Match-fixing scandals are not a new occurrence in sports; football, Tennis, and many other sports have had to deal with match-fixing scandals in recent years. Even snooker, a sport much like Billiards popular in the UK and China, has fallen victim to corruption. According to an article on the BBC, ten Chinese players based in Sheffield, England, the city hosting the Snooker World Championships, were in financial difficulties last year. As a result, they resorted to manipulating the outcome of matches they played in return for money. The scandal was blown wide open by snooker’s governing body, the World Professional Billiards and Snooker Association (WPBSA), being alerted to suspicious betting patterns and whistleblowers from inside the game. This incident shows that no matter how big or small the sport is, match-fixing is always a threat to the integrity of the game.
Former Head of China Bank Arrested on Corruption Charges.
Today, China arrested the former head of one of its largest commercial banks, Liu Liange. According to the BBC, Liu is accused of illegally granting loans, bringing banned publications into China, and accepting bribes. Liu was expelled from the communist party after this accusation came to light. According to Barrons, President Xi has been embarking on a wide-sweeping campaign to eradicate corruption from the Communist Party. One must assume that Liu probably won’t see the light of day soon.
The Ongoing Misadventures of George Santos.
Last December, The New York Times reported on a newly elected republican member of the House of Representatives from Long Island named George Santos. At first, it looked as if Santos would be a breath of fresh air to the Republican party; he was part Brazilian and was in a same-sex relationship, two factors that might bring in new voters outside the traditional republican base of mostly white voters. However, it was apparent Santos was not all he seemed. According to an article from The Washington Post, Santos, on his campaign website, claimed he went to New York University and worked at Goldman Sachs. However, journalists digging into his background found that neither institution had any record of Santos having worked at Goldman or attended NYU. Santos also found himself in a spot of bother with the Brazilian authorities; according to The Post, Santos allegedly stole a checkbook and then used it fraudulently. The Brazilian police couldn’t catch him but were alerted to his whereabouts once he was elected.
As time passed, more allegations about Santos began to emerge. In February of this year, an article in Politico stated that Santos set up a GoFundMe for a veteran named Richard Osthoff, whose service dog needed surgery that would cost $3,000. After helping raise the 3K, Osthoff alleges that Santos closed down the GoFundMe and made off with the money. Then, in May of this year, Santos was charged by the federal government with 13 counts of wire fraud, money laundering, stealing public funds, and lying on public disclosure forms. On Tuesday, it was revealed by the New York Times that Santos is facing further counts of wire fraud, aggravated identity theft, access device fraud, and making false statements to the Federal Election Commission, as well as possibly obstructing the FEC’s investigation. Who knows how this plays out, but I have a feeling that George may have some serious explaining to do with the feds.
Old Tensions Between Kosovo and Serbia Flare up.
In recent weeks, long-held tensions between Serbia and Kosovo have simmered to the surface. Kosovo is an ethnically divided country between Albanians and Serbians. Despite independence and vocal support from the West, there is always a fear of Serbia trying to reclaim what it sees as its rightful territory. According to an article in CNBC, there has been violence on Kosovo’s northern border with Serbia, not to mention Serbian military units amassed on the border. In late September, there was a shootout between Kosovar police and heavily armed Serbs. One of the major sticking points is that, according to the AP, The Serbian population in the North of Kosovo, particularly in the city of Mitrovica, feels the government in Pristina is not representing them. Earlier this year, the Serbian population in the north boycotted local elections, allowing ethnic Albanians to claim most of the mayoral positions, further alienating the Serbs. While the rest of Europe focuses on Russia and Ukraine, the situation in Kosovo should warrant closer examination by Western leaders.
