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IRS: This is a World Cup of fraud and we are issuing Fifa a red card

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IRS: This is a World Cup of fraud and we are issuing Fifa a red card


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By Peter Staunton
May 27, 2015 17:10:00

US Justice Department, FBI and IRS officials conducted a press conference outlining American charges against those individuals implicated in latest Fifa scandal

The unfolding scandal which has engulfed Fifa has been described as a "World Cup of fraud" by the chief of the Inland Revenue Service's (IRS) criminal investigation, Richard Weber.

The IRS chief has vowed to "issue Fifa a red card" following the indictment of 14 individuals by the US Justice Department for corruption.

Weber was speaking alongside new US Attorney General Loretta Lynch in New York on Wednesday where the indictments against Fifa officials past and present as well as five businessmen accused of wire fraud, money laundering and racketeering were unsealed.

Current Fifa vice president and president of Concacaf Jeffrey Webb, fellow Fifa vice president Eugenio Figueredo, Fifa executive committee member-elect Eduardo Li and former Brazil FA chief Jose Maria Marin were among those named by US prosecutors as suspects in the scandal which has rocked Fifa.

"Many of the individuals and organisations we will describe today were entrusted with keeping soccer open and accessible to all," Lynch said.

"They held important responsibilities at every level, from building soccer fields for children in developing countries to organising the World Cup.

"They were expected to uphold the rules that keep soccer honest and protect the integrity of the game.

"Instead, they corrupted the business of worldwide soccer to serve their interests and enrich themselves. This Department of Justice is determined to end these practices; to root out corruption; and to bring wrongdoers to justice."

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Jeffrey Webb | One of the officials arrested on Wednesday

The charges brought by the Americans relate in large to broadcast and commercial rights for major tournaments over the past two decades and which continue to the present day with the 2016 Centennial Copa America in the US estimated to account for some $110 million (€100m) in bribes.

"Beginning in 1991, two generations of soccer officials, including the then-presidents of two regional soccer confederations under Fifa – the Confederation of North, Central American and Caribbean Association Football, known as Concacaf, which includes the United States, and the South American Football Confederation, or Conmebol, which represents organized soccer in South America – used their positions of trust within their respective organisations to solicit bribes from sports marketers in exchange for the commercial rights to their soccer tournaments. They did this over and over, year after year, tournament after tournament.

"For instance, in 2016, the United States is scheduled to host the centennial edition of the Copa America – the first time that tournament will be held in cities outside South America. Our investigation revealed that what should be an expression of international sportsmanship was used as a vehicle in a broader scheme to line executives’ pockets with bribes totaling $110m – nearly a third of the legitimate costs of the rights to the tournaments involved."

Acting US attorney in the Eastern District of New York, Kelly Currie said: “All of these defendants abused the US financial system and violated US law. And we intend to hold them accountable.”

Currie also named directly the current Fifa vice president and Concacaf president Jeffrey Webb who, he said "used his position of trust" to "solicit and collect bribes from sports marketing executives who needed his support to get contracts.”

The FBI director, James Comey, declared that the game of football had been "hijacked" but nonetheless “this hijacking is being met with a very aggressive prosecutorial response in order to change behavior and send a message.”

Swiss authorities carried out seven arrests at the Baur au Lac hotel in Zurich on Wednesday morning where Fifa delegates had been gathered ahead of the 65th Fifa Congress due to take place on Thursday and Friday.

The US is seeking the extradition of all seven arrested at dawn in Zurich as well as Nicolas Leoz, the former Conmebol president, Jack Warner, the former president of Concacaf, and the five businessmen with no official Fifa positions who have been implicated.


 

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'Fifa will kill football' - Uefa calls for election to be postponed


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By Peter McVitie
May 27, 2015 18:54:23

Votes will be cast on Friday as Prince Ali bin Al-Hussein looks to dethrone Sepp Blatter at the head of world football's governing body

Uefa has called for Fifa to postpone Friday's presidential election in the wake of the latest corruption scandal and says that the governing body will "kill football" if it does not answer pleas for radical reform.

On Wednesday, 14 officials were indicted for racketeering, fraud and money laundering following dawn raids in Switzerland which resulted in the arrest of seven Fifa officials.

The governing body will hold its presidential election on Friday, with Sepp Blatter standing for re-election against Prince Ali bin Al-Hussein.

However, Uefa urged Fifa to delay the congress and has heavily criticised the organisation, calling for reform to protect the future of the game.

"Today's events are a disaster for Fifa and tarnish the image of football as a whole," a statement read. "Uefa is deeply shocked and saddened by them.

"These events show, once again, that corruption is deeply rooted in Fifa's culture.

"There is a need for the whole of Fifa to be 'rebooted' and for a real reform to be carried out.

"The upcoming Fifa Congress risks to turn into a farce and therefore the European associations will have to consider carefully if they should even attend this Congress and caution a system, which, if it is not stopped, will ultimately kill football.

"The Uefa member associations are meeting tomorrow ahead of the Fifa Congress. At that point, the European associations will decide on what further steps need to be taken to protect the game of football.

"In the meantime, the members of the Uefa Executive Committee are convinced that there is a strong need for a change to the leadership of this Fifa and strongly believe that the Fifa Congress should be postponed, with new Fifa presidential elections to be organised within the next six months."

Fifa has banned 11 officials in the wake of the scandal for ethics breaches, while Switzerland's Office of the Attorney General (OAG) has opened criminal proceedings relating to the 2018 and 2022 World Cups.


 

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Fifa bans 11 officials for ethics breaches


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By Miles Chambers
May 27, 2015 18:51:00

The governing body took the action 12 hours after seven of its members were arrested as part of an investigation into alleged corruption over a 24-year period

Fifa has banned 11 football officials in the aftermath of Wednesday's spate of arrests and indictments over corruption charges from US legal authorities.

