FIFA’s Audit and Compliance Committee head, Domenico Scala, said if evidence shows Russia and Qatar bought votes to have the World Cup hosted in their country, ‘the awards could be invalidated.’” This comes on the heels of U.S. federal indictments charging FIFA officials with racketeering, conspiracy, and corruption.
Russia and Qatar are not the subject of those indictments, but evidence may emerge from those proceedings about how they won the privilege of hosting the event.
FIFA’s Audit and Compliance Committee head, Domenico Scala, said if evidence shows Russia and Qatar bought votes to have the World Cup hosted in their country, ‘the awards could be invalidated.’” This comes on the heels of U.S. federal indictments charging FIFA officials with racketeering, conspiracy, and corruption.
Russia and Qatar are not the subject of those indictments, but evidence may emerge from those proceedings about how they won the privilege of hosting the event.
The Justice Department charged fourteen people, including nine current or former FIFA figures and five sports marketing professionals, for allegedly “‘foster[ing] a culture of corruption and greed that created an uneven playing field for the biggest sport in the world,’” FBI Director James Comey said. The government alleged racketeering and corruption involving more than $150 million in bribes and kickbacks spanning two decades.
“The investigation grew out of allegations of payoffs to officials who decided where to hold the next two World Cups, the biggest international event in sports, that landed the games in Russia for 2018 and Qatar in 2022, according to three senior U.S. law enforcement officials. The U.S. was runner-up to Qatar’s win.”
FIFA appears to be relieved with the indictments. In a statement posted on its website, it said it “welcomes actions that can help contribute to rooting out any wrongdoing in football.” FIFA further said, “We are pleased to see that the investigation is being energetically pursued for the good of football and believe that it will help reinforce measures that FIFA has already taken.”
The Clinton Foundation is under scrutiny for accepting money from FIFA and Qatar. “In 2014, the Qatar 2022 Supreme Committee, set up by the Qatar government to ensure a successful FIFA world cup, awarded the Clinton Foundation between $250,000 and $500,000; the State of Qatar donated between $1 million and $5 million.” According to the Clinton Foundation website, the money was for “research and development for sustainable infrastructure at the 2022 FIFA World Cup to improve food security in Qatar, the Middle East, and other arid and water-stressed regions throughout the world.”
FIFA’s Audit and Compliance Committee head, Domenico Scala, said if evidence shows Russia and Qatar bought votes to have the World Cup hosted in their country, ‘the awards could be invalidated.’” This comes on the heels of U.S. federal indictments charging FIFA officials with racketeering, conspiracy, and corruption.
Russia and Qatar are not the subject of those indictments, but evidence may emerge from those proceedings about how they won the privilege of hosting the event.
Posted by Randy Gomez.
In Business Law class, I learned about business ethics and how an entity should behave as a good citizen. In this article that I found online, it explains how the Federal Communications Commission fined AT&T 100 million dollars for slowing down data speeds to some customers. According to the FCC, AT&T violated a transparency rule by misleading customers saying that their plans were unlimited, when there was a maximum speed that customers would receive. AT&T is accused of not sufficiently informing its subscribers. The FCC chairman Tom Wheeler said “consumers deserve to get what they paid for,” and that, “[b]roadband providers must be upfront and transparent about the services they provide.”
It seems that the corporation was trying to maximize their short-term profits, by not being clear enough about the services provided to the consumer. As it usually happens when a corporation acts unethically to increase their profits, AT&T hurt their profits and now is receiving bad publicity. This is a great example of why companies have to take in consideration moral and ethical principles toward their decisions, instead of just trying to maximize profits.
Randy is a business administration major with a concentration in finance at Montclair State University, Class of 2017.
Posted by Connie Huang.
According to Merriam Webster dictionary, fraud is “the crime of using dishonest methods to take something valuable from another person; a person who pretends to be what he or she is not in order to trick people; [or] a copy of something that is meant to look like the real thing in order to trick people.” Therefore, a person who pretends to be something they’re not in order to trick people and using dishonest ways to take something valuable from someone is fraud.
A former general counsel of a law firm in South Florida was sentenced to 18 months in federal prison. He was sentenced to federal prison because he helped a managing partner “swindle investors by selling them ‘income’ from faked settlements.” He will probably be testifying against other defendants.
