Spanish king distances himself from scandal-hit father

Yahoo – AFP, March 15, 2020

Juan Carlos handed over power to his son, Felipe in 2014 (AFP Photo/Juanjo Martín)

Madrid (AFP) - King Felipe VI of Spain moved Sunday to distance himself from his scandal-hit father, stripping him of his palace allowance and renouncing what he was due to inherit from him.

A statement from the palace announced that he had stripped the former king Juan Carlos, of his allowance and was himself renouncing what he was due to inherit from him.

The announcement came after media reports that Juan Carlos had received 100 million dollars (90 million euros) from Saudi Arabia via an offshore account -- and that King Felipe himself was also a beneficiary.

The money was lodged in a Swiss bank account in the name of a Panamanian foundation.

In the palace statement, the reigning king said that in April he had made it clear to a notary that he would accept no money from the foundation in question.

He also that he had absolutely no knowledge of having been named as a beneficiary to another foundation, which according to press reports paid millions of euros towards his father's flights in private jets.

On Tuesday, the Spanish parliament decided against launching an investigation into suspected money laundering by the former king Juan Carlos.

Reported Saudi payments to ex-king

Spain's hard-left Podemos party had called for it after reports earlier this month that in 2008 Juan Carlos received $100 million from Saudi king Abdallah via the Swiss account of an entity listed in Panama.

The Swiss daily Tribune de Geneve added that in 2012, $65 million of that sum was given by the king to his former mistress, Corinna zu Sayn-Wittgenstein.

Then a report in Britain's Daily Telegraph said that 52-year-old King Felipe was also a beneficiary of the fund, which it said had been set up when Juan Carlos was still on the throne.

Juan Carlos, now 82, came to the throne after the death of the military dictator Francisco Franco in 1975 and is widely respected for having favoured a transition to democracy.

But he lost his immunity from prosecution after handing power to his son, Felipe, in June 2014 following a 39-year reign.

He resigned from public life last year after a series of scandals about his private life.

In 2012, he outraged Spaniards by going elephant hunting in Botswana at the height of the country's recession.

Spanish reports say Juan Carlos has until now received an annual allowance from the state of more than 194,000 euros.

Rabobank settles US money laundering charge for €300m

DutchNews, February 8, 2018

Rabobank’s headquarters in Utrecht. Photo: Depositphotos.com

Rabobank has settled a long-running charge that one of its US subsidiaries – RNA – laundered money for Mexican drugs cartels and deliberately withheld information from the authorities. 

The settlement means Rabo will not have to undergo prosecution in the US, the Volkskrant said on Thursday. 

The bank has forfeited nearly $370m (€298m) for anti-money laundering funds that authorities say allowed untraceable money transfers on behalf of criminals and for hiding information from US regulators. That includes a $50 million fine the bank will pay to the US treasury. 

The case involves a RNA branch in Calexco, a US city on the Mexican border, which US authorities had been monitoring since 2006. A formal investigation on laundering Mexican drugs money through three accounts at the branch was launched in 2013.

Cuba's first luxury hotel opens in Havana

Yahoo – AFP, May 23, 2017

Cubans walk near the Manzana Kempinski Hotel, the first ultra luxury hotel
in Cuba, on May 22, 2017 (AFP Photo/YAMIL LAGE)

Havana (AFP) - Cuba's first ultra luxury hotel opened its doors Monday in Havana, with guests paying up to $2,500 a night to stay in five-star comfort on the Communist island.

The "Gran Hotel Manzana," part of the Swiss group Kempinski Hotels, is situated in the heart of the Cuban capital in front of the verdant gardens of Parque Central and the grand Alicia Alonso theater, home to the Cuban National Ballet.

Guests in each of the hotel's 246 rooms, 50 of which are suites, have the pick of four bars and two restaurants and can take a swim in the rooftop infinity pool.

The European-style building first opened in 1917, before undergoing a complete renovation.

In order to deliver the project in time, the Cuban government was forced to accept the builders bringing hundreds of qualified workers from India, a rare move in a country that usually requires that only underpaid -- and undermotivated -- Cuban workers.

Now the hotel, jointly owned by Kempinski and the military-controlled Cuban tour operator Gaviota, charges between $440 and $2,485 a night.

