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FIFA hit by court in ISL fraud trail
FIFA & UEFA - 04 July, 2008
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A Swiss court in Zug ruled that FIFA failed to oversee marketing payments and order the governing body to pay CHF 118,000 in costs to defendants accused to fraudulent activity.
The fraud inquiry, which was sparked by FIFA, involved six former executives of ISL/ISMM, former FIFA’s marketing partner which collapse seven years ago with an estimated debt of USD 300 million.
The collapse of ISL/ISMM lead FIFA to struggle marketing problems for the television and sponsorship rights of the 2002 and 2006 World Cups.
The court decided that FIFA was aware of the financial difficulties of ISL/ISMM already months before the company went bankrupt, but took no action.
The court found Jean-Marie Weber, ISL/ISMM company leader who transferred CHF 90,000 to his personal account, guilty of embezzlement.
Weber was a long term associate of FIFA president Sepp Blatter, who is described in court documents as the strongman behind the ISL/ISMM group of companies.
Two others, Hans-Juerg Scmid and Hans-Peter Weber (no relation to Jean-Marie) were found guilty of acquiring fraudulent business documents using ISL/ISMM as a parent company. Scmid and his accomplice set up fictitious companies using ISL/ISMM as a parent company.
Nicolas Leoz, former CONMEBOL president, was also accused of illegal activity for receiving payments totaling USD 130,000.
79 years old Leoz denied any connection with the marketing company and was cleared due to lack of evidences.
Although no illegal activity could be proved, the case has revealed how sports officials received large sums for arranging lucrative sponsorship and television deals.
Swiss prosecution, headed by Marc von Dach, said it will consider appealing verdict and a second trial may be opened to investigate whether any FIFA officials received illegal payments from ISL/ISMM.
The fraud inquiry, which was sparked by FIFA, involved six former executives of ISL/ISMM, former FIFA’s marketing partner which collapse seven years ago with an estimated debt of USD 300 million.
The collapse of ISL/ISMM lead FIFA to struggle marketing problems for the television and sponsorship rights of the 2002 and 2006 World Cups.
The court decided that FIFA was aware of the financial difficulties of ISL/ISMM already months before the company went bankrupt, but took no action.
The court found Jean-Marie Weber, ISL/ISMM company leader who transferred CHF 90,000 to his personal account, guilty of embezzlement.
Weber was a long term associate of FIFA president Sepp Blatter, who is described in court documents as the strongman behind the ISL/ISMM group of companies.
Two others, Hans-Juerg Scmid and Hans-Peter Weber (no relation to Jean-Marie) were found guilty of acquiring fraudulent business documents using ISL/ISMM as a parent company. Scmid and his accomplice set up fictitious companies using ISL/ISMM as a parent company.
Nicolas Leoz, former CONMEBOL president, was also accused of illegal activity for receiving payments totaling USD 130,000.
79 years old Leoz denied any connection with the marketing company and was cleared due to lack of evidences.
Although no illegal activity could be proved, the case has revealed how sports officials received large sums for arranging lucrative sponsorship and television deals.
Swiss prosecution, headed by Marc von Dach, said it will consider appealing verdict and a second trial may be opened to investigate whether any FIFA officials received illegal payments from ISL/ISMM.
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