Seven people were detained in a joint operation between the US Federal Office of Justice and the Swiss police ahead of the 65th Fifa Congress, in which either Sepp Blatter will be re-elected or Prince Ali bin al Hussein will take his place at the helm.

Fifa claimed it was the "damaged party" and said it backed the "cleaning up" of the world football governing body, which has been hit by a string of reputation-damaging incidents since it handed the World Cup finals of 2018 and 2022 to Russia and Qatar, respectively, under a cloud of bribery claims.

Following the FBI and Inland Revenue Service (IRS) giving the "red card" to Fifa in a damning press conference, the world football governing body reacted by banning 11 personnel from operating within the sport.

"On the basis of investigations carried out by the investigatory chamber of the Ethics Committee and the latest facts presented by the US Attorney’s Office for the Eastern District of New York, the chairman of the adjudicatory chamber of the Ethics Committee, Hans-Joachim Eckert, today banned provisionally 11 individuals from carrying out any football-related activities on a national and international level," a statement on Fifa's website claimed.

"The decision was taken upon the request of the chairman of the investigatory chamber, Dr Cornel Borbély, based on art. 83 par.1 of the Fifa Code of Ethics.

"The banned individuals are: Jeffrey Webb, Eduardo Li, Julio Rocha, Costas Takkas, Jack Warner, Eugenio Figueredo, Rafael Esquivel, Jose Maria Marin, Nicolas Leoz, Chuck Blazer and Daryll Warner."

Eckert acknowledged the severity of the claims against the named and shamed figures with affiliation to Fifa and claimed the organisation was unable to let them get away without punishment.

"The charges are clearly related to football and are of such a serious nature that it was imperative to take swift and immediate action. The proceedings will follow their course in line with our Code of Ethics,” he told Fifa's website.


 

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Presidential candidate Prince Ali: Fifa crisis cannot continue


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May 27, 2015 14:55:00

The Jordanian Prince is set for a run-off against current incumbent Sepp Blatter on Friday as the world football governing body is engulfed by controversy

Fifa presidential candidate Prince Ali Bin Al Hussein of Jordan says that Fifa cannot be allowed to continue in its current guise under the regime of Sepp Blatter following the latest corruption scandal to rock world football's governing body.

Seven arrests were made at the Baur Au Lac hotel in Zurich early on Wednesday morning as Fifa delegates assembled for the 65th Fifa Congress scheduled to take place on Thursday and Friday.

Among those detained by Swiss authorities at the request of the US Justice Department were current Fifa vice presidents Jeffrey Webb and Eugenio Figueredo as well as executive committee member-elect Eduardo Li of Costa Rica.

The seven arrested in Zurich, along with former confederation presidents Jack Warner and Nicolas Leoz as well as five businessmen, are facing extradition to the US on charges of money laundering, wire fraud and racketeering offences.

“We cannot continue with the crisis in Fifa, a crisis that has been ongoing and is not just relevant to the events of today," a statement from the office of Prince Ali reads.

"Fifa needs leadership that governs, guides and protects our national associations. Leadership that accepts responsibility for its actions and does not pass blame. Leadership that restores confidence in the hundreds of millions of football fans around the world.”

Despite the ongoing controversy, Fifa has no plans to shelve the presidential elections which are due to take place on Friday. Prince Ali is the only other candidate in the running following the withdrawals of Michael van Praag and Luis Figo.


 

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2018 and 2022 World Cup finals under corruption investigation


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By Kris Voakes
May 27, 2015 09:40:00

The Swiss Attorney General's Office has been handed electronic data and documents relating to potential money laundering ahead of the 2010 votes

Switzerland's Office of the Attorney General (OAG) has opened criminal proceedings relating to the 2018 and 2022 World Cups, with 10 people set to be questioned regarding criminal mismanagement and money laundering during the bid process which saw the finals awarded to Russia and Qatar.

Electronic data and documents from Fifa IT systems have been handed over to the OAG as part of what the Swiss authority has called a "collection of evidence on co-operative basis", while relevant bank documents have already been seized regarding potential illegal activities ahead of the December 2010 votes.

An OAG statement explained:

"In the Swiss criminal proceedings, opened by the OAG on March 10, 2015, it is suspected that irregularities occurred in the allocation of the Fifa World Cups of 2018 and 2022.

"The corresponding unjust enrichment is suspected to have taken place at least partly in Switzerland. Furthermore, the head office of the damaged party, Fifa, is in Switzerland. For these reasons, investigations are being carried out on the suspicion of criminal mismanagement (Article 158 under 1, Section 3 Swiss Criminal Code / SCC).

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HOTEL CLAMPDOWN | Fifa officials at the Baur au Lac residence in Zurich were arrested on Wednesday

"There are also suspicions of money laundering through Swiss bank accounts (Article 305bis, SCC). Subsequently to today's seizure of files, the OAG and the Swiss Federal Criminal Police will be questioning 10 persons who took part in voting on the allocation of the 2018 and 2022 World Cups as members of the Executive Committee in 2010.

"These persons should be questioned as persons providing information."

This investigation is separate from the US Attorney's Office probe into criminal activity within Fifa which led to the arrest of seven senior officials in Zurich on Wednesday, with the Swiss Federal Office of Justice having carried out a swoop on a hotel housing Fifa's top brass ahead of Friday's Congress.



 

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Uefa & FA turn the heat up on Blatter over Fifa election

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May 27, 2015 11:55:00

Nine football officials were arrested in Zurich in the early hours of Wednesday morning, but the world football governing body says Friday's presidential election will go ahead

Both the Football Association and Uefa have turned up the pressure on Fifa after seven top officials were arrested in Zurich on Wednesday morning.

Numerous arrests were made in the early hours of Wednesday morning ahead of the 65th Fifa Congress, with Concacaf president Jeffrey Webb, Fifa executive committee member Eduardo Li and outgoing Fifa vice-president Eugenio Figueredo among those detained in Switzerland. A total of 14 people have been indicted.