The 'Gran Hotel Manzana' boasts a shopping mall filled with high-end

boutiques (AFP Photo/YAMIL LAGE)

"We appreciate hidden gems and this matches our philosophy," Kempinski director Xavier Destribats told Cuban state television.

On the ground floor of the hotel, a shopping mall filled with high-end boutiques such as Versace, Lacoste and Montblanc sparked curiosity in a country where luxury was long ago banned under the iron-fisted rule of revolutionary leader Fidel Castro.

"The hotel is really beautiful, but here everything is terribly expensive. It's not for the Cubans," said Lidia Martinez, a 29-year-old housewife.

Leonardo Padilla, a salesman at Montblanc, admitted he had difficulty selling watches ranging from $1,775 to $4,500 in a country where the average wage is no more than $30.

Brazil's Odebrecht, Braskem pay record fine in bribery case

Yahoo – AFP, Heather Scott, with Sebastian Smith in Rio de Janeiro, December 22, 2016

Brazilian construction company Odebrecht pled guilty to paying hundreds of
millions to bribe government officials in countries on three continents (AFP
Photo/YASUYOSHI CHIBA)

Washington (AFP) - Scandal-plagued Brazilian construction giant Odebrecht and petrochemical affiliate Braskem have agreed to pay a record $3.5 billion to settle a vast international bribery case, US officials said.

Odebrecht, a key player in the Petrobras corruption scandal gripping Brazil, agreed to a fine of $4.5 billion but said it was only able to pay $2.6 billion, the US Justice Department said in a statement. Braskem, meanwhile, will pay $957 million.

The fines are to be paid to Brazilian, Swiss and US authorities, the department said, calling it "the largest-ever global foreign bribery resolution."

It is the latest in a string of terrible headlines for Odebrecht, which Brazilian investigators say was one of the ringleaders of a scheme to plunder billions of dollars from state oil company Petrobras.

Revelation of the scandal has rocked Brazil's political and business establishment to its foundations, with ex-president Luiz Inacio Lula da Silva facing trial and current President Michel Temer reportedly under suspicion.

The bribery case settled Wednesday includes the Petrobras allegations, but is even bigger.

The Odebrecht conglomerate pleaded guilty to bribing government officials and political parties to the tune of $788 million to secure business on three continents -- mostly in Brazil, but also 11 other countries in Latin America and Africa.

"Odebrecht and Braskem used a hidden but fully functioning Odebrecht business unit -- a 'Department of Bribery,' so to speak -- that systematically paid hundreds of millions of dollars to corrupt government officials in countries on three continents," US Deputy Assistant Attorney General Sung-Hee Suh said in a statement.

"Such brazen wrongdoing calls for a strong response from law enforcement, and through a strong effort with our colleagues in Brazil and Switzerland, we have seen just that."

Political fallout

In the main scheme, Odebrecht targeted top Brazilian politicians and executives at Petrobras for more than a decade starting in about 2001. The bribes were used to secure inflated contracts and even get favorable legislation passed in Congress.

Suh praised Brazil's judiciary for tackling the issue head on.

"I cannot praise their efforts enough. They have been under enormous pressure, done an extraordinary job of initiating the investigation and carrying it through," she said.

The Brazilian probe, known by its codename Operation Carwash, has cast dark shadows over two of Brazil's most important companies, Petrobras and Odebrecht, adding to economic pain as the country flounders in deep recession.

Odebrecht's jailed boss Marcelo Odebrecht and 76 other current and former executives have signed plea deals agreeing to tell all in exchange for lighter sentences.

The Brazilian press has described the deal as potentially apocalyptic for the political establishment.

Panama, meanwhile, said it would request information from the United States about alleged Odebrecht bribes paid in Panama to secure contracts, its foreign ministry said.

Shattered record

The previous record bribery settlement was $1.6 billion for German engineering group Siemens in 2008. It settled charges of systematically using bribes and slush funds to land public works contracts around the world.

Margarida Gutierrez, an economist at the Federal University of Rio de Janeiro, told AFP that this settlement, Odebrecht's newest move to come clean, would open the door for its return to the market.

