{"id":5466,"date":"2017-10-19T16:46:05","date_gmt":"2017-10-19T13:46:05","guid":{"rendered":"http:\/\/anticorr.media\/?p=5466"},"modified":"2017-10-20T17:51:51","modified_gmt":"2017-10-20T14:51:51","slug":"prokurory-brazilii-byvshij-biznes-partner-trampa-organizoval-sxemu-otkatov-na-oi-2016-v-rio","status":"publish","type":"post","link":"https:\/\/anticorr.media\/en\/prokurory-brazilii-byvshij-biznes-partner-trampa-organizoval-sxemu-otkatov-na-oi-2016-v-rio\/","title":{"rendered":"Nuzman and Trump’s former business partner charged with corruption in Rio Olympics case"},"content":{"rendered":"

Former Brazil Olympic Committee Head Faces Charges of Corruption<\/h3>\n

This material belongs to: WSJ<\/a>.<\/p>\n

Prosecutors allege Carlos Nuzman<\/a> was part of vote-buying ring to secure 2016 Games for Rio de Janeiro.<\/strong><\/p>\n

S\u00c3O PAULO\u2014Brazilian prosecutors on Wednesday filed criminal charges against the former head of the country\u2019s Olympic committee for his alleged involvement in a vote-buying ring meant to secure Rio de Janeiro\u2019s bid to host the 2016 Games.<\/strong><\/p>\n

Carlos Nuzman and five others, including S\u00e9rgio Cabral<\/a>, the former governor of Rio de Janeiro, were charged with corruption, conspiracy, money laundering and capital evasion.<\/p>\n

\n

A lawyer for Mr. Nuzman said Wednesday that the former Olympic official denies any wrongdoing. A lawyer for Mr. Cabral, who had been\u00a0sentenced in June to 14 years in prison<\/a>\u00a0on charges related to the country\u2019s Car Wash Probe<\/a>, said the former governor denies wrongdoing.<\/p>\n

The prosecutors allege that Mr.\u00a0Nuzman\u00a0and a former deputy\u00a0brokered the payment of bribes<\/a>\u00a0to undecided International Olympic Committee<\/a> members ahead of a 2009 vote on\u00a0what city would host the 2016 Olympics<\/a>.<\/p>\n

Mr. Nuzman, who presided over the opening ceremony of the 2016 Games, was\u00a0arrested in his Rio home at the beginning of October<\/a>\u00a0and last week resigned from the helm of Brazil\u00b4s Olympic committee<\/a>.<\/p>\n

The charges against him and others in this case still need to be accepted by a judge for them to face trial for those crimes.<\/p>\n

Former Trump Hotel Partner Charged in Brazil Olympic Bribery Case<\/h3>\n

This material belongs to: The New York Times<\/a>.<\/p>\n

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RIO DE JANEIRO \u2014 Federal prosecutors in Brazil on Wednesday charged a Brazilian partner in the former Trump Hotel Rio de Janeiro<\/a> with paying bribes to propel the city\u2019s bid to host the 2016 Olympic Games.<\/strong><\/p>\n

The businessman, Arthur C\u00e9sar de Menezes Soares Filho<\/a>, is a fugitive in the United States, according to Brazilian prosecutors. They expressed frustration over what they characterized as Washington\u2019s reluctance to help in the investigation, contending that American officials did not extradite him, freeze his bank accounts or search his Miami residence as part of an international attempt to bring him to justice.<\/p>\n

The\u00a0157-page criminal complaint<\/a>\u00a0made public on Wednesday charts what prosecutors called a \u201cwin-win\u201d kickback scheme masterminded by a powerful trio: the former Rio de Janeiro governor, S\u00e9rgio Cabral; the recently-ousted head of Brazil\u2019s Olympic Committee, Carlos Arthur Nuzman; and Mr. Soares, who ran several companies that were awarded multimillion government contracts.<\/p>\n

The complaint does not suggest that anyone in the Trump Organization<\/a> was involved in, or aware of, the kickback scheme. The Trump Organization\u00a0pulled out of the project\u00a0<\/a>last December, soon after the hotel came under scrutiny in\u00a0a separate criminal investigation<\/a>\u00a0involving investments by public pension fund managers.<\/p>\n

