Bribery and Kickbacks

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    Floyd Layne, 95, Basketball Player Tarnished by Gambling Scandal, Dies

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    He helped City College win two national championships in 1950 before pleading guilty in a point-shaving scheme. He later became City’s basketball coach and a mentor.Floyd Layne, who helped City College win both the N.C.A.A. and N.I.T. basketball championships in March 1950 but who shattered his career in a point-shaving scandal, died on Friday. Layne, who eventually found redemption working with young people in recreation programs and as City College’s head basketball coach, was 95.His death was confirmed by Karina Jorge, an assistant director of athletics at City College, who did not say where he died.An outstanding ballhandler and defensive player at guard, the 6-foot-3-inch Layne was among four sophomores in the starting lineup for an unheralded City team that won the National Invitation Tournament and the N.C.A.A. tournament at Madison Square Garden in championship games held 10 days apart.But late in the following season, players from powerful teams like City College, Long Island University, Bradley University and the University of Kentucky were arrested after being accused of taking bribes from professional gamblers to lose games or keep margins of victory within the point spread established to attract bettors.When three of Layne’s teammates were arrested in mid-February 1951, accused of point-shaving, students staged a campus rally to support the squad, and they carried the presumably unsullied Layne on their shoulders.But Layne was soon arrested as well. He was accused of agreeing to help keep City College from exceeding victory margins set by gamblers in their point spreads for games with Missouri, Arizona and Boston College during the 1950-51 season. Layne led detectives to the bedroom of his Bronx home, where he had hidden $2,890 — all but $110 of the bribe money — in a rolled-up handkerchief embedded in the dirt of a flower pot.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Judge Vacates Convictions in Bribery Case Over Soccer Broadcast Deals

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      Hernán López, a former Fox employee, and an Argentine sports marketing company had been convicted of participating in a bribery scheme to secure rights to widely viewed tournaments.Less than six months after a federal jury convicted a former Fox employee and an Argentine sports marketing company of participating in a scheme to pay bribes in exchange for lucrative soccer broadcasting contracts, a judge in Brooklyn vacated the convictions on Friday.In a 55-page ruling, the judge, Pamela K. Chen, concluded that the federal wire fraud statute under which the defendants had been convicted did not apply to their actions.In a seven-week trial that ended in March, prosecutors alleged that Hernán López, who holds dual American and Argentine citizenship and who until 2016 worked for a unit of what was then known as 21st Century Fox, had been part of a scheme to make millions of dollars in secret annual payments to the presidents of national soccer federations in order to secure the rights to two widely viewed South American soccer tournaments.Mr. Lopez — who prosecutors also said had leveraged loyalty he garnered through bribes to help Fox beat out ESPN in its bid for the U.S. broadcasting rights for the 2018 and 2022 men’s World Cups — was convicted on one count of money laundering conspiracy and one count of wire fraud conspiracy. He faced up to 40 years in prison.Prosecutors said that Mr. López’s co-defendant, the sports marketing company Full Play Group, had paid bribes for the rights to multiple World Cup qualifiers, exhibition matches and tournaments. Full Play was convicted on six fraud and money laundering counts and could have faced stiff financial penalties.A key factor in Judge Chen’s decision, handed down late Friday, was the scope of a law under which the defendants had been charged, known as the honest services wire fraud statute.Until 2016, Hernán López worked for a unit of what was then known as 21st Century Fox. Fox has not been accused of wrongdoing.Brendan Mcdermid/ReutersJudge Chen cited a ruling by the U.S. Supreme Court in May, in which the justices threw out two fraud convictions stemming from public corruption prosecutions during Gov. Andrew M. Cuomo’s administration in New York. In one of the cases, Percoco v. United States, the justices considered whether a former aide to Mr. Cuomo could be prosecuted under a federal law that makes it a crime to deprive the government of “honest services” for conduct that took place after he left his government role.In light of that decision, and the absence of precedent applying that law to bribery of foreign employees of foreign nongovernment employers, Judge Chen wrote in her ruling that she was compelled to “find that the honest services wire fraud statute does not encompass foreign commercial bribery as charged against defendants.”“We are obviously pleased with Judge Chen’s thorough and correct decision,” John Gleeson, a lawyer for Mr. López, said in a statement on Saturday.Lawyers for Full Play wrote in a statement on Saturday that their client “greatly appreciates the court’s complete vindication.”The case in Brooklyn was one of many spawned by a yearslong corruption investigation by the U.S. Department of Justice into international soccer officials, which has led to more than two dozen convictions and over $100 million in forfeitures.Beyond the immediate acquittals of Mr. López and Full Play, the ruling could have significant implications for other defendants in the sprawling case. Two South American soccer officials were convicted after the first trial, in 2017, and could now seek acquittals, and at least four other defendants who have evaded extradition, including the Argentine owners of Full Play, could see the charges against them dropped. So far, the court has not spoken about those issues.John Marzulli, a spokesman for the U.S. attorney’s office for the Eastern District of New York, said on Saturday that the prosecutor’s office was reviewing the decision. More