Nevertheless, Fifa's head of communications and public affairs Walter De Gregorio refuted suggestions that president Sepp Blatter is trying to delay Friday's election and confirmed it would go ahead as planned.

FA chairman Greg Dyke, though, says the arrests are a "very serious" matter and ought to merit a discussion into whether or not the elections should still take place - though, if it is confirmed, reiterated the FA's support of Prince Ali.

"We should stress this morning's developments are very serious for Fifa and its current leadership," read a statement from Dyke on the FA's official website.

"As one of the associations who nominated Prince Ali it will not surprise you to learn that if the election for president goes ahead The FA will be voting for him. However, there must be a question mark over whether the election should take place in these circumstances.

"Clearly things are changing very quickly and our delegation to the Fifa congress in Zurich, which I am leading, will discuss the position and what we should do about it with our colleagues in Uefa when we meet tomorrow morning."

A statement from Uefa, meanwhile, read: "Uefa is astonished and saddened by the events which have taken place earlier today in Zurich and is now waiting for additional information.

"An informal meeting of the Uefa Executive Committee will take place this afternoon in Warsaw prior to the Uefa Europa League final to discuss the matter and further communication will be made in due course."

It is expected the governing body of European football will discuss whether to formally request that Fifa postpone the presedential elections.

Fourteen people in total were indicted by the US Department of Justice, with four sports marketing executives and one other man in the broadcast business detained alongside the nine football officials.


 

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FAI chief Delaney: Fifa scandal 'like something out of a mafia movie'


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May 27, 2015 12:11:00

The head of the Irish football governing body has reiterated his call for Sepp Blatter to step aside, describing Wednesday's arrests as both shocking and saddening

The chief executive of the Football Association of Ireland (FAI), John Delaney, says that the arrests of Fifa officials "seems like something out of a mafia movie" adding that the news is "shocking and very saddening".

Swiss police confirmed the arrest of seven top football officials in Zurich on Wednesday ahead of the 65th Fifa Congress, with Concacaf president Jeffrey Webb named among those under investigation.

Delaney, who called for Sepp Blatter to "step aside" on Tuesday, said that the FAI would not be voting for the incumbent to remain as president of Fifa in the elections on Friday.

"It seems like something out of a mafia movie," Delaney said, speaking on RTE Radio One. "Nothing would surprise me with Fifa, that's the sad thing about Fifa.

"When you wake up this morning and hear those events, it's shocking and very saddening.

"The awards of World Cups are always covert and then there are independent reports that we don't get to see. We're told we'd get redacted versions and we don't get those.

"There is always controversy around Fifa and its governance and the one person who has always been at the head of that is Sepp Blatter and he has to take some responsibility for that and that's why I said yesterday that we wouldn't be voting for him."



 

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Warner pleads innocence over Fifa scandal

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By Kris Voakes
May 27, 2015 14:21:00

The indicted former Fifa vice-president insists football politics no longer concerns him after his suspension and eventual resignation from the sport in 2011

Jack Warner insists he is innocent of all charges and claims football politics has nothing to do with him following his indictment by the United States Department of Justice (DoJ) on Wednesday.

The former Fifa vice-president was one of 14 people named by a DoJ release relating to racketeering, fraud, money laundering and corruption charges within football’s corridors of power over a 24-year period.

But Warner has responded strongly, claiming in a statement that he has done nothing wrong.

“The people of Trinidad and Tobago will know that I quit Fifa and international football more than four years ago and that over the past several years I have recommitted my life to the work of improving the lot of every citizen of every creed and race in this nation. This is where I have let my bucket down,” read the statement.

“I have fought fearlessly against all forms of injustice and corruption.

“I have been afforded no due process and I have not even been questioned in this matter. I reiterate that I am innocent of any charges.

"I have walked away from the politics of world football to immerse myself in the improvement of lives in this country where I shall, God willing, die.

“The actions of Fifa no longer concern me.”

The 72-year-old was suspended by Fifa’s Executive Committee in 2011 pending corruption allegations, but he later resigned from all football positions with Fifa presuming his innocence since he could no longer be investigated. He now stands for the Independent Liberal Party in his homeland of Trinidad and Tobago.

And in his statement he cited Friday’s presidential election as a potential reason for the timing of the latest Fifa scandal.

“I cannot help but note that these cross-border coordinated actions come at a time when Fifa is assembled for elections to select a president who is universally disliked by the international community,” he continued.

“At times such as this it is my experience that the large world powers typically take actions to affect world football. World football is an enormous international business.

“That is no longer my concern. My sole focus at this stage of my life is on the people of Trinidad and Tobago.”



 

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FIFA president Blatter welcomes investigations as corruption probe rocks world football


27 May 2015

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FIFA president Sepp Blatter has welcomed investigations launched into allegations of corruption in world football, following a day in which the governing body was thrown into crisis.

On Wednesday, 14 people - including nine FIFA officials - were indicted on charges of racketeering, conspiracy and corruption by Switzerland's Federal Office of Justice, following a request by United States authorities.

Seven of those charged were arrested in Zurich earlier in the day.

They were later named as FIFA vice-presidents Jeffrey Webb and Eugenio Figueredo, along with executive committee member Eduardo Li, development officer Julio Rocha, attache to the CONCACAF president Costas Takkas, CONMEBOL executive committee member Rafael Esquivel and FIFA organising committee member Jose Maria Marin.

Former FIFA vice-president Jack Warner and ex-executive committee member Nicolas Leoz complete the line-up of indicted FIFA officials.

The fallout to Wednesday's proceedings has been swift, and widespread, with UEFA calling for Friday's FIFA presidential elections to be postponed.

Blatter - who will seek re-election for a fifth term in that vote, and is not among those accused by the authorities of any wrongdoing - issued a statement vowing that FIFA would do everything in its power to root out corruption within the game.