"Right now they are unable to participate in any bids in Brazil or probably out of Brazil," she said. "Now they can start again, and try to clear their name. They will succeed but it will be hard."

The US Justice Department will conduct an "inability to pay analysis" by March 31 to determine the final amount that Odebrecht must come up with. Sentencing has been scheduled for April 17.

Under the plea agreement, Brazil will receive 80 percent of Odebrecht's fines, while the United States and Switzerland will garner 10 percent each.

Braskem, which is traded on the New York Stock Exchange through American Depositary Receipts (ADR), saw its shares soar after the deal was announced, closing up four percent.

It will pay a criminal fine of $632 million, and another $325 million penalty to the US Securities and Exchange Commission.

Under the Braskem deal, Brazil will receive 70 percent of the fines, while US and Swiss authorities receive 15 percent. Sentencing for the firm has not yet been scheduled.

Brazil's Odebrecht, Braskem pay record fine in bribery case https://t.co/Wn8k2rgyX2 pic.twitter.com/RM9Shs8gzG

— AFP news agency (@AFP) December 22, 2016

Related Article:

Total cost of VW 3.0-liter diesel settlement $1 bn: US authorities

Brazil ousts lawmaker who pushed for Rousseff impeachment

Yahoo – AFP, Damian Wroclavsky, September 13, 2016

The former president of Brazil's lower house Eduardo Cunha delivers a speech
 during a session in the Chamber of Deputies in Brasilia on September 12, 2016
(AFP Photo/EVARISTO SA)

Brasília (AFP) - Brazil's lower house of Congress voted Monday to oust its former speaker Eduardo Cunha, who spearheaded the drive to impeach president Dilma Rousseff only to suffer his own graft-stained downfall.

Cunha, who is often compared to the dark, manipulative villain Frank Underwood of the hit Netflix series "House of Cards," was stripped of his seat in the Chamber of Deputies by a resounding vote of 450 in favor, 10 against and nine abstentions.

"I declare lawmaker Eduardo Cunha stripped of office for conduct incompatible with lawmakers' duties," said the decision read out at the conclusion of the late-night session.

Cunha, a 57-year-old conservative allied with the Evangelical Christian right, was a central figure in Brazil's long impeachment drama.

His enemies accuse him of using his power to launch impeachment proceedings as a trump card to stave off his own prosecution for allegedly taking millions of dollars in bribes.

He resigned as speaker in July amid swirling accusations of corruption linked to the huge state oil company Petrobras.

He was forced to face the music in Congress for having "lied" to other lawmakers about his possession of secret Swiss bank accounts.

Cunha, who denies any wrongdoing, handled his own defense at Monday's session. He mainly displayed the cool and calculating persona he is known for, but occasionally his voice broke with emotion.

"I didn't lie. There's no bank account. Where's the proof?" he said.

"Don't judge me based on what public opinion says," he implored, reminding his colleagues that at least 160 of them also face judicial investigations.

But his appeals fell on deaf ears. The vote against him was well clear of the simple majority of 257 needed in the 513-member chamber.

Cunha was first suspended in May, less than a month after lawmakers voted to open impeachment proceedings against Rousseff, Brazil's first woman president.

Rousseff was definitively removed from office on August 31, and replaced by her vice president turned nemesis, Michel Temer.

The new center-right administration brought an end to 13 years of leftist rule in Brazil.

Evangelical 'gangster'

Cunha used a variety of stalling tactics to slow the proceedings that ultimately led to his ouster from Congress. The process dragged on for almost a year, the longest in Brazilian history.

Analysts had predicted he would continue to stall by asking his peers to delay a vote on his fate, arguing for a simple suspension or asking that lawmakers allow him to keep the right to hold public office.

But many of his onetime allies deserted him -- including in his own PMDB party, the biggest in Brazil and also Temer's party.

Rousseff, from the leftist Workers' Party, accused both Temer and Cunha of orchestrating a coup against her.

Thanks largely to Cunha's leadership, the lower house voted heavily in favor last year of opening an impeachment trial against Rousseff, on charges that she illegally manipulated government accounts.

On April 17, the day Rousseff's impeachment trial was authorized, Cunha was the target of a barrage of insults in Congress from leftist deputies, who shouted "Gangster!" and "Putschist!"

