ONLY FIRST SEPP
Woes don’t end with resignation
Days after standing before the world press and lecturing reporters about why he was the man needed to clean up FIFA, Sepp Blatter announced that he was resigning as president of world soccer’s governing body because it needed “profound restructuring.” Talk about being hoisted upon your own petard!
Unfortunately for Mr. Blatter, I think it is too little too late and I wouldn’t be surprised if el Presidente himself is added to the indictment unsealed last week in the Eastern District of New York.
Since Blatter was elected for a fifth term a few days ago, he presumably found some time to read the indictment that was the result of a joint FBI/IRS investigation and named several of his former close associates as defendants. He also likely read news reports about defendants cooperating with the government and his second-incommand allegedly authorizing a $10 million wire transfer that is noted in the indictment. Worse, the second-in-command publicly commented that he wasn’t authorized to make the transfer, which could be interpreted to mean his boss, i.e., Blatter himself authorized the transfer.
At this point Blatter has not been charged with any crime, and so the question becomes why resign now, days after being elected to a fifth term?
I think many people who watched Blatter’s weekend press conference would agree that he didn’t resign because he is a nice guy trying to save FIFA. My guess is that his Swiss and New York lawyers have laid out the consequences of the U.S. federal criminal investigation and may have urged Blatter to focus on the potential legal problems he may face in the very near future.
It appears that Blatter and a lot of other highranking FIFA officials grew accustomed to incredible power as heads of state bent to their whims and monetary demands.
I have witnessed heads of major corporations develop a sense of invincibility as they became accustomed to rubbing elbows with presidents and powerful politicians.
Generally, when someone like that becomes aware of a federal investigation, the person refuses to believe the government would dare to go after them because of who they are; it isn’t until their first day in jail that they ask, “How did this happen to me?”
Then there is the guy who understands that trouble is coming and says, “Let me get before the prosecutors as soon as I can to minimize the damage and show them I am not a really bad guy.”
Criminal defense lawyers who practice in federal courts are often surprised that the general public is so unaware of how much power and how many resources federal prosecutors have in their arsenal.
The conviction rate in federal court is well above 90%, and so the odds of anyone prevailing in a federal case are not great.
To make things even more difficult for defendants, especially in high-profile federal investigations, the FBI/IRS agents don’t stop after an indictment is filed, and they often will find other crimes unrelated to the original investigation.
Indeed, I have a friend who was targeted by the FBI and thereafter became a guest of the federal government for a number of years. We were discussing a case that had been in the news in which a defendant was clearly being targeted by the government. I questioned whether the defendant should take the case to trial. My friend’s response: “Our government takes over countries. How is anyone, and I mean anyone, going to come out on top if you are targeted? The smart money takes a deal and fights another day.”
No one ever said the guys at FIFA were stupid. Corrupt maybe, but not stupid. Thus, my guess is that we will see a number of pleas in the next month and, hopefully, the beginning of true reform.