He also confirmed that 11 individuals had already been provisionally banned from carrying out any football-related activity.

"This is a difficult time for football, the fans and for FIFA as an organisation," read the statement. "We understand the disappointment that many have expressed and I know that the events of today will impact the way in which many people view us.

"As unfortunate as these events are, it should be clear that we welcome the actions and the investigations by the US and Swiss authorities and believe that it will help to reinforce measures that FIFA has already taken to root out any wrongdoing in football.

"While there will be many who are frustrated with the pace of change, I would like to stress the actions that we have taken and will continue to take. In fact, today's action by the Swiss Office of the Attorney General was set in motion when we submitted a dossier to the Swiss authorities late last year.

"Let me be clear: such misconduct has no place in football and we will ensure that those who engage in it are put out of the game. Following the events of today, the independent Ethics Committee - which is in the midst of its own proceedings regarding the awarding of the 2018 and 2022 FIFA World Cups - took swift action to provisionally ban those individuals named by the authorities from any football-related activities at the national and international level.

"These actions are on top of similar steps that FIFA has taken over the past year to exclude any members who violate our own Code of Ethics.

"We will continue to work with the relevant authorities and we will work vigorously within FIFA in order to root out any misconduct, to regain your trust and ensure that football worldwide is free from wrongdoing."

FIFA PROBE - HOW THE DAY UNFOLDED:

- Early on Wednesday morning, FIFA officials and those from sub-organisations are arrested following a United States Department of Justice (USDoJ) request, with Swiss authorities confirming the charges relate to corruption allegations.

- A total of 14 people are indicted, including nine FIFA officials, seven of whom have been arrested.

- Those arrested are alleged to have solicited and received bribes totalling in excess of $100million between the early 1990s and the present day.

- FIFA presidential candidate Prince Ali bin Al Hussein calls it a "sad day for football" and demands drastic changes in the way the governing body is run.

- Swiss prosecutors open separate criminal proceedings against "persons unknown" in relation to alleged money laundering with regard to the 2018 and 2022 World Cups, with FIFA described as the "injured party".

- At a hastily arranged press conference, FIFA explain they are "very happy" with the arrests and for the investigations to take place, while confirming president Sepp Blatter and vice-president Jerome Valcke are not involved in the probe.

- Director of communications Walter de Gregorio adds that the hosting of the 2018 and 2022 World Cups will not be affected and that Friday's presidential elections will go ahead as planned.

- US Department of Justice (USDoJ) names the indicted FIFA officials, who include Jack Warner and CONCACAF president Jeffrey Webb.

- Ex FIFA vice-president Warner pleads his innocence, saying: "I reiterate that I am innocent of any charges. The actions of FIFA no longer concern me. I have been afforded no due process and I have not even been questioned in this matter."

- The "majority" of the football officials arrested on Wednesday contest extradition to the United States, it is announced, leaving Switzerland's Federal Office for Justice awaiting formal requests within 40 days before proceedings can be resumed.

- European football's governing body UEFA calls for Friday's elections to be postponed, and expresses concern that corruption is "deeply rooted in FIFA's culture".

- FIFA bans 11 individuals from carrying out any football-related activities, a move welcomed by Blatter.


 

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Hong Kong linked to Fifa bribery scandal through 'complex' money laundering schemes

City among centres where tens of millions of US dollars was allegedly laundered as world game of soccer is rocked by the arrests of top officials

PUBLISHED : Thursday, 28 May, 2015, 1:22am
UPDATED : Thursday, 28 May, 2015, 4:17am

Staff Reporters and Agencies in Zurich

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Fifa spokesman Walter De Gregorio takes questions. Photo: EPA

Hong Kong was on Wednesday night named as one of the focuses of "complex" money laundering schemes involving tens of millions of US dollars that is at the heart of a corruption scandal rocking the "world game" of soccer.

On a day of sensational allegations against soccer's world governing body Fifa, seven top officials were arrested and other leading names were charged over allegations described as the "World Cup of fraud".

Both US and Swiss authorities announced separate inquiries into the activities of Fifa, accusing soccer officials of using various schemes to enrich themselves over the past 24 years.

Prosecutors say they had discovered a dozen schemes, including one involving the awarding of the 2010 World Cup to South Africa and another involving the 2011 Fifa presidential election.

Swiss authorities also opened criminal proceedings over the awarding of the 2018 and 2022 World Cups.

Richard Weber, chief of criminal investigation for the US tax office, cited Hong Kong, the Cayman Islands and Switzerland as the focus of "complex" money laundering schemes that shifted at least US$151 million of untaxed income through hidden offshore accounts.

According to US court documents, one of the arrested men - Fifa official Costas Takkas - funnelled US$1.2 million to a HSBC account in Hong Kong. Another US$750,000 was sent to a Standard Chartered account in the United States, while sums of US$250,000 were sent via both banks from Hong Kong to the United States.

Takkas is the current attache to the Concacaf, the federation that governs the game in North America, Central America and the Caribbean.

"To date US$151 million has been identified," Weber said. "[The US tax office] has exposed complex money laundering schemes, uncovered millions of dollars in untaxed income and discovered tens of millions of dollars hidden away in offshore accounts such as Hong Kong, the Cayman Islands and Switzerland," he said.

"This really is the World Cup of fraud and today we are issuing Fifa with a red card."

US Attorney General Loretta Lynch said the arrested officials had corrupted the international game. "They corrupted the business of worldwide soccer to serve their interests and to enrich themselves," Lynch said.

"Beginning in 1991, two generations of soccer officials," Lynch said, "used their positions of trust within their respective organisations to solicit bribes from sports marketers in exchange for the commercial rights to their soccer tournaments.

"They did this over and over, year after year, tournament after tournament."

Citing an example, Lynch said that in preparation for the 2016 Copa American being held in the United States for the first time, US$110 million in bribes were paid.