Cunha was long considered one of the best wheelers-and-dealers in Brasilia, building a considerable support base including the powerful agriculture lobby, fellow evangelicals and the so-called "bullet caucus" of politicians with police and army connections.

He won prominence promoting a conservative social agenda that included a "Heterosexual Pride Day" and restrictions on abortion. He has been reported to own no less than 150 Internet domains using the name "Jesus."

His defense Monday was sprinkled with religious references, as well as condemnation of Rousseff and her Workers' Party (PT).

In the end, he outlasted her by just two weeks.

"It's the price I'm paying so Brazil can be free of the PT. They're making me pay the price for impeachment," he said.

No matter his fate, he said, no one can take from him "the pleasure of seeing that criminal government go."

Why few Americans appear in the Panama Papers

Yahoo –AFP, Jeremy Tordjman, April 8, 2016

Issues of the German daily "Sueddeutsche Zeitung" featuring the "Panama Papers"
 with illustrations by German artist Peter M Hoffmann depicting heads of state
(AFP Photo/Christof Stache)

Washington (AFP) - From Russia to China, and Britain to Iceland, the revelations of the "Panama Papers" have tarnished officials and the wealthy over the implication that they hide riches offshore.

But one group is not there: prominent Americans. US tycoons and politicians are notably absent in the leaked files of the Panama law offices of Mossack Fonseca, which created thousands of shell companies worldwide to hide the identities of their ultimate owners, some of whom may have been evading taxes.

There is Hollywood mogul David Geffen, the Asylum Records and Dreamworks SKG co-founder. But there are no Americans comparable to Iceland's prime minister, or henchmen of the Russian president -- all in the Panama records -- at least in what has been disclosed so far.

"There are a lot of Americans, but they are more like private citizens," said Marina Walker Guevara, deputy director of the International Consortium of Investigative Journalists which coordinated the investigation and release of the Panama Papers.

However, that hardly means Americans have fully embraced financial transparency, she told AFP.

"It doesn't show that the US is outside of the offshore system; the US is actually a big player."

The Tax Justice Network's Financial Secrecy Index (AFP Photo/Alain

Bommenel, Jean Michel Cornu)

Other options

One possible reason for their small presence in the Panama documents is that US citizens hoping to hide funds and activities offshore were not drawn to Spanish-speaking Panama as a haven, when there are options like the British Virgin islands and the Cayman Islands.

"Americans have so many tax havens to choose from," said Nicholas Shaxson, author of "Treasure Islands: Tax Havens and the Men who Stole the World," a 2011 book on secretive centers for hiding money.

Indeed, Americans do not have to go abroad to hide funds and activities behind anonymous corporations: they can create them at home.

States like Delaware and Wyoming allow the creation of such companies, for just a few hundred dollars, that conceal their ultimate financial beneficiary.

And while US banks are normally required to "know their customers," they can bypass that rule and open accounts for shell companies, ensuring total discretion for someone who wants to move money around quietly.

The US Treasury is moving to stop the practice, which can be used by arms and drug traffickers to launder funds and lands the United States in third in the Tax Justice Network's ranking of the world's least transparent countries, well above Panama.

"We're in the last stages of drafting the final rule," a Treasury official told AFP.

The most popular tax havens (AFP Photo/Laurence Saubadu, Jonathan Jacobsen)

'Very frightened'

But there is another possible reason that Americans are not so visible in the Panama Papers.

Spurred by the need to halt huge, blatant tax evasion by Americans using foreign banks, Washington in recent years has cracked down with lawsuits, arrests and tighter laws that have targeted both the banks offering safe haven and those hiding money in them.

Swiss banks were hit in particular. UBS and Credit Suisse, respectively, had to pay fines of $780 million and $2.6 billion for having helped US citizens hide money.

The result, Shaxson said, is that now "there are a few tax havens around the world that are very frightened of American clients, because they know that the US can hit them."

Nevertheless, the seeming absence of Americans from the Panama Papers has fed conspiracy theories, such as claims the leak of the files was orchestrated by the CIA to destabilize Russia and other countries.

