US expands probe into FIFA bribes, firms under focus

US expands probe into FIFA bribes, firms under focus

Saturday, July 18, 2015 11:22 am


Fifa officials, clockwise from top left, Rafael Esquivel, Nicolás Leoz, Jeffrey Webb, Jack Warner, José Maria Marin, Eugenio Figueredo and Eduardo Li, who are among those charged by the US Department of Justice with allegedly receiving bribes worth more than $100m.

Fifa officials, clockwise from top left, Rafael Esquivel, Nicolás Leoz, Jeffrey Webb, Jack Warner, José Maria Marin, Eugenio Figueredo and Eduardo Li, who are among those charged by the US Department of Justice with allegedly receiving bribes worth more than $100m.

United States securities regulators are examining the behaviour of several companies with links to FIFA or other soccer bodies caught up in a major corruption scandal to see if there were possible violations of U.S. federal bribery laws, a person with knowledge of the matter said.

The civil probe, which is in its early stages and may not lead to any findings of wrongdoing or enforcement action, is being conducted by the U.S. Securities and Exchange Commission. It opens a new front in a wide-ranging investigation by the U.S. and Swiss authorities into bribery involving soccer officials, marketing executives and various companies. In late May, the U.S. indicted nine soccer officials – most of whom held positions at FIFA – and five executives for a range of offences related to more than $150 million of alleged bribes and kickbacks.

The SEC probe centres on publicly-traded companies who have been involved in soccer contracts, such as athletic shoes and sportswear company Nike Inc, said the source, who asked not to be named because of the non-public nature of the investigation.

The exact scope of the probe and the names of other companies being scrutinized could not be learned.

A SEC spokeswoman declined to comment.

Although Nike has not been specifically named or charged with any wrongdoing, the company was swept into the scandal when U.S. prosecutors in the indictment described bribes and kickbacks in connection with a landmark 1996 Nike deal in Brazil.

The description of the $160 million, 10-year deal signed by “Sportswear Company A” matched exactly the details of Nike’s agreement to become the footwear and apparel supplier and sponsor of the Brazilian national team, which at that time was the most successful in the world.

In a statement on Friday, a Nike spokesman said that the company “is committed to cooperating with any government investigation into the FIFA matter.”

In late May, Nike said that the government had not alleged that it violated the law or knowingly took part in a kickback scheme.

Nike is the only U.S. public company to be referenced in the U.S. indictment of the officials and executives.

Major publicly traded companies in the U.S. who are FIFA sponsors include McDonald’s Corp, Visa Inc and Coca-Cola Co.

On Friday, Coca-Cola and McDonald’s both added pressure on FIFA for reforms only days before its executive committee meets on Monday.

*Reuters


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