A U.S. appeals court has reinstated the convictions of Hernan Lopez, a former 21st Century Fox executive, and Full Play Group, an Argentine sports marketing firm, in connection to the FIFA corruption scandal. The Second Circuit Court of Appeals reversed a previous ruling that had overturned their convictions.
In March 2023, Lopez and Full Play Group SA were found guilty on charges of wire fraud conspiracy and money laundering conspiracy. These charges stemmed from a scheme to bribe South American soccer officials in exchange for lucrative broadcasting rights to tournaments such as the Copa Libertadores. Prosecutors argued that Lopez and other executives paid millions in bribes and kickbacks to top soccer officials, gaining broadcasting rights and insider information on bids for tournaments like the 2018 and 2022 World Cups. Full Play was also convicted of additional counts related to World Cup qualifiers and friendlies, and the Copa America.
Following the 2023 conviction, U.S. District Judge Pamela K. Chen granted a motion for acquittal in September 2023, citing a U.S. Supreme Court decision that she believed raised the bar for bribery prosecutions. Chen wrote that the Supreme Court's decisions meant Lopez's conviction could not be sustained under the honest services fraud statute. However, the appeals court found that the district court had erred in its interpretation of the law. The Second Circuit determined that the conduct of Lopez and Full Play did fall within the scope of the statute, as it involved bribery, which is a core application of the honest services fraud statute. The appellate court noted that the fiduciary duties breached by the bribed officials were established by their relationships with FIFA and CONMEBOL, and these duties were informed by the organizations' codes of ethics.
The appeals court vacated the district court's judgments of acquittal and remanded the case for further proceedings. The circuit judges said it was up to Chen to decide whether to grant a defense motion questioning whether the government's evidence was sufficient to prove a conspiracy to deceive the South American governing body CONMEBOL.
The case is part of a larger investigation by the U.S. Department of Justice into corruption within FIFA and other international soccer organizations. The investigation, which began in 2015, has led to numerous arrests, indictments, and convictions. According to prosecutors, Hernan Lopez, who was the former CEO of Fox International Channels, schemed to bribe officials at the South American soccer federation CONMEBOL to win rights for the Copa Libertadores. Full Play was accused of bribing officials at CONMEBOL and the North American federation CONCACAF to win rights to the Copa Libertadores and World Cup qualifying matches.
Lopez's lawyer, John Gleeson, expressed disappointment with the appeals court ruling and stated that Lopez plans to appeal to the U.S. Supreme Court. Gleeson said Lopez's Supreme Court appeal will focus on the honest services wire fraud law, and defense lawyers "have no doubt that our client will eventually be fully vindicated".
At the original trial, a cooperating witness testified that he paid tens of millions of dollars in bribes with the blessing of Lopez and another Fox executive, Carlos Martinez. Martinez was acquitted on the same charges. Prosecutors presented emails, contracts, and business records that they said revealed a years-long plot by Lopez and Martinez to funnel payments to football officials through sham contracts and consulting agreements.