But Walker Guevara said there is still a lot to be examined in the trove of 11.5 million documents that make up the Panama Papers, and there could be more about Americans in there.

"It's a huge trove of documents and maybe there's something hiding there that we haven't found yet. It's a work in progress."

"@USTreasury has taken new action to prevent more corporations from taking advantage of one of the most insidious tax loopholes" —@POTUS

— The White House (@WhiteHouse) April 5, 2016

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President Obama Just Took a Major Step in Response to the Panama Papers
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Top FIFA officials among 16 indicted in widening scandal

Yahoo – AFP, 4 Dec 2015

US Attorney General Loretta Lynch speaks about the corruption scandal

 engulfing FIFA at the Justice Department in Washington, DC, on December 3,

2015 (AFP Photo/Nicholas Kamm)

Washington (AFP) - Sixteen more top football officials were charged in a dramatic widening of the FIFA corruption scandal on Thursday, as US prosecutors vowed to leave no stone unturned in their quest to root out graft.

Several senior FIFA officials from the past or present were named in a 92-count US Justice Department indictment which came after a series of dawn raids at a luxury hotel in Zurich hosting FIFA officials.

Among those indicted on Thursday were the president of the South American Football Confederation (CONMEBOL), Juan Angel Napout, and Alfredo Hawit, head of the North, Central American and Caribbean ruling body (CONCACAF).

Other notable officials indicted include Ricardo Teixeira, the once-powerful former head of the Brazilian Football Confederation and a former FIFA vice-president.

The indicted also included Ariel Alvarado, a Panamanian official who currently sits on FIFA's disciplinary committee.

The main players in the deepening FIFA corruption scandal (135 x 156 mm)

(AFP Photo/S.Ramis-K.Tian/P. Defosseux)

"The message from this announcement should be clear to every culpable individual who remains in the shadows, hoping to evade our investigation: You will not wait us out. You will not escape our focus," US Attorney General Loretta Lynch said, describing the allegations as "outrageous" and "unconscionable."

Lynch revealed that eight more people indicted since authorities launched an earlier wave of FIFA raids and arrests in Switzerland in May had now pleaded guilty.

"I can report eight additional defendants have agreed to plead guilty for their involvement in the corruption scheme," she said.

Millions forfeited

Among those who had pleaded guilty were Jeffrey Webb, a former FIFA vice president and head of CONCACAF.

Webb, who was indicted when the corruption scandal erupted earlier this year, has pleaded guilty to racketeering conspiracy, three counts of wire fraud and three counts of money laundering conspiracy.

As part of his plea deal, Webb has agreed to forfeit more than $6.7 million in assets.

Webb and former CONCACAF chief Jack Warner, who was indicted earlier, were also accused of siphoning off cash intended for disaster relief, according to the new indictment.

"Certain of the defendants and their co-conspirators, including the defendant Jack Warner and Jeffrey Webb, took advantage of these opportunities and embezzled or otherwise personally appropriated funds provided by FIFA, including funds intended for natural disaster relief," the indictment read.

Several senior FIFA officials from the past or present were named in a

 92-count US Justice Department indictment which came after a series of dawn

 raids at a luxury hotel in Zurich hosting FIFA officials The unprecedented 

corruption scandal engulfing FIFA widened on December 3 with the arrests of

 two more top officials in another dramatic dawn raid at a luxury hotel in Zurich.

(AFP Photo/Fabrice Coffrini)

Napout and Hawit are both in Switzerland where they are now fighting extradition to the United States, officials said.

Both men are suspected of taking millions of dollars in bribes in return for selling marketing rights for regional tournaments and World Cup qualifying matches, according to the US indictment.

The investigation also covered the payment and receipt of bribes in connection with the sponsorship of the Brazilian soccer federation by a major US sportswear company, and the selection of the host country for the 2010 World Cup and the 2011 FIFA presidential election. Lynch would not confirm that the US sportswear company was Nike.

Federal Bureau of Investigation director James Comey meanwhile said those indicted had run corrupt schemes spanning decades.

"For decades, these defendants used their power as the leaders of soccer federations throughout the world to create a web of corruption and greed that compromises the integrity of the beautiful game," Comey said.