"Our investigation revealed that what should be an expression of international sportsmanship was used as a vehicle in a broader scheme to line executives' pockets," Lynch said.

She spoke after Swiss authorities acting on the US indictments detained seven Fifa leaders in a dawn raid in Zurich, where the soccer governing body was tomorrow expected to re-elect its president Sepp Blatter. The Swiss-born Blatter was not named in either investigation.

In all, nine soccer officials and five sports media and promotions executives have so far been charged.

Among those charged was former Fifa vice-president Jack Warner, who is alleged to have solicited US$10 million in bribes from the South African government to host the 2010 World Cup.

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A police van drives past the Baur au Lac hotel in Zurich, where six of the seven Fifa officials were arrested in a dawn raid. Photo: Reuters

The seven officials arrested in Zurich are Fifa vice-presidents Jeffrey Webb and Eugenio Figueredo, Eduardo Li, Julio Rocha, Takkas, Rafael Esquivel and Jose Maria Marin.

US authorities said four men and two sports marketing companies had already pleaded guilty. They are believed to be cooperating with the investigation.

Among them was Chuck Blazer - who for nearly two decades was the most senior American official at Fifa - who officials said had pocketed millions of dollars in marketing commissions and avoided paying tax.

Guilty pleas were also given by Daryan Warner and Daryll Warner - sons of Jack Warner - and Jose Hawilla, the owner of the Brazil-based sports marketing firm Traffic Group. The two companies to enter guilty pleas are owned by Hawilla.

US officials say he has agreed to forfeit more than US$151 million.

The US Department of Justice said the Miami headquarters of Concacaf were being searched.

Fifa spokesman Walter De Gregorio said the arrests were a "difficult moment" but tomorrow's election would still be held and the World Cups would go ahead.

Reporting by Associated Press, Reuters, The Washington Post, Agence France-Presse



 

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Blatter: Fifa must clean up corruption after 'unfortunate' arrests

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By Miles Chambers
May 27, 2015 19:18:00

The Swiss has backed calls for reform after a day in which seven members of his organisation were accused of taking bribes over a 24-year period

Fifa president Sepp Blatter has branded Wednesday's corruption arrests as "unfortunate" and reiterated the governing body's intention of cleaning up its act.

Seven Fifa officials were arrested amid 14 indictments by the US Federal Office of Justice in cooperation with Swiss police ahead of the 65th Fifa Congress, dominating headlines across the world.

Uefa has called for Blatter to stand down due to Fifa "killing football", despite insistences from the sport's governing body that the president should not be held responsible from the allegedly corrupt actions of dozens of his colleagues.

"This is a difficult time for football, the fans and for Fifa as an organisation," Blatter stated on Fifa's website. "We understand the disappointment that many have expressed and I know that the events of today will impact the way in which many people view us.

"As unfortunate as these events are, it should be clear that we welcome the actions and the investigations by the US and Swiss authorities and believe that it will help to reinforce measures that Fifa has already taken to root out any wrongdoing in football.

"While there will be many who are frustrated with the pace of change, I would like to stress the actions that we have taken and will continue to take. In fact, today’s action by the Swiss Office of the Attorney General was set in motion when we submitted a dossier to the Swiss authorities late last year.

"Let me be clear: such misconduct has no place in football and we will ensure that those who engage in it are put out of the game. Following the events of today, the independent Ethics Committee – which is in the midst of its own proceedings regarding the awarding of the 2018 and 2022 Fifa World Cups - took swift action to provisionally ban those individuals named by the authorities from any football-related activities at the national and international level.

"These actions are on top of similar steps that Fifa has taken over the past year to exclude any members who violate our own Code of Ethics.

"We will continue to work with the relevant authorities and we will work vigorously within Fifa in order to root out any misconduct, to regain your trust and ensure that football worldwide is free from wrongdoing."


 

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Dyke: This should be the end for Blatter

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May 28, 2015 00:34:00

The Football Association chairman hopes the indictment of 14 Fifa officials on allegations of corruption within football's world governing body will bring change

Football Association (FA) chairman Greg Dyke says the latest allegations of corruption against Fifa officials should see president Sepp Blatter resign.

A total of 14 officials have been indicted - seven of which were arrested - on Wednesday morning in police raids in Switzerland, on allegations of racketeering, fraud and money laundering.

Dyke, who has been vocal against Blatter for some time, feels Friday's Fifa presidential election is of no concern as the Swiss - who has not been arrested - should resign from his role.

He told ITV News: "Sepp Blatter has said in a statement tonight [Wednesday evening] that now was the time to start rebuilding the trust in Fifa.

"The truth is you cannot rebuild trust in Fifa while Sepp Blatter is there. It should be the end for Sepp Blatter. A lot of us hope it will be the end of Sepp Blatter.

"Personally I think the elections should be postponed, but I don't think it matters if they go on or not.

"What has to be said to Blatter over the next two days is 'it's time for you to go - we don't care if you've got the votes, you have got to go as there is no credibility in this organisation while you're still there.'"


 

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Blatter snubs Fifa Medical Conference as Visa threaten to review partnership


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May 28, 2015 09:44:00

The under-fire president cancelled his planned appearance in Zurich as one of the governing body's major official partners expressed their "profound" concern

Beleaguered Fifa president Sepp Blatter cancelled his planned appearance at the Fifa Medical Conference on Thursday as calls for his resignation grow.

Blatter has remained steadfast following the arrests of several Fifa officials, labelling the incident "unfortunate" and vowing to "work vigorously within Fifa in order to root out any misconduct".

Thursday's speech in Zurich would have presented the first opportunity for the world's press to quiz the 79-year-old since Wednesday's arrests.

"President Blatter apologises for not being able to come today because of the turbulence you have probably followed in the media," said Fifa's chief medical officer Jiri Dvorak.

"He said he has to fulfil his duties in the management of the situation which is probably more important than to come to us, so he sends his sincere apologies."