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      Fox Sports Could Be Focus of FIFA Trial in Brooklyn

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      Two former executives are accused of paying bribes to obtain broadcast rights, including for the World Cup. Testimony could reveal what the company knew.The World Cup may be over, but the FIFA corruption scandal never seems to end.Nearly eight years after a series of predawn raids exposed corruption at the highest levels of international soccer, and more than five years after the conclusion of the first trial in the Justice Department’s sprawling probe of bribery in the sport, a second trial is set to begin on Tuesday in federal court in Brooklyn.Once more, the defendants stand accused of being involved in complex schemes to pay millions of dollars in exchange for the rights to matches. Once more, prosecutors are expected to focus on the same tournaments and to rely on many of the same witnesses. They will make their arguments before the same judge in the same courtroom and, they hope, they will add three more convictions to the long-running case’s already impressive ledger: to date, the government has netted 29 convictions in the case.But after years of focusing on soccer officials and sporting bureaucrats, the new trial has the potential for a dramatic twist: revelations about the involvement of one of FIFA’s most important media partners, Fox Corporation, in a secretive scheme to pay millions of dollars in bribes to enhance its position in international soccer — and to seize the sport’s biggest broadcasting prize, the rights to the World Cup itself, from a rival network.Fox itself is not on trial. But the fact that two of its former executives have been accused of orchestrating bribes, hiding payments and trafficking in insider information could damage the reputation of the $17 billion media giant. It could also breathe fresh relevance into a corruption investigation that once captured worldwide attention but which long ago faded from the news.Since the conclusion of the last trial, FIFA, soccer’s governing body, which is based in Zurich, has managed to stage two World Cups — in Russia in 2018 and Qatar last year — and bank record revenue, all while casting itself as the victim of its own corruption. It has been a successful strategy: Last summer, the Justice Department returned $92 million of the money it had recovered in the case to FIFA and its federations, part of a plan to award the soccer bodies more than $200 million in restitution overall.Gianni Infantino, the current FIFA president, has repeatedly made the claim that the organization he leads is now free of corruption. But the case, at least in the view of the Justice Department, is far from over.In the trial that begins this week, Hernán López, the former chief executive of Fox International Channels, and Carlos Martínez, who served as president of the subsidiary’s Latin American operations, face wire fraud and money laundering charges. Prosecutors have accused them of running a scheme to pay bribes to “advance the interests of Fox” and help the company secure television broadcast rights to both the popular Copa Libertadores, the South American club championship, and the World Cup. If found guilty, López and Martínez face up to 20 years in prison.A third defendant in the trial, the Argentine sports marketing firm Full Play Group SA, faces a laundry list of charges for what prosecutors described as years of bribe-paying to win rights to tournaments. If convicted, it could join a short and ignominious list of corporations found guilty of felonies in the United States, among them banks, energy companies and the Trump Organization.Lawyers for all three defendants declined to discuss the case, as did a spokesman for the U.S. attorney’s office for the Eastern District of New York. But new convictions in federal court could help prosecutors justify the millions of dollars spent on an investigation that began in secret more than a dozen years ago and long ago more than proved its point: that global soccer has a profound corruption problem and — critically — that almost nothing is outside the reach of American justice.FIFA’s president, Gianni Infantino, has claimed his organization is free of corruption, but a trial in the United States could bring new revelations.Martin Meissner/Associated PressThe trial in Brooklyn, which is expected to last four to six weeks, largely concerns activities in South America. According to the March 2020 indictment, López, who holds American and Argentine citizenship, and Martínez, a dual citizen of the United States and Mexico, helped pay and conceal “annual bribe and kickback payments” to at least 14 soccer officials to secure television rights to two lucrative annual club championships, the Copa Libertadores and the Copa Sudamericana.Prosecutors also contend that López and Martínez used relationships forged through bribes to obtain “confidential information” from a top FIFA executive from Argentina that helped the company secure the American broadcast rights to the 2018 and 2022 World Cups. Rights to the event had been held by ESPN since the 1994 edition of the tournament, but in 2011, Fox announced it had snatched them away. Four years later, FIFA announced it had also awarded Fox rights to the incredibly lucrative 2026 World Cup, to be held in the United States, Canada and Mexico, without so much as giving ESPN a chance to bid.The allegations involving Fox appear to match 2017 trial testimony given by Alejandro Burzaco, the former chief executive of the Argentine sports marketing firm Torneos, who pleaded guilty in the case and has been cooperating with the government.As the prosecution’s star witness, he claimed López and Martínez helped cover up $3.7 million in bribes by using a phony contract with a firm partially owned by Fox.Fox has denied any knowledge of any bribes, saying at the time that “any suggestion that Fox Sports knew of or approved of any bribes is emphatically false.” López and Martínez have emphatically denied the charges against them in court filings, claiming that any bribes would have been paid by Burzaco.López left Fox in January 2016, seven months after the first indictment in the FIFA case, and subsequently founded the podcasting company Wondery, which he sold to Amazon for a reported $300 million nine months after he was indicted in the soccer case.Both his fate, and that of Martínez, may depend heavily on new testimony from Burzaco, who is once again expected to be the government’s chief witness — and, potentially, the source of any major revelations. 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      Brussels Court Orders 3 Linked to Qatar Bribery Case to Stay in Prison