Lynch meanwhile dismissed claims by FIFA's suspended President Sepp Blatter that the US investigation was triggered by sour grapes over the country's failed bid for the 2022 World Cup, controversially awarded to Qatar in a 2010 vote.

"I think (Blatter) is well aware of the nature of our charges," Lynch said.

"This covers years of conduct by dozens and dozens of people from the past into the future. I called it outrageous and unconscionable. That still stands."

Brazil's Marin agrees to US extradition in FIFA corruption case

Jose Maria Marin, who led the organizing committee for World Cup 2014 in Brazil, has agreed to relocation to the US pending trial. He's wanted on racketeering charges and could face up to 20 years.

Deutsche Welle, 28 Oct 2015

Switzerland's justice ministry said in a statement on Wednesday that the 83-year-old Marin "must be placed in the custody of a US police escort and taken to the USA within 10 days." The ministry did not provide further details of the handover.

Marin was among the FIFA officials arrested on May 27 in the FBI's dawn raids that were the precursor to Sepp Blatter's re-election as president, and then his announcement that he would step aside days later.

The former president of the Brazilian Football Confederation, who coordinated the country's 2014 World Cup preparations, is accused of taking "bribes worth millions of dollars from sports marketing companies" in connection with four Copa America tournaments and the Copa do Brasil from 2013 through 2022. Marin agreed to extradition at a judicial hearing in Geneva on Wednesday.

Marin's World Cup dreams crumbled
with Neymar's injury, then Germany's goal
rush in the semifinal

"He is alleged to have shared these bribes with other football officials," according to the Swiss justice ministry. Marin could face up to 20 years if convicted.

Of the seven officials arrested in May at FIFA's annual conference, Marin was the last to decide whether or not to fight the US extradition order. Cayman Islands banker Jeffrey Webb agreed to cooperate in May, and pleaded not guilty in July; the remaining five all intend to challenge extradition in Swiss courts.

Marin succeeded Ricardo Teixera, himself implicated in a previous FIFA scandal concerning kickbacks on World Cup broadcasting deals, as the president of Brazil's CBF in 2012. He also took over the World Cup 2014 committee as Teixera resigned. He's one of 14 football and marketing officials indicted by US officials in one of the major investigations into FIFA currently underway. Most suspects in the FBI probe - which began with a focus purely on FIFA dealings in the US - hail from either North or South America.

At the time of his arrest, Marin was working on preparations for the football tournament at the 2016 Summer Olympics, to be held in Rio de Janeiro.

msh/rd (AP, Reuters)

Switzerland approves extradition to US of FIFA's Eduardo Li

Yahoo – AFP, 29 Sep 2015

The Swiss justice ministry approves the extradition to the United States of the
former head of the Costa Rican Football Federation Eduardo Li, pictured on
May 17, 2011 (AFP Photo/Rodrigo Arangua)

Geneva (AFP) - The Swiss justice ministry on Tuesday approved the extradition to the United States of Costa Rican national Eduardo Li, one the FIFA officials whose arrest in May ignited an unprecedented crisis in world football.

"The Federal Office of Justice (FoJ) has approved the extradition of Eduardo Li to the USA. The Costa-Rican citizen has 30 days in which to appeal to the Swiss Federal Criminal Court against the FOJ's ruling," a statement said.

Li, the former head of the Costa Rican Football Federation, was one of seven FIFA officials arrested in Zurich on May 27 following a US indictment on charges that he took bribes while selling football television rights.

"Li massively influenced the competitive situation and distorted the market for media rights in connection with the World Cup qualifying matches," said the FoJ statement.

"Other sports marketing companies were placed at a disadvantage. Furthermore, among other things the Costa Rican Football Federation was prevented from negotiating marketing agreements which might have been more favourable."

The FoJ said that "all of the conditions for extradition" had been fulfilled.

Swiss authorities had already approved the extradition to the US to face the same charges of others arrested in the corruption sting -- former Venezuelan Football Federation president Rafael Esquivel and Uruguayan former FIFA vice-president Eugenio Figueredo, while the former president of the Nicaraguan Football Federation Julio Rocha agreed last month to be extradited back to his home country.