The Trump Organization on Wednesday declined to comment on the record to questions submitted by email about its relationship with Mr. Soares and whether it had been contacted by investigators.<\/p>\n<\/div>\n<\/div>\n

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According to the charging document in the Olympic bribery case, Mr. Soares, a longtime associate of the former Rio governor, was the source of at least $2 million in bribes paid to Lamine Diack<\/a>, the former president of the International Association of Athletics Federations<\/a> who had a vote in the selection of the 2016 Summer Games.<\/p>\n

Mr. Diack and his son, Papa Massata Diack<\/a> \u2014 who is accused of acting as the conduit for the bribes \u2014 are also defendants in the case unveiled on Wednesday.<\/p>\n

Prosecutors in Rio de Janeiro say there is much they still don\u2019t know about the scope of the bribery scheme, including whether other people who had a vote in Rio\u2019s selection received bribes.<\/p>\n

But they expressed disappointment that Mr. Soares, who owns a luxurious seaside villa in Miami, remains at large. They said American law enforcement officials dragged their feet on Brazil\u2019s request to freeze his bank accounts and search his home on Sept. 5, when the investigation, known as Operation Unfair Play<\/a>, was publicly disclosed.<\/p>\n

That morning, shortly after dawn,\u00a0investigators in Brazil served search warrants<\/a>\u00a0at Mr. Nuzman\u2019s home and at the Olympic committee office in Rio. Simultaneously, French investigators served a search warrant at a Paris apartment that belongs to Mr. Soares.<\/p>\n

Brazilian and French investigators had been working jointly since March. Prosecutors in Rio de Janeiro had already been looking into Mr. Soares\u2019s businesses as part of corruption inquiries into the Cabral governorship. Mr. Cabral was\u00a0sentenced to 45 years\u00a0<\/a>in prison last month in a separate corruption case.<\/p>\n

Mr. Nuzman, the former head of Brazil\u2019s Olympic Committee, has denied wrongdoing. Efforts to reach Mr. Soares in Miami in recent days have been unsuccessful.<\/p>\n

The possibility that Rio\u2019s selection to host the Games was tainted by bribery made the case a priority for prosecutors in Brazil, who are juggling dozens of high-profile graft cases involving prominent politicians and businessmen.<\/p>\n

\u201cIt was an international case and we assumed the whole world would have an interest in it,\u201d Eduardo El Hage<\/a>, the lead prosecutor in the Rio de Janeiro federal anticorruption task force, said in an interview.<\/p>\n

\"\"
Carlos Nuzman, the president of the Brazilian Olympic Committee, was escorted by federal police officers after being taken into custody at his home, in Rio de Janeiro on Oct. 5. Source: Silvia Izquierdo\/Associated Press.<\/figcaption><\/figure>\n

In mid-August, Brazilian prosecutors sent the Justice Department a request for Mr. Soares\u2019s extradition in a 25-page affidavit that laid out their case against him. At the time, Mr. Soares was the subject of a provisional detention order, but had not been formally charged. The affidavit, which was marked \u201cclassified,\u201d noted that Brazil intended to serve other arrest warrants in the case on Sept. 5.<\/p>\n

Brazilian officials said they were hopeful that the authorities in the United States would get involved. After all, Chicago was one of the cities that Rio edged out in the competition to host the Games. The American city\u2019s bid had been championed by President Barack Obama<\/a> and Oprah Winfrey<\/a>, both of whom\u00a0traveled to Copenhagen<\/a>\u00a0on the eve of the announcement, hoping to sway committee members.<\/p>\n

Yet, Brazilian prosecutors said they felt stonewalled by the Americans after they suggested that United States authorities freeze Mr. Soares\u2019s bank accounts and execute a search warrant on his residence in coordination with the other raids on Sept. 5.<\/p>\n