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      Belgian officials said they suspected a Gulf country of trying “to influence the economic and political decisions of the European Parliament.”BRUSSELS — A court in Belgium ruled on Wednesday that two suspects in a case linking current and former European lawmakers to alleged bribery by Qatar should remain in prison until trial and that a third should wear an electronic monitor, as the snowballing scandal continued to rock European Union institutions.Four people, including Eva Kaili, a former vice president of the European Parliament who is from Greece, were charged last week with corruption, money laundering and participation in suspected bribes from Qatar, in what may be the biggest scandal in the history of the Parliament.A court hearing for Ms. Kaili was postponed until Dec. 22, the office of the Belgian federal prosecutor said on Wednesday, so she remains imprisoned outside Brussels. Parliamentary lawmakers also stripped Ms. Kaili of her title as vice president during a plenary session in France.Court documents seen by The New York Times identified the other suspects as Pier Antonio Panzeri, a former member of Parliament; Francesco Giorgi, Ms. Kaili’s partner and an assistant to a current European lawmaker; and Niccolo Figa-Talamanca, secretary general of a Brussels-based charity. Mr. Panzeri and Mr. Giorgi were ordered to remain detained until trial, and Mr. Figa-Talamanca was ordered to be placed under electronic monitoring.Two others were arrested in Italy in connection with the case, the Belgian prosecutor’s office said.Belgian officials said they suspected a Gulf country of trying “to influence the economic and political decisions of the European Parliament.”The Belgian intelligence services have been working for more than a year with similar services in other countries to “map suspected bribery” of European lawmakers, the justice ministry told The Times.A Brief Guide to the 2022 World CupCard 1 of 9What is the World Cup? More