Although not among the seven arrested, FIFA president Sepp Blatter is being investigated by Swiss prosecutors over the sale of World Cup television rights and a $2 million (1.8 million euros) payment to UEFA president Michel Platini.

Two other former FIFA officials, Jack Warner and American Chuck Blazer, have been banned from all football-related activities for life for their roles in the sale of television rights at grossly deflated values.

Warner is fighting extradition to the US from his home on Trinidad and Tobago while Blazer has turned whistleblower and is assisting US authorities.

US authorities have charged 14 people in relation to more than $150 million (134.5 million euros) in bribes given for television and marketing deals.

FIFA scandal engulfs Blatter and Platini

Yahoo – AFP, Benjamin Simon, 25 Sep 2015

FIFA President Sepp Blatter (L) shakes hands with UEFA president Michel 

Platini after being re-elected following a vote in Zurich on May 29, 2015 (AFP 

Photo/Michael Buholzer)

Zurich (AFP) - The FIFA scandal on Friday engulfed Sepp Blatter and Michel Platini, the two most powerful figures in world football, with Swiss prosecutors investigating whether a two million dollar payment from Blatter to the French legend was illegal.

Swiss investigators opened criminal proceedings against FIFA president Blatter and searched his office as they also quizzed UEFA counterpart Platini.

"Swiss criminal proceedings against the President of FIFA, Mr. Joseph Blatter, have been opened on September 24, 2015 on suspicion of criminal mismanagement...and -– alternatively -– misappropriation," said a statement from Switzerland's attorney general's office (OAG).

Former FIFA vice-president Jack Warner

 arrives at the Port-of-Spain Magistrates 

court for the extradition hearing against

 him, on September 25, 2015 (AFP Photo/

Alva Viarruel)

Blatter, 79, is standing down because of corruption scandals involving other top officials and Platini had been favourite to win an election to be held in February to succeed him.

The Swiss prosecutor said that "the defendant Joseph Blatter" had been questioned and "the office of the FIFA President has been searched and data seized".

Blatter was questioned as "a suspect". The statement added that Platini had been questioned "as a person called upon to give information".

Platini, 60, has been head of UEFA since January 2007 which made him an automatic FIFA vice-president.

Blatter's lawyer Richard Cullen said in a statement that the FIFA boss was cooperating with Swiss authorities and that a review of the evidence would show "no mismanagement occurred".

Blatter "is suspected of making a disloyal payment of 2.0 million Swiss francs ($2.04 million/1.8 million euros) to Michel Platini, president of Union of European Football Associations (UEFA), at the expense of FIFA," the OAG said.

The alleged payment was made in February 2011 "for work performed between January 1999 and June 2002."

Later Friday, Platini insisted the payment had been for "contractual" work he had carried out.

"Concerning the payment that was made to me, I wish to state that this amount relates to work which I carried out under a contract with FIFA," said the UEFA boss.

"I was pleased to have been able to clarify all matters relating to this with the authorities."

FIFA this month suspended Blatter's right-hand man Jerome Valcke after he 

was accused of involvement in an accord to sell tickets for the 2014 World Cup 

at inflated prices (AFP Photo/Sebastien Bozon)

He added: "I also made clear to the Swiss authorities that since I live in Switzerland I am available to speak with them any time to clarify any matters relating to the investigations."

Friday's dramatic turn of events came after a press conference, that Blatter was scheduled to give, was cancelled.

Platini is a former Blatter ally who turned against the veteran Swiss sports baron over the past 18 months as FIFA's troubles mounted.

The investigation is also into Blatter's links with Jack Warner, a former FIFA vice-president now at the centre of a US investigation.

The attorney general said Blatter was suspected of making a deal "unfavourable to FIFA" with the Caribbean Football Union, which Warner used as his power base.

'Properly prepared'

According to Blatter's lawyer Cullen, who is based in Virginia, that contract was "properly prepared and negotiated" by FIFA staff with responsibility for such matters.

A Trinidad court on Friday announced that it would rule on December 2 on whether Warner should be extradited to the United States.

Warner is one of 14 soccer officials and business executives charged by US prosecutors of involvement in more than $150 million in bribes for football broadcasting and marketing deals.

