{"id":42837,"date":"2021-05-27T21:44:15","date_gmt":"2021-05-28T04:44:15","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=42837"},"modified":"2021-05-27T21:44:15","modified_gmt":"2021-05-28T04:44:15","slug":"bank-julius-baer-agrees-to-pay-more-than-79-million-for-money-laundering","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=42837","title":{"rendered":"Bank Julius Baer Agrees to Pay More Than $79 Million for Money Laundering"},"content":{"rendered":"<p id=\"node-title\" style=\"text-align: center;\"><span style=\"font-size: 20px;\"><strong>BROOKLYN, NEW YORK<\/strong><\/span><\/p>\n<div class=\"field field--name-field-pr-body field--type-text-long field--label-hidden\">\n<div class=\"field__items\">\n<div class=\"field__item even\">\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">Bank Julius Baer &amp; Co. Ltd. (BJB or the Bank), a Swiss bank with international operations, admitted Thursday in federal court in Brooklyn that it conspired to launder over $36 million in bribes, according to officials.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\"><a href=\"https:\/\/cjnotebook.com\/brothers-convicted-1994-drug-related-murder-rival\/brooklyn-federal-court\/\" rel=\"attachment wp-att-7364\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright  wp-image-7364\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/11\/BROOKLYN-FEDERAL-COURT-300x168.jpg\" alt=\"\" width=\"380\" height=\"213\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/11\/BROOKLYN-FEDERAL-COURT-300x168.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/11\/BROOKLYN-FEDERAL-COURT.jpg 640w\" sizes=\"auto, (max-width: 380px) 100vw, 380px\" \/><\/a>The bribes were made through the United States to soccer officials with the F\u00e9d\u00e9ration Internationale de Football Association (FIFA) and other soccer federations, in furtherance of a scheme in which sports marketing companies bribed soccer officials in exchange for broadcasting rights to soccer matches, officials stated.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">The proceeding was held before U.S. District Judge Pamela K. Chen.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\"> <a href=\"https:\/\/cjnotebook.com\/bank-julius-baer-agrees-to-pay-more-than-79-million-for-money-laundering\/download-19-4\/\" rel=\"attachment wp-att-42840\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-42840 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2021\/05\/download-19-1.jpg\" alt=\"\" width=\"300\" height=\"168\" \/><\/a>The Bank made these admissions and entered into a three-year deferred prosecution agreement with the department in connection with a criminal information filed Thursday in the Eastern District of New York charging the Bank with conspiring to commit money laundering. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">As part of this agreement, the Bank has agreed to pay more than $79 million in penalties (including a fine of $43,320,000 and forfeiture of $36,368,400) to resolve the investigation into its involvement in a money-laundering conspiracy that fueled this international soccer bribery scheme.\u00a0<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\"><a href=\"https:\/\/cjnotebook.com\/former-marketing-owner-admits-to-stealing-1-1-million-earmarked-for-political-campaigns-news-video\/courtroom\/\" rel=\"attachment wp-att-14523\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-14523\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/08\/Courtroom-300x160.jpg\" alt=\"\" width=\"300\" height=\"160\" \/><\/a>Jorge Luis Arzuaga, a former BJB relationship manager who worked in the Bank\u2019s Montevideo, Uruguay, and Zurich, Switzerland, offices pleaded guilty in June 2017 for his role in this conspiracy and was sentenced in November 2020. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">That case was assigned to U.S. District Judge Pamela K. Chen of the Eastern District of New York, as is this case.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u201cToday\u2019s resolution sends a strong message to all banks and other financial institutions that if they knowingly misuse our financial system to hide their clients\u2019 criminal proceeds or to promote a corrupt scheme, they will be held to account,\u201d said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department\u2019s Criminal Division. \u201cFrom the time of the first FIFA-related indictment, the department has promised to hold accountable the financial institutions involved in this global criminal scheme. We are delivering on that promise.\u201d<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u201cBank Julius Baer pursued the profit it could make laundering corrupt funds derived from a criminal scheme run by powerful FIFA officials,\u201d said Assistant Director-in-Charge William F. Sweeney Jr. of the FBI\u2019s New York Field Office.\u00a0\u201cTheir behavior has earned them the equivalent of a red card, and the money the bank now owes the U.S. government is more than double what it admits to laundering. The FBI operates globally with our international partners, and our message to those who may be looking to profit from similar schemes \u2013 the penalties for this type of play are steep. Stay within the rules.\u201d<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u201cBank Julius Baer aided corrupt FIFA officials in laundering over $36 million,\u201d said Special Agent in Charge Ryan L. Korner of the IRS-Criminal Investigation. \u201cBanking officials that are a conduit for criminal activity undermine their own profession and the health of our financial system. The Bank&#8217;s admissions show that IRS-Criminal Investigation will relentlessly pursue corruption across borders, including financial institutions that facilitate or conceal criminal activity. This should put other banks on notice that aiding in corruption will cost you millions.\u201d<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">According to admissions in the publicly-filed statement of facts, from approximately February 2013 to May 2015, BJB, through Arzuaga, conspired with sports marketing executives \u2014 including Alejandro Burzaco, the controlling executive of Torneos y Competencias S.A. (Torneos), a sports media and marketing company headquartered in Argentina \u2014 to launder through the United States at least $36 million in bribes to soccer officials in exchange for broadcasting rights to soccer matches. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">BJB conspired to execute these illegal transactions through accounts at the Bank to conceal the true nature of the payments and promote the fraud. Burzaco pleaded guilty to racketeering conspiracy and other offenses in November 2015 in connection with his involvement in paying bribes to soccer officials.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">For example, Burzaco and co-conspirators agreed to pay approximately $30 million to the senior vice president of FIFA, who was also the president of the Asociaci\u00f3n del F\u00fatbol Argentina, for his support in the award of regional broadcasting rights to the 2018, 2022, 2026 and 2030 editions of the World Cup. As part of the conspiracy, BJB, through Arzuaga, transferred approximately $25 million of this money into a sub-account at the Bank and held it there for this senior FIFA official.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">Torneos and its co-conspirators also agreed to pay tens of millions of dollars in bribes to several officials of the Confederaci\u00f3n Sudamericana de F\u00fatbol (CONMEBOL) \u2014 all of whom were also FIFA officials \u2014 for the rights to the Copa Am\u00e9rica tournament (including the 2015, 2019 and 2023 editions of the tournament and the 2016 Copa Am\u00e9rica Centenario, a commemorative centennial edition of the tournament played at stadiums across the United States). <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">The officials who were to receive bribes included, among others, Eugenio Figueredo, a member of FIFA\u2019s executive committee and former president of both CONMEBOL and the Asociaci\u00f3n Uruguaya de F\u00fatbol, the Uruguayan soccer federation; Marco Polo Del Nero, another member of FIFA\u2019s executive committee and a former president of the Confedera\u00e7\u00e3o Brasileira de Futebol (CBF), the Brazilian soccer federation; and Jos\u00e9 Maria Marin, a member of multiple FIFA standing committees and another former president of the CBF.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">Burzaco and Torneos also paid bribes through BJB to numerous CONMEBOL officials in furtherance of a scheme to obtain the broadcasting rights to the Copa Libertadores tournament. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">In addition to the aforementioned soccer officials, bribes were also paid to, among others, Juan \u00c1ngel Napout, who served as a FIFA Vice President, a member of FIFA\u2019s Executive Committee, and president of CONMEBOL and Romer Osuna, a member of the FIFA audit and compliance committee and former treasurer of CONMEBOL.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">At the time of the conduct, BJB\u2019s Anti-Money Laundering (AML) controls failed to detect or prevent money laundering transactions related to the bribery schemes. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">Had Arzuaga\u2019s supervisors or compliance personnel meaningfully reviewed Arzuaga\u2019s due diligence on Torneos and his responses to transaction alerts, they would have known there were multiple, significant red flags, including facially false contracts, payments to third parties at the direction of a FIFA official, and services purportedly rendered by shell corporations \u2014 all of which would have alerted the Bank to the bribery, money laundering or other illegal activity. \u00a0<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">According to BJB\u2019s admissions, the Bank knew that Arzuaga\u2019s clients\u2019 accounts were associated with international soccer, which was generally understood to involve high corruption risks. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">Nevertheless, a BJB executive directed the opening of these accounts be fast-tracked in the hope that these clients would provide lucrative business.\u00a0<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">As outlined in the deferred prosecution agreement, the department reached this resolution with BJB based on a number of factors, including BJB\u2019s failure to voluntarily disclose the conduct to the department; the nature and seriousness of the conduct including that the Bank played an essential role in this scheme for over two years; and the bank\u2019s prior criminal history. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">BJB did not receive any cooperation credit because it made misleading representations about relevant facts in the case, which had the effect of hindering the department\u2019s investigation, and it did not come forward with all evidence pertaining to the involvement of senior management. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">However, the Bank received some credit for its significant effort to remediate its compliance program. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">Accordingly, the total criminal penalty reflects a five percent reduction off the bottom of the applicable U.S. Sentencing Guidelines fine range.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">The agreement announced today is part of an investigation led by the FBI\u2019s New York Field Office and the IRS-Criminal Investigation\u2019s Los Angeles Field Office.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>BROOKLYN, NEW YORK Bank Julius Baer &amp; Co. Ltd. (BJB or the Bank), a Swiss bank with international operations, admitted Thursday in federal court in Brooklyn that it conspired to launder over&#8230;<\/p>\n","protected":false},"author":1,"featured_media":42838,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3258],"tags":[],"class_list":["post-42837","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-courts-cases"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Bank Julius Baer Agrees to Pay More Than $79 Million for Money Laundering<\/title>\n<meta name=\"description\" content=\"BROOKLYN, NEW YORK Bank Julius Baer &amp; Co. Ltd. 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