Blatter and Fifa were handed a further blow as major sponsors Visa expressed their concern at the indictments of 18 people with alleged bribes totalling more than $150 million.

"Our disappointment and concern with Fifa in light of today’s developments is profound. As a sponsor, we expect Fifa to take swift and immediate steps to address these issues within its organisation," read an official VISA statement.

"This starts with rebuilding a culture with strong ethical practices. Should Fifa fail to do so, we have informed them that we will reassess our sponsorship."

Visa became an official Fifa partner in 2007 and their current deal is set to run through World Cup 2022.

Fifa's other major sponsors, Adidas, Coca-Cola, McDonald's, Budweiser, Hyundai and Gazprom, have all expressed similar sentiments in the wake of Wednesday's events.

English Football Association (FA) chairman Greg Dyke has added his name to a growing list calling for Blatter's resignation.

In addition to the 14 people indicted on Wednesday, five parties, including Warner's sons Daryll and Daryan and former Concacaf general secretary Chuck Blazer, had already pleaded guilty to fraudulent activities.

Blatter is due to stand against Prince Ali bin al-Hussein on Friday, but Uefa called for the presidential elections to be postponed.



 

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Nike 'cooperating with authorities' following Fifa arrests

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May 28, 2015 10:18:06

Although not specifically named by US investigators as part of a probe footballing officials, the US sportswear giant have released a statement

Nike have issued a statement saying they are "cooperating" with authorities in the wake of the arrests of several Fifa officials.

On Wednesday, 14 people - including nine Fifa dignitaries - were indicted on charges of racketeering, conspiracy and corruption by Switzerland's Federal Office of Justice, following a request by United States authorities.

Seven of those charged were arrested in Zurich earlier in the day.

The US Justice Department’s 161-page indictment included allegations of bribery involving attempts by "a multinational sportswear company headquartered in the United States" to win an apparel licensing deal with Brazil's national soccer team.

Nike, whose name did not appear anywhere in the report and have not confirmed they were manufacturer to which the allegations referred, have issued a response to the media.

"Like fans everywhere we care passionately about the game and are concerned by the very serious allegations," Nike's statement read. "Nike believes in ethical and fair play in both business and sport and strongly opposes any form of manipulation or bribery. We have been cooperating, and will continue to cooperate, with the authorities."

Ranked number 15 on Fortune's 2015 list of the World's Most Admired Companies, Nike's worldwide brand is valued at an estimated $15billion, according to Forbes.

It competes with official World Cup sponsor adidas to be international football's top brand and has a long standing manufacturing deal with the Brazilian national team.

Earlier on Wednesday, adidas had been quick to issue a release that stopped short of criticising football's governing body but did "encourage Fifa to continue to establish and follow transparent compliance standards in everything they do".


 

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AFC pledges continued support to Blatter


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By Dejan Kalinic
May 28, 2015 11:39:50

Asian football's organising body says it will stand by the Fifa president in the wake of Wednesday's arrests and hopes Friday's election goes ahead as planned

The Asian Football Confederation (AFC) has reiterated its support for Fifa president Sepp Blatter, despite the latest scandal that has rocked the sport's governing body to its core.

Nine Fifa officials and five corporate executives were indicted for racketeering, conspiracy and corruption on Wednesday, though Blatter was not among those charged and is expected to be re-elected as president on Friday.

The AFC says it will continue to support Blatter and added that it wants to see the presidential elections to go ahead as planned after Uefa had called for the vote to be postponed.

"The Asian Football Confederation expresses its disappointment and sadness at Wednesday's events in Zurich whilst opposing any delay in the Fifa presidential elections to take place on Friday May 29 in Zurich," the AFC said in a statement on Thursday.

"The AFC is against any form of corruption in football and fully supports any actions taken by the independent Fifa Ethics Committee where wrongdoing may have occurred, whether such actions affect Asian officials or otherwise.

"The AFC is still undergoing its own process of reform and has taken many concrete steps in the last two years to improve governance in the Confederation, whilst recognising that there is still much work to do.

"Furthermore, the AFC reiterates its decision taken at the AFC Congress in Sao Paulo in 2014, endorsed at subsequent Congresses in Melbourne and Manama in 2015, to support Fifa president Joseph S. Blatter."

Blatter released a statement on Wednesday in which he labelled this week's events as "unfortunate" before skipping Thursday's Fifa Medical Conference at which he would have faced the world's press for the first time since the raid at the Baur au Lac Hotel in Zurich.


 

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Platini: I asked Blatter to stand down as Fifa president

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By Mark Doyle
May 28, 2015 14:35:50

The Uefa president has urged his organisation's 54 members to vote against the Swiss due to the latest corruption scandal to hit the governing body

A tearful Michel Platini has revealed that he begged Sepp Blatter to stand down as Fifa president.

The game's governing body is reeling after the arrest of several officials on Wednesday as part of an FBI-led investigation into corruption and money-laundering dating back to 1991.

Blatter has not been implicated in the enquiry but there have been widespread calls for the Swiss to resign given that it has been alleged by the US Justice Department that corruption was widespread within Fifa.

However, the Swiss is expected to be re-elected for a fifth four-year term at Friday's presidential elections - despite growing support for Prince Ali bin al-Hussein of Jordan.

Indeed, Uefa president Platini admitted that he tried to persuade all 54 of his organisation's members to vote against Blatter after the 79-year-old ignored his plea to walk away for the good of the game.

The former France international told reporters on Thursday: "I told him, ‘Sepp, I’d like to speak to you man to man, face to face.’ He said, ‘It’s too late. I can’t all of a sudden leave when congress starts this afternoon.'

"I told Sepp Blatter to leave, to step down, because he is giving Fifa a terrible image.

"It’s not easy to tell a friend that he must leave but that is the way history is going.

"I’m saying this with sadness, with tears in my eyes. There have been too many scandals."

