U.S. authorities investigating corruption in world football "have gained the cooperation of a Swiss banker, according to people familiar with the matter, leading their probe closer to financial institutions that prosecutors have said were used to move bribe money," according to Voreacos, Smythe & Geiger of BLOOMBERG. Five people familiar with the matter said that helping prosecutors is Jorge Arzuaga, a former private banker to a sports marketing exec "who admitted to bribing" football officials. Arzuaga is the "first banker to emerge as a cooperator in the investigation into a decades-long scheme of bribery and kickbacks to influence the awarding of media and marketing rights to tournaments in the Americas." Arzuaga worked for Julius Baer Group Ltd. and Credit Suisse Group AG. His clients included Alejandro Burzaco, a onetime Citigroup Inc. employee who "later became one of the most powerful sports marketing executives in South America." Burzaco pleaded guilty to money laundering, racketeering and wire fraud conspiracies, admitting "he used several banks over almost a decade to launder bribes" to football officials. It is "unclear what information Arzuaga can provide to prosecutors." Attorneys for Arzuaga and Burzaco, as well as representatives of Julius Baer and Credit Suisse, declined to comment. Jennifer Arlen, a law professor at N.Y. University, said that the actions of an individual banker "could be held against a bank, or prosecutors could opt against charges if they conclude that the bank cooperated fully and has a strong compliance program." She said, "Every enormous financial institution is vulnerable to having employees violate the law in an isolated way. By contrast, if prosecutors were to determine that multiple employees were engaged in this conduct and actively promoting criminal activity, prosecutors would take a much different approach" (BLOOMBERG, 5/9).
UPBEAT TONE: REUTERS' Brian Homewood reported FIFA President Gianni Infantino "struck an upbeat tone ahead of his first Congress in charge of FIFA," at which FIFA will try to move on from a major corruption scandal. Infantino said, "After going through some uneasy times, I truly believe that the organization is on the verge of an exciting new era and that we can unite to work towards our common goal of developing football across the globe and at all levels." His leadership "must also deal with other problems, including the chronic financial difficulties and poor administration seen in many parts of the world" (REUTERS, 5/9).
U.S. EXTRADITION: The AFP reported Switzerland's top court on Monday "rejected ex-FIFA official Julio Rocha's bid to block his extradition" to the U.S., where he has been charged with a raft of corruption-related offences. Rocha agreed to be extradited to his native Nicaragua, where he also faced graft charges, "but the Swiss justice ministry gave priority to the U.S. request, which Rocha fought." U.S. prosecutors have "accused Rocha of taking bribes in exchange for the sale of sports marketing rights for World Cup qualifiers when he led the Nicaraguan federation." His transfer to N.Y. is "likely to be carried out in the coming days" (AFP, 5/9).