According to the article, defendant’s attorney argued that his client “had been punished enough by losing his New York law license and his home and declaring bankruptcy.” I agree that defendant has been punished enough, because losing one’s ability to work and make money (a law license) and maintain a house is hard on his life as it is. That is a lot to lose. The defendant apologized in court to his family members, which I believe is a rightful thing to do. He has declared he has been guilty to charges relating to wire fraud.
“Former General Counsel of Notorious Rothstein Law Firm Gets 18 Months for Fraud.” ABA Journal. N.p., n.d. Web. 14 Feb. 2015.
Connie is an international business major at Montclair State University, Class of 2017.
Posted by Enerd Pani.
During the beginning of October, there was a vast change where control of the internet source code was transported from the United States, to what most likely will be the United Nations. The result is that countries not only in Europe, but all over the world can vie for control of the internet. Arguably unscrupulous countries such as Russia, China and Iran can cause issues with human rights violations and can censor areas of the internet in other countries, not only within their own home country. The second issue is that the President did not ask Congress for approval to give a piece of U.S property to overseas forces. The following action has been criticized as going against US interests, and mitigating any form of American supremacy.
Still, some people see this as a necessary step. The National Telecommunications and Information Administration believes the chance of government intrusion to be “extremely remote” (BBC). The issue arises when multiple shareholders with many different ideas on how the internet should be maintained all vie for control of singular entity. These “stakeholders include countries, businesses and groups offering technological expertise” (BBC). One might wonder how such a important function can be put within the control of so many groups with different interests. There has even been calls by Russia and China for the Domain Naming Server to be put under the control “by the United Nations’ International Telecommunication Union” (BBC). The request put forward shows the desires countries with very shady human rights have towards getting control of such a important tool for free speech.
Many groups had argued that a delay on the acquisition should have been placed. The critics of the movement “argue that once the transition takes place it is irreversible, and that it would be prudent to temporarily maintain existing U.S. government authority” (fas 18). It would seem very controversial to transfer over such a valuable asset when there may not be any chance to change a decision. Also questions arise on how the “.mil” and “.gov” domains should be handled. These domains are sole property of the U.S Government, and cannot be used in any other way.
To conclude, the “giveaway” of ICANN is one shrouded in uncertainty. No one can be sure if the new stakeholders of the internet will continue to monitor it ethically. There has been major concern about some countries abusing the power of internet control, but many companies like the NTIA assure that they are looking to “protect U.S consumers, companies, and intellectual properties” (fas 12). It can be argued that ICANN was transferred unethically, though now the deed is done. The future will tell if this move will either effect, or mitigate personal freedoms on the internet.
Enerd is a finance major at the Stillman School of Business, Seton Hall University, Class of 2019.
Sources:
https://www.fas.org/sgp/crs/misc/R44022.pdf
http://www.bbc.com/news/technology-37114313
FIFA’s Audit and Compliance Committee head, Domenico Scala, said if evidence shows Russia and Qatar bought votes to have the World Cup hosted in their country, ‘the awards could be invalidated.’” This comes on the heels of U.S. federal indictments charging FIFA officials with racketeering, conspiracy, and corruption.
Russia and Qatar are not the subject of those indictments, but evidence may emerge from those proceedings about how they won the privilege of hosting the event.
The Justice Department charged fourteen people, including nine current or former FIFA figures and five sports marketing professionals, for allegedly “‘foster[ing] a culture of corruption and greed that created an uneven playing field for the biggest sport in the world,’” FBI Director James Comey said. The government alleged racketeering and corruption involving more than $150 million in bribes and kickbacks spanning two decades.
“The investigation grew out of allegations of payoffs to officials who decided where to hold the next two World Cups, the biggest international event in sports, that landed the games in Russia for 2018 and Qatar in 2022, according to three senior U.S. law enforcement officials. The U.S. was runner-up to Qatar’s win.”
FIFA appears to be relieved with the indictments. In a statement posted on its website, it said it “welcomes actions that can help contribute to rooting out any wrongdoing in football.” FIFA further said, “We are pleased to see that the investigation is being energetically pursued for the good of football and believe that it will help reinforce measures that FIFA has already taken.”