Ask whether he believed that Blatter would have quit his post had he been requested to do so earlier, Platini replied: "Yes. Yes, yes. I believe so, but I couldn’t have asked him a few weeks ago because what happened happened yesterday."

As well as the arrest of Fifa officials by US authorities on Wednesday, Swiss officials also seized electronic data from Fifa premises as part of a separate investigation into allegations of corruption relating to the award of the 2018 and 2022 World Cups to Russia and Qatar, respectively.

Platini admitted that European countries could choose to boycott the tournaments depending on the findings of the enquiry: "Uefa remains open to all options...

"Sometimes I have stomach troubles and that relates to Fifa problems.

"Honestly, myself as a lover of Fifa, I’m a great admirer of its history, I really don’t know where to put myself.

"I have had enough. Enough is enough. Too much is too much.

"Today we had a meeting of the 54 members. Tomorrow [Friday], when it comes to the election of the presidency, a very big majority of European national associations will vote Prince Ali.

"People don’t want [Blatter] anymore and I don’t want him anymore either.

"I have always said they want Fifa to be strong and Fifa is no longer strong.

"I am still trying to convince some [European football associations] who are not totally convinced."

However, Platini admitted that all of Uefa's representatives on the Fifa executive committee partake in a boycott if Blatter is re-elected.

The Juventus icon added, though, that he now believes for the first time that Blatter's 27-year reign at the head of the global game could be about to come to an end.

"Before what happened yesterday [Wednesday], I would have thought not," Platini added. "But enough is enough. People have really had enough.

"I think there will be a lot of changes but we’re going to continue working this evening.

"Prince Ali is young, he’s ambitious and that’s why I support him. He can do some good, he doesn’t need money.

"Things are a bit complicated in his region because he doesn’t have the support of his region but he’s a man that can do a lot of good."


 

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Blatter: I can't monitor everyone all of the time


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By Mark Doyle
May 28, 2015 16:58:17

The Swiss says he cannot be held accountable for the "actions of a few" and is vowing to bring about radical reform

Fifa president Sepp Blatter has refused to accept any blame for the corruption scandal that has rocked the game's governing body, claiming that he cannot "monitor everyone all of the time".

The Swiss has faced widespread calls to resign from his post after the arrest of several Fifa officials on Wednesday as part of an FBI-led investigation into bribery and money laundering over a 24-year period dating back to 1991.

Uefa president Michel Platini urged his "friend" to walk away from the most important position in football for the good of the game, but the Swiss says that he remains the best man for the job and is confident that he can restore Fifa's reputation if he defeats sole rival Prince Ali bin al-Hussein of Jordan in Friday's presidential election.

“These are unprecedented and difficult times for Fifa," Blatter said. "The events of yesterday have cast a long shadow over football and over this week’s congress.

"Actions of individuals, if proven, bring shame and humiliation on football and demand action and change from us all.

"We cannot allow the reputation of Fifa to be dragged through the m&d any longer.

"I must stress that those who are corrupt in football are in a minority, as in society. But as in society they must be caught.

"The next few months will not be easy for Fifa. I’m sure more bad news may follow.

"But it is necessary to begin to restore trust in our organisation. Let this be the turning point.

"Tomorrow the congress has the opportunity to begin on the long and difficult road to rebuilding trust.

"We must earn it back through the decisions we make, the expectations we place on each other and the way we behave individually.

"I will not allow the actions of a few to destroy the actions of those who work so hard for football.

"We will co-operate with all authorities to make sure all involved in wrongdoing are discovered and punished.

"Many people hold me responsible... I can’t monitor everyone all of the time."

As well as the arrest of several Fifa officials, Swiss authorities are pursuing an investigation into allegations of corruption relating to Fifa's decision to award the 2018 and 2022 World Cups to Russia and Qatar, respectively.


 

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Concacaf provisionally dismisses Webb and Li over Fifa corruption scandal

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May 28, 2015 18:37:50

Both men were among the eight officials arrested as part of a US-led investigation into alleged corruption with football's governing body

Jeffrey Webb has been removed from his position as president of the Confederation of North, Central America and the Caribbean Football Association (Concacaf).

A statement on Thursday announced that Fifa vice president Webb had been "provisionally dismissed", along with fellow official Eduardo Li, in the wake of the corruption scandal surrounding the game's governing body.

On Wednesday, Webb and Li were named as two of eight Fifa officials arrested amid allegations of racketeering, conspiracy and corruption.

Previous Concacaf vice-president Alfredo Hawit has been named as president in Webb's stead.

Hawit said: "While we are profoundly disappointed by the allegations made by authorities that again, Concacaf has been the victim of fraud, we remain committed to Concacaf's goal to develop, promote and manage the game of soccer.

"We have now taken the appropriate steps to maintain our operations and continue to deliver on our commitments to all of our constituents, including our fans, members, as well as commercial and broadcast partners.

"We also continue to cooperate with the ongoing investigation by governmental authorities, which have not placed any restrictions on our ongoing activities."


 

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'Voting against Blatter is blasphemy'

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By Alec Fenn
May 28, 2015 20:40:36

Guinea-Bissau's president says Africa remains behind the Fifa chief despite the corruption scandal surrounding the organisation

Voting against Fifa president Sepp Blatter in Friday's election would be "blasphemy", according to the Guinea-Bissau FA chief.

On Wednesday, 14 football figures were indicted over corruption allegations with seven Fifa executives arrested for bribery and racketeering charges by US authorities.

A separate investigation saw the Swiss government open criminal proceedings into the bidding process for the 2018 and 2022 World Cups.

The news prompted Uefa boss Michel Platini to call for Blatter to resign from his position, but one of Africa's football association presidents Nascimento Lopes believes the Swiss is being unfairly targeted.

"I'm a Christian and this is blasphemy," he told Insideworldfootball.

