vitaly Mutko (LONDON TIMES, 5/31).
NEW TACTICS: BLOOMBERG's Smythe & Voreacos reported a U.S. sports marketing exec charged in a sweeping corruption probe of int'l football officials was "freed on bail after pleading not guilty, in the first appearance in an American court of 14 defendants." Aaron Davidson, 44, president of Traffic Sports USA Inc., a subsidiary of São Paulo-based Traffic Group, is "accused of helping the company funnel bribes" to football officials. Davidson "entered his plea" before U.S. Magistrate Judge Cheryl Pollak in Brooklyn, N.Y. on Friday. Pollak "allowed him to remain under electronic monitoring in his Miami condominium" under a $5M bail package proposed by prosecutors (BLOOMBERG, 5/29). REUTERS' Alice Baghdijan reported several of the seven football officials arrested in Zurich on corruption charges in an investigation linked to FIFA are "requesting bail on health grounds," Swiss newspaper TagesAnzeiger reported. The men in question, who are "facing extradition" to the U.S. following their arrests on Wednesday, have said that they are "too old and not fit enough to remain in detention." The seven individuals, who include FIFA VP Jeffrey Webb and Head of the Costa Rican's Football Federation (FEDEFUTBOL) Eduardo Li, are "being held" at undisclosed detention centers. All are "contesting their extradition from Switzerland" (REUTERS, 5/30).
TEAMWORK: In a separate piece, Voreacos & Smythe reported Daryll Warner, son of a former FIFA VP indicted this week in the football bribery scandal, was "cooperating with U.S. prosecutors when he pleaded guilty" in '13, according to a court transcript made public. Warner, 40, was the "first of four people to plead guilty in a probe" of FIFA, admitting wire fraud and structuring of financial transactions on July 15, 2013. Warner's brother, Daryan, "pleaded guilty later that year" (BLOOMBERG, 5/29). CHANNEL 4 NEWS reported the Serious Fraud Office announced that it is "assessing 'material in its possession' relating to allegations of corruption at the heart of world football's governing body." Barclays Bank is believed to have "launched an internal review into the claims, while Standard Chartered Bank said it is 'looking in to the payments.'" Barclays and HSBC have "declined to publicly comment on reports." However, Standard Chartered has confirmed that it is "looking into the payments" (CHANNEL 4 NEWS, 5/31).
PAPER TRAIL: In N.Y., Matthew Futterman reported some $10M in transfer payments were "sent from FIFA bank accounts" in Switzerland to a Caribbean football organization and "used to pay bribes to secure votes for South Africa's bid to host the World Cup" in '10, the U.S. Department of Justice's indictment alleges. The payments "could emerge as the most direct connection between the Zurich-based organisation’s executive offices and corruption investigations in the sport." The size of the transfers, allegedly sent in three installments, meant that they "needed signed approval from within a small group" of execs who work at FIFA's highest levels. Should the Justice Department's allegations prove true, it is "possible that whoever approved the payments may not have known the money was being used to pay for votes on hosting the World Cup." Nevertheless, the transaction described in the 161-page indictment "brings investigators queries into FIFA’s own executive suite" (WALL STREET JOURNAL, 5/31). The BBC reported South Africa "did pay" $10M to a football body led by Jack Warner, a figure at the center of FIFA corruption allegations. South Africa FA President Danny Jordaan confirmed that the amount was "deducted" from a FIFA payment to the country in '08. Reports said that a subsequent letter "requested that money to be sent, instead, to the Caribbean Football Union." South African officials "deny it was a bribe to secure the 2010 World Cup" (BBC, 5/31).