Nearly all of the suspects are from central and South America. Until recent days, FIFA's top leadership had escaped accusations flying around the world body, which earns $5 billion from the World Cup.

Swiss officials arrested seven FIFA officials, who are among the US suspects, on May 27 in Zurich just ahead of the world body's congress.

Blatter was re-elected to a fifth term at the congress despite the storm but then announced on June 4 that he would stand down.

Since then FIFA has announced steps to make reforms but have been shaken by new corruption claims.

A TV crew prepares to film in front of 

the FIFA logo at the FIFA headquarters

 on September 25, 2015 in Zurich (AFP

Photo/Fabrice Coffrini)

FIFA this month suspended Blatter's right-hand man Jerome Valcke after he was accused of involvement in an accord to sell tickets for the 2014 World Cup at inflated prices.

Valcke strongly denied the allegations but FIFA handed over emails from the suspended secretary general that had been demanded by the Swiss attorney general.

He is also under suspicion over what he knew about a $10 million payment from the South African FA to an account controlled by Warner through FIFA in 2008.

US prosecutors believe it was a bribe intended to get Caribbean support for South Africa's bid for 2010 World Cup.

Swiss prosecutors are also looking into FIFA's award of the 2018 and 2022 World Cups to Russia and Qatar, respectively. Both have strongly denied any wrongdoing in their campaigns to secure the tournaments.

US attorney general Loretta Lynch made it clear this month that her department's inquiry was growing and more major charges could be expected.

From Blatter to Webb: Key players in the #FIFA scandal pic.twitter.com/uzwQ09Eeum

— Agence France-Presse (@AFP) 25 september 2015

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Argentine exec pleads not guilty in FIFA case

Yahoo – AFP, 31 July 2015

A photograph taken from the Wanted Persons link at
the Interpol site shows Argentinian sports marketing
executive Alejandro Burzaco who has been indicted
by US authorities in the FIFA corruption scandal 
on June 9, 2015 (AFP Photo)

New York (AFP) - An Argentine sports marketing executive on Friday pleaded not guilty and posted a $20 million bond after appearing in a US court to face charges related to the FIFA corruption scandal.

Alejandro Burzaco surrendered to Italian police in June before flying to New York to face US justice in a case that has rocked world soccer.

He is one of 14 FIFA officials and sports marketing executives accused of soliciting and receiving more than $150 million in bribes and kickbacks spanning 24 years.

US Attorney General Loretta Lynch unveiled the 47-count indictment in May.

Burzaco, 51, pleaded not guilty to three charges of racketeering, money laundering and wire fraud conspiracy and posted a $20 million bond for his release, underwritten by friends and family.

The defendant cut an elegant figure in the US federal court in Brooklyn, dressed in a dark suit, a pale blue tie and a crisp white shirt, and responded politely to the magistrate's questions.

Government prosecutors told Magistrate Judge Vera Scanlon that Burzaco was not considered a flight risk given that he had handed himself in overseas.

Burzaco's decision to surrender has triggered speculation he may be poised to negotiate a deal with prosecutors.

His lawyer made no comment after leaving court.

The assets put up to guarantee the $20 million bond offered a breathtaking insight into the wealth that the dual Argentine-Italian citizen has accumulated, and the trust of close friends and family.

$15 million company share

They include cash deposits of $3.3 million, to be made by October 1, three properties in the United States owned by his sister and a close friend.

It also included Burzaco's 20 percent ownership of a company -- a share estimated to be worth more than $15 million.

Among the six relatives and friends underwriting his bond were a sister with an annual income of $300,000 and a net worth of more than $1 million and a friend with an estimated net worth of more than $10 million.

Burzaco's ex-wife, who was also in court, had flown from Buenos Aires to support him, his lawyer told the magistrate.

Among conditions of his release are that he live in an FBI-approved residence within 50 miles of the court.

He must surrender his passports to the FBI, submit to electronic tagging and restrict his movements to New York and Long Island.

On July 18, former FIFA vice president Jeffrey Webb also pleaded not guilty in connection with the same scandal.

Arrested in Switzerland in May, he was the only one not to fight extradition.

The Cayman Islands-British citizen posted a $10 million bond and was ordered not to stray further than 20 miles of the courthouse.