\u201cIt was frustrating,\u201d said Vladimir Aras<\/a>, a senior Brazilian prosecutor who until recently served as the head of international cooperation at the attorney general\u2019s office in Bras\u00edlia<\/a>. \u201cIt would have been more fruitful for the collection of evidence if we had counted with the cooperation of the United States.\u201d<\/p>\n

Brazilian prosecutors say they fear that Mr. Soares may have shielded his assets, and potentially gone into hiding, in recent days. They consider him a flight risk because Mr. Soares had been seeking to obtain Uruguayan and Portuguese citizenship, possibly in an effort to dodge extradition.<\/p>\n

The first official response that Brazil received from the United States government was delivered on Sept. 5 in a four-page diplomatic note submitted by the State Department.<\/p>\n

The note said that Brazil\u2019s request had failed to meet the evidentiary standard for extradition. It questioned the strength of some of the evidence that the Brazilians had submitted in the affidavit.<\/p>\n

The Justice Department declined to comment on the specifics of the case.<\/p>\n

\u201cThe United States is not a safe haven for fugitives from any nation,\u201d Wyn Hornbuckle<\/a>, a spokesman, said Wednesday. \u201cWe value our strong law enforcement relationship with Brazil. As a matter of policy, the department does not comment on specific extradition processes, but we are committed to working together on these matters.\u201d<\/p>\n

While the United States has a long history of law enforcement cooperation with countries like Brazil, tensions can arise when nations are pursuing parallel investigations with overlapping targets. Mr. Soares\u2019s residence in South Florida, and his history of real estate transactions in the United States, could offer American prosecutors a hook by which to bring their own criminal case.<\/p>\n

In the United States\u2019 corruption case focused on FIFA<\/a> \u2014 soccer\u2019s global governing body, with headquarters in Switzerland \u2014 Brazil has been among the numerous countries that provided substantial help to the United States. But there have been behind-the-scenes tensions<\/a>, with some countries wanting to take the lead on prosecuting their own citizens and bristling at the idea of being eclipsed by the United States in high-profile cases.<\/p>\n

Brazilian prosecutors say the Olympic committee in Brazil paid the former Trump hotel 3.8 million Brazilian Reais \u2014 an amount currently worth roughly $1.2 million \u2014 for the use of hotel rooms during the Games. The hotel carried the Trump name, and the Trump Organization managed the property. But it did not have an equity stake in the hotel.<\/p>\n

The 13-floor, 171-room hotel was the first Trump Hotel in South America. In\u00a0a 2014\u00a0<\/a>news release<\/a>, President Trump\u2019s eldest son, Donald Trump Jr.<\/a>, an executive vice president of the Trump Organization, hailed the location in the upscale Barra de Tijucaas<\/a> as \u201cthe perfect mix of modernity and nature,\u201d saying it was \u201cpoised to emerge as the heart of Rio de Janeiro.\u201d<\/p>\n

By the time the Games began in early August 2016, the hotel, beset by construction delays, could not deliver the number of rooms it was contractually obligated to make available for Olympic visitors. Under the contract, this should have made the hotel subject to a penalty. Yet, prosecutors say, the hotel was not penalized and got a 30 percent discount in the amount of money it returned to the Olympic Committee for failing to make the rooms ready on time.<\/p>\n

That leniency, prosecutors say, was emblematic of a \u201cgrand accord\u201d by the defendants to turn Olympics-related spending into opportunities for personal gain.<\/p>\n

In the charging document, prosecutors refer to Mr. Soares as a partner in the hotel. In a statement issued on Wednesday, the hotel, now called\u00a0LSH Barra Hotel<\/a>, sought to minimize his role in the venture. It said he never had a formal role in the hotel and characterized him as a relatively minor stakeholder in the investment fund that bankrolled the project.<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Former Brazil Olympic Committee Head Faces Charges of Corruption This material belongs to: WSJ. Prosecutors allege Carlos Nuzman was part of vote-buying ring to secure 2016 Games for Rio de Janeiro. S\u00c3O PAULO\u2014Brazilian prosecutors on Wednesday filed criminal charges against the former head of the country\u2019s Olympic committee for his alleged involvement in a vote-buying 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