The Clinton Foundation is under scrutiny for accepting money from FIFA and Qatar. “In 2014, the Qatar 2022 Supreme Committee, set up by the Qatar government to ensure a successful FIFA world cup, awarded the Clinton Foundation between $250,000 and $500,000; the State of Qatar donated between $1 million and $5 million.” According to the Clinton Foundation website, the money was for “research and development for sustainable infrastructure at the 2022 FIFA World Cup to improve food security in Qatar, the Middle East, and other arid and water-stressed regions throughout the world.”
Posted by Tiffany Zapata.
Sergei Pugachyov former banker, senator, and confidante to Valdimir Putin is now speaking out on his placement on Interpol’s most wanted list. According to Pugachov, he made the list because of a campaign created by elite Russian politicians against him. He is currently facing charges in Russia and the UK due to the 2010 collapse of the International Industrial Bank.
Pugachyov commented on Interpol’s activity, stating “Interpol’s involvement is illegal and he’ll explore ‘all avenues’ to fight to get his name removed.” He was listed on the international law enforcement agency’s roster and is being charged with counts of embezzlement, according to Interpol.
In attempts to prove his innocence, Pugachyov is trying to bring light to the situation and call-out Russian politicians. He stated: “The involvement of Interpol by the Russian authorities is an attempt to give credibility to the actions of high-level Russian officials involved in the expropriation, including direct orders of President Putin and a number of Russian cabinet ministers.”
He was subject to a red notice by Interpol but was able to cancel it by challenging it in court. He is determined and says he will do anything in his power to cancel the second notice as well.
Pugachyov was once known as one of the richest men in Russia. He now lives a bare life, stripped of all his assets and politically targeted in Russia due to the collapse of the bank in 2010. With the history of Russian governments, we can speculate this will not end well for Pugachyov.
Tiffany is a business administration major with a concentration in international business at Montclair State University, Class of 2016.
Posted by Connie Huang.
HSBC is a bank with locations in Europe. Two branches raided on or about February 18, 2015 by Swiss authorities are located in Geneva. They raided the banks, because the banks are accused of money laundering.
Money laundering is “a financial transaction scheme that aims to conceal the identity, source, and destination of illicitly-obtained money.” The bank’s Swiss arm was aiding their clients in hiding $100 billion in Swiss accounts, as reported by the International Consortium of Investigative Journalists (ICIJ). This allowed let them evade taxes.
According to the article, the bank told their clients that it would not divulge to national authorities details of accounts. HSBC talked about “moves that [would] ‘ultimately allow clients to avoid paying taxes in their home countries.’” As said by the ICIJ, HSBC has served clients like Hosni Mubarak, former Egyptian President, the current ruler of Syria Bashar al-Assad, and Ben Ali, the former Tunisian President.
“HSBC Switzerland Offices Raided over Money Laundering Allegations – Feb. 18, 2015.” CNNMoney. N.p., n.d. Web. 22 Feb. 2015.
Connie is an international business major at Montclair State University, Class of 2017.
The regulatory process and its role in the legal system is a fundamental concept in business law. Federal, state and local governments received the authority to regulate activities from Article 1 Section 8 of the U.S. Constitution. Article 1 Section 8 also referred to as the Commerce Clause or Necessary and Proper Clause dictates the enumerated powers of Congress in professional and private settings.
The regulatory process is performed by administrative agencies. Some commonly recognized administrative agencies are the Central Intelligence Agency (CIA), the Environmental Protection Agency (EPA), and the Food and Drug Administration (FDA). The recent GlaxoSmithKline bribery scandal focused on the Securities and Exchange Commission (SEC) administrative agency. The mission of the SEC is to “protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.” (Securities Exchange Commission)
The SEC recently alleged that GlaxoSmithKline’s Chinese subsidiary had engaged in bribery activity for four years, 2010 to 2013. The SEC accused GlaxoSmithKline subsidiary of violating the Foreign Corrupt Practices Act. According to the SEC, GlaxoSmithKline’s subsidiary had been providing foreign officials and health-care professionals with gifts incongruous to the law. These gifts included shopping trips, cash, travel, entertainment, etc. for the purpose of boosting sales. Further, the SEC suspected that GlaxoSmithKline’s subsidiary deceptively recorded these payments as expenses. The bribery scandal investigation eventually captured the attention of a second agency, the U.S. Department of Justice.
