World Cup scalping scandal continues in Brazil - KAUZ-TV: Newschannel 6 Now | Wichita Falls, TX

World Cup scalping scandal continues in Brazil

Posted: Updated:
(AP Photo/STR). Ray Whelan, a longstanding director and project manager within the MATCH group, arrives at a police station after been arrested, in Rio de Janeiro, Brazil, Monday, July 7, 2014. (AP Photo/STR). Ray Whelan, a longstanding director and project manager within the MATCH group, arrives at a police station after been arrested, in Rio de Janeiro, Brazil, Monday, July 7, 2014.
  • NationalMore>>

  • Hospitalized Nazi guard suspect, 89, gets bail

    Hospitalized Nazi guard suspect, 89, gets bail

    Tuesday, July 22 2014 3:32 PM EDT2014-07-22 19:32:47 GMT
    An 89-year-old Nazi war crimes suspect who was jailed while awaiting extradition to Germany has been granted bail after being hospitalized.
    An 89-year-old Nazi war crimes suspect who was jailed while awaiting extradition to Germany has been granted bail after being hospitalized.
  • California firm issues nationwide fruit recall

    California firm issues nationwide fruit recall

    Tuesday, July 22 2014 3:21 PM EDT2014-07-22 19:21:11 GMT
    A Central California company is recalling specific lots of its fresh peaches, plums, nectarines and pluots sold nationwide over concerns of possible listeria contamination.
    A Central California company is recalling specific lots of its fresh peaches, plums, nectarines and pluots sold nationwide over concerns of possible listeria contamination.
  • Man convicted of enslaving woman gets 30 years

    Man convicted of enslaving woman gets 30 years

    Tuesday, July 22 2014 3:10 PM EDT2014-07-22 19:10:57 GMT
    A man accused of enslaving a mentally disabled woman in northeast Ohio is set to be sentenced in federal court in Youngstown.
    An Ohio man convicted along with his girlfriend of enslaving a mentally disabled woman for two years through intimidation, threats and abuse was sentenced Tuesday to 30 years in federal prison.
By GRAHAM DUNBAR
Associated Press

RIO DE JANEIRO (AP) - A World Cup ticket scalping case has revived a reputation FIFA tries hard to fight, and threatens to stain a tournament which has been better than critics expected.

Football's international governing body and its president Sepp Blatter have tried to present a new face in recent years after so many allegations of vote-buying and top officials seeming entitled by seeking favors.

Though many rules and faces have changed at the game's headquarters, a skeptical view that the old culture remains in the inner circle has been fueled by the arrest this week of a director from a longtime World Cup commercial partner.

Released from custody by Rio de Janeiro police early Tuesday, Ray Whelan returned to work within hours at the five-star hotel where Blatter stays and the MATCH group of companies operates during FIFA's showpiece event.

The Copacabana Palace is also where police conducted parts of an undercover operation known as Jules Rimet - named after the former FIFA president who launched the World Cup in 1930.

Whelan, a brother-in-law of MATCH founders Jaime and Enrique Byrom, is suspected of providing tickets to a scalping ring dealing corporate hospitality packages at highly inflated prices. Reselling tickets for profit is illegal in Brazil.

Rights to the $600 million market in World Cup corporate tickets are owned by the MATCH Hospitality subsidiary. Its minority shareholders include a sports agency in Switzerland run by Philippe Blatter, a nephew of the FIFA president.

"MATCH have complete faith that the facts will establish that he (Whelan) has not violated any laws," the company said.

The scalping probe is an embarrassment for FIFA and provoked awkward questions after weeks in which predicted street protests in 12 host cities didn't materialize on mass scale.

FIFA has worked with the Byrom family from Mexico for more than 30 years and awarded contracts to the family's companies since the 1994 World Cup in the United States.

Asked Tuesday if Whelan's accreditation would be revoked, FIFA spokeswoman Delia Fischer said football officials couldn't act before getting a full report from police.

"We need all the proof," Fischer told a news briefing. "We want the matter solved quickly and investigated to its fullest extent."

Whelan was arrested Monday in his luxury suite at the hotel where police said they confiscated 82 tickets for upcoming matches, along with his computer, cellphone and other unspecified documents.

Police have described Whelan as the "facilitator" who allowed a large ring of scalpers to have access to tickets, which they re-sold at vastly inflated prices.

His attorney, Fernando Fernandes, told reporters his arrest was "illegal and absurd."

Whelan, who is based in MATCH's Rio office, will not be allowed to leave Brazil during the tournament. He was detained after the earlier arrests of 11 people, including Algerian national Mohamadou Lamine Fofana.

Police said Whelan was heard on wiretapped phone calls negotiating ticket prices with Fofana, a former player agent whose company is a MATCH Hospitality client.

The MATCH Hospitality subsidiary, which is based in Zurich, paid $120 million for exclusive rights to sell and market more than 400,000 corporate hospitality packages for this World Cup.

In 2011, FIFA extended MATCH Hospitality's exclusive rights through the 2018 and 2022 World Cups without inviting rival bidders.

FIFA hailed that deal - which guaranteed $300 million plus a share of MATCH profits - as one which "further strengthens FIFA's fight against ticket touts."

Trying to distance Whelan from hospitality sales, FIFA and MATCH stressed that Whelan was a director of a subsidiary which has contracts to run accommodation, ticketing and IT services at this World Cup. MATCH Services will also organize hotels for FIFA, media and sponsors at the 2018 World Cup in Russia.

Separately Tuesday, Brazil's federal police said on its website that an Italian and a French citizen, who jointly run a travel agency, were arrested at the international airport in Sao Paulo.

The statement said the two were carrying 48 tickets for the semifinal and final matches - tickets which belonged to "one of the big sponsors" of the World Cup.

___

Associated Press writer Bradley Brooks in Rio de Janeiro contributed to this report

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • InternationalMore>>

  • Plane crash bodies removed from war zone

    Plane crash bodies removed from war zone

    Tuesday, July 22 2014 3:41 PM EDT2014-07-22 19:41:48 GMT
    A train bearing the bodies of the people who died in the Malaysia Airlines crash arrived in the eastern Ukrainian city of Kharkiv on Wednesday on their way to the Netherlands.
    A train bearing the dead from the downed Malaysian airliner reached Ukrainian government-held territory at long last Tuesday, but the pro-Russian separatists in control of the crash site showed little willingness to allow...
  • Gaza rocket lands near Israel's main airport

    Gaza rocket lands near Israel's main airport

    Tuesday, July 22 2014 3:32 PM EDT2014-07-22 19:32:02 GMT
    Israel bombed five mosques, a sports stadium and the home of the late Hamas military chief across the Gaza Strip early Tuesday, a Gaza police official said, as the U.N. chief and the U.S. secretary of state...
    A rocket fired from the Gaza Strip landed near Israel's main airport Tuesday, wounding one Israeli and prompting all U.S. and some European and Canadian airlines to cancel flights to Tel Aviv - a reflection of high...
  • UN chief believes Gaza fighting will end soon

    UN chief believes Gaza fighting will end soon

    Tuesday, July 22 2014 3:20 PM EDT2014-07-22 19:20:50 GMT
    The Palestinian U.N. envoy says a draft U.N. resolution calling for an immediate cease-fire in the Gaza Strip will be formally circulated to the Security Council.
    The U.N. secretary-general said Tuesday it is his "hope and belief" that his emergency mission to the Middle East will lead to an end to the fighting between Hamas and Israel "in the very near future."