"It's a state conspiracy. People are always trying to knock Blatter. Africa will vote for Mr Blatter and Blatter will win and I will follow that.

"I agree at some point there has to be change but let Blatter finish his mandate and see what he does. It's not all about the major European football countries.

"If you point three fingers at someone, there's is always one you point at yourself. Tomorrow we are going to vote for Blatter. How do we know anyone else would be any better?"

US federal authorities have presented a 47-point indictment against current and past Fifa officials, which includes claims South Africa won the bidding for World Cup 2010 after millions of pounds exchanged hands.

However, Lopes countered: "Let America show us the proof. Let the investigation bring the result. People say Blatter must have known about this but do I know other people's secrets?"


 

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US - 1, Fifa - 0: why American law enforcers are so keen to fight global corruption


The investigation of world soccer's governing body highlights the determination of America to fight corruption beyond its own borders

PUBLISHED : Friday, 29 May, 2015, 5:40am
UPDATED : Friday, 29 May, 2015, 8:39am

Lana Lam and Agencies

With US$150 million in alleged kickbacks at the centre of one of the biggest scandals to hit the soccer world, many are wondering why the United States - where the sport is more often relegated to the sidelines - is leading the corruption investigation of the game's governing body.

As more details emerge about the FBI's explosive case against 14 Fifa officials and corporate executives, the long and powerful arm of the US authorities is being felt by one of the world's most powerful sporting bodies.

And just because most sports fans in the US would prefer watching a touchdown in American football than a goal on the soccer pitch, the decades-long allegedly corrupt activities of Fifa officials have not gone unnoticed by US law enforcement agencies.

"If you touch our shores with your corrupt enterprise - whether that is through meetings or through using our world-class financial system - you will be held accountable for that corruption," FBI director James Comey said shortly after the Fifa officials were arrested at an expensive hotel in Zurich, Switzerland, on Wednesday.

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US federal law grants law enforcement agencies broad authority to pursue criminal investigations as long as there is some connection to the United States, even a tangential one such as the involvement of a bank, internet service provider or mobile phone company.

And whether they are targeting Olympic corruption or doping scandals like the Lance Armstrong case, US justice authorities rarely miss an opportunity to shine a light into the darkest corners of the sports world.

The full beam of US justice is now illuminating financial skullduggery in world soccer after charges were filed against the 14 people in New York on Wednesday.

"It all comes down to a connection to the United States," said Jessica Tillipman, assistant dean and lecturer at the George Washington University Law School.

"It can be minimal - we've seen instances of jurisdiction alleged where an email has passed through a US server even though it was an email between two foreign individuals using two foreign email accounts.

"It depends again on the particular statute, but if there is a touch point in the United States, then the US has not hesitated to assert jurisdiction."

The 47-count indictment unveiled by US Attorney General Loretta Lynch outlined racketeering, wire fraud and money laundering conspiracies that span 24 years beginning in 1991.

"The defendants relied heavily on the United States financial system in connection with their activities," the indictment said.

Lynch said the suspects had "abused the US financial system and violated US law, and we intend to hold them accountable".

More than a dozen banks - including HSBC in Hong Kong and Standard Chartered in the US - were named in the indictment of nine officials at Fifa and five sports media and promotion executives.

Those banks could face tough questions in the US crackdown on alleged corruption in global soccer as prosecutors review how much they knew about millions of dollars in bribes flowing through the US banking system to accounts around the world.

"Part of our investigation will look at the conduct of the financial institutions to see whether they were cognisant of the fact they were helping launder these bribe payments," Kelly Currie, acting US Attorney for the Eastern District of New York, said on Wednesday.

"It's too early to say if there is any problematic behaviour, but it will be part of our investigation."

Prosecutors have also noted that one entity at the heart of the case is headquartered in Miami - the offices of Concacaf, the soccer federation under Fifa that governs the game in North and Central America and the Caribbean.

A recent study by international law firm Freshfields Bruckhaus Deringer found that US regulators were increasingly pursuing overseas companies under the Foreign Corrupt Practices Act (FCPA), with companies in Asia being a major target.

At least 115 pending FCPA investigations were under way in Asia, more than twice as many as any other region, according to the study published last month. Africa had at least 44 FCPA investigations, while the European Union faced only 19.

Peter Gallo, a veteran money laundering investigator who was based in Hong Kong for 19 years and most recently worked for the United Nations' internal affairs bureau, said few people would be surprised to see the word "corruption" in a headline about Fifa.

"The organisation has had a reputation as being tainted by corruption for as long as I can remember, so any financial accounts connected to senior Fifa officials should have been flagged as higher risk from the outset," he said from New York.

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Bryane Michael

Bryane Michael, a senior fellow at the University of Hong Kong's Asian Institute of International Financial Law and an expert on corruption, said the US government's leadership in investigating and prosecuting graft harked back to the administration of president Richard Nixon.

"The Watergate scandal involved bribery abroad paying for corruption at home," Michael said, referring to the political scandal that led to the resignation of Nixon and involved abuse of power, bribery and obstruction of justice.

"As such, the US has taken a very proactive stance on fighting corruption beyond its borders - on the theory that by fighting corruption abroad, it is fighting it at home."

Michael, who has designed and drafted legislation to help governments tackle graft, said corruption involving Fifa had been well-documented by academics for at least a decade.

"So, in some ways, this scandal involves some much-needed 'house-cleaning'," he told the South China Morning Post.

"This scandal is in no way the largest FCPA enforcement action. It's just another in a long chain."

But the high profile of the soccer body means this case will be unlike others.

"It might be more visible as most of the cases involve settlements before the case even reaches the newspapers and courts," Michael said.

"The US launches numerous investigations of corruption beyond its borders, and usually when people pay bribes now, they fear the US far more than their own local police".

The US consulate in Hong Kong declined to comment on the Fifa investigation.

Agence France-Presse, Reuters


 
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