GlaxoSmithKline has not admitted nor denied these bribery charges, but has agreed to pay $20 million to settle the matter. Nonetheless, this is not GlaxoSmithKline’s first bribery settlement. In 2014, the company paid $491.5 million and several managers were convicted with charges and suspended imprisonment for a similar matter. Since the 2014 bribery controversy, GlaxoSmithKline stated it “installed several reforms, including shifts to the compensation of sales representatives and the end of payments to health-care practitioners for advocating for Glaxo products to other prescribers.” (Minaya)
My opinion on the matter is that GlaxoSmithKline was rightfully accused by the SEC and DOJ, specifically for violating the Foreign Corrupt Practices Act. The Act has a firm anti-bribery provision that GlaxoSmithKline and its Chinese subsidiary had a legal and ethical responsibility to follow. The fact that GlaxoSmithKline and its subsidiary’s records were not a true representation of its payments is a clear piece of evidence suspecting its violation. In addition, having read the SEC order and learned that GlaxoSmithKline had engaged in this activity before, I believe that the company and the subsidiary did participate in bribery.
Melissa is a marketing major with dual minors in public relations and legal studies at the Stillman School of Business, Seton Hall University, Class of 2019.
Posted by Abier Mustafa.
Stryker Corp., a device maker company, recalled its Rejuvenate and ABG II hip implant devices in July 2012 after warning surgeons they could harm tissue around the hip and cause other health problems to its patients. Patients have complained of severe pain, unusual swelling and excessive metal debris in their blood, blaming all these symptoms on the Stryker devices. There are at least 1,800 cases Stryker consolidated before U.S. District Judge Donovan Frank in St. Paul, Minnesota. After facing more than 4,000 suits consolidated in the New Jersey state court and federal court in Minnesota alone, Stryker will pay a base amount of $300,000 per patient’s case. This settlement to patients who had the devices surgically removed prior to November 3rd.
Stryker Corp. has reported more than $9 billion in revenue in 2013 on the advertisement of their hip implants lasting for years. After the devices failed patients within a short amount of time, the company has now agreed to pay more than $1 billion to resolve these lawsuits. However, “the company said that it set aside more than $1.4 billion to cover costs of handling cases over the recalled hips so the settlement fell into the “‘low end of the range of probable loss.’” “This settlement program provides patients compensation in a fair, timely and efficient manner,” Bill Huffnagle, a spokesman for Kalamazoo, Michigan-based Stryker, said in an e-mailed statement. A source also reveals that a majority of the payments will be made by the end of 2015.
Abier is a finance major at Montclair State University, Class of 2016.
Posted by Abier Mustafa.
Stryker Corp., a device maker company, recalled its Rejuvenate and ABG II hip implant devices in July 2012 after warning surgeons they could harm tissue around the hip and cause other health problems to its patients. Patients have complained of severe pain, unusual swelling and excessive metal debris in their blood, blaming all these symptoms on the Stryker devices. There are at least 1,800 cases Stryker consolidated before U.S. District Judge Donovan Frank in St. Paul, Minnesota. After facing more than 4,000 suits consolidated in the New Jersey state court and federal court in Minnesota alone, Stryker will pay a base amount of $300,000 per patient’s case. This settlement to patients who had the devices surgically removed prior to November 3rd.
Stryker Corp. has reported more than $9 billion in revenue in 2013 on the advertisement of their hip implants lasting for years. After the devices failed patients within a short amount of time, the company has now agreed to pay more than $1 billion to resolve these lawsuits. However, “the company said that it set aside more than $1.4 billion to cover costs of handling cases over the recalled hips so the settlement fell into the “‘low end of the range of probable loss.’” “This settlement program provides patients compensation in a fair, timely and efficient manner,” Bill Huffnagle, a spokesman for Kalamazoo, Michigan-based Stryker, said in an e-mailed statement. A source also reveals that a majority of the payments will be made by the end of 2015.
Abier is a finance major at Montclair State University, Class of 2016.