777 Partners, Everton and the Murky World of Multi-Club Ownership in Football.
In recent weeks, Everton Football Club, based in Liverpool, England, is being taken over by an American investment firm called 777 Partners. 777 has a murky history and was at the center of a Washington Post article detailing its exploitative business practices that are not dissimilar to payday loans with extremely high-interest rates. 777 also has been buying up football clubs from around the world rapidly. The head of 777, Josh Wander, also has a colorful history; according to the Post article, in his student days, he was charged with drug trafficking after allegedly opening a package containing cocaine that the federal government was tracking. He pleaded no contest and avoided prison time but was sentenced to 14 years on probation, but surely that will be a black mark against the Premier League’s recently beefed up Owners and Directors Test has any teeth to it. One has to feel for longtime Everton supporters who have had to deal with their club struggling both on and off the pitch and could be taken over by a charlatan.
The backdrop to 777 & Everton is the growth of multi-club ownership in football, where one person, or usually an investment group, buys into several clubs worldwide. There are numerous examples, the most famous of which is the City Football Group (CFG), who owns Manchester City and clubs in Australia, the U.S., and elsewhere. According to an article in ESPN, one of the main benefits of owning several clubs is that if one club gets relegated, the financial impact won’t be as profound if the others in the network are performing strongly. Another reason that multi-club ownership is widespread is because it allows big clubs to loan out young players to smaller clubs within their network. However, there are also numerous downsides, and chief among them is a loss of identity and a corporatization of the football ecosystem, particularly in Europe. In my view, the multi-club models are bad for the future of sport because they whittle clubs down to investments and not what clubs should represent; they should represent civic pride and, most importantly, the values of their supporters.
SBF Colleague Admits Fraud.
Yesterday in the trial of Sam Bankman-Fried, Gary Wang, the co-founder of FTX, admitted that SBF had directed him to commit financial crimes. According to an article in The San Jose Mercury, Wang’s testimony will detail the acts of fraud both he and SBF committed while running FTX. Wang stated that he committed wire, securities, and commodities fraud at FTX while having a stake in Alameda Research, the hedge fund that SBF’s girlfriend ran. According to a report in US News, Wang is the first of a trio of former high-ranking executives that will testify against SBF. The trial continues.
The Failure of the healthcare system in Ohio.
In Today’s Washington Post is a lengthy article on the fall of life expectancy in Ashtabula County in Ohio (A place I visited earlier this year). At its heart, this story is not about corruption but political neglect in middle America. Republican governors in states like Ohio since the 1980s have decided that it is not worth putting money into improving state healthcare systems. As a result, life expectancy has plummeted in places like Ashtabula, with Ohioans having life expectancy akin to those in nations like Slovakia and Ecuador. This is mainly due to high rates of smoking-related diseases such as Lung Cancer and alcoholism. This sad state of affairs has no signs of abating as long as Republicans continue to hold on to the levers of power in states like Ohio.
(Disclaimer: the article I reference in this piece is behind a paywall.)
Bankman-Fried’s Fraud Trial Gets Underway.
The trial of disgraced former FTX CEO Sam Bankman-Fried started today in New York City. SBF is accused of fraud and conspiracy to commit fraud. According to a report by CNN, prosecutors claim that SBF stole billions of dollars in customer deposits at FTX to cover enormous losses at Alameda Research, a crypto-driven hedge fund run by his then-girlfriend Caroline Ellison, who pleaded guilty to similar offenses in December of last year. Before its infamous collapse, FTX had developed a well-known reputation by featuring celebrity endorsers such as Tom Brady in Super Bowl commercials. According to an article in Politico, SBF’s trial could have significant ramifications on future legislation regarding the regulation of the industry. Michael Lewis will be smiling somewhere as his book on SBF comes out today; nothing beats a bit of free publicity.
The Fraud Trial of Trump Begins.
The civil fraud trial of Donald Trump began today in New York. This trial centers on allegations that Trump inflated the value of his assets in New York, such as Trump Tower. This is a civil trial, meaning that Trump will not be jailed if found guilty. According to an article by PBS, the New York state Attorney General Letitia James lawsuit claims that Trump purposefully lied to banks and insurance companies about the actual value of real estate and golf course holdings in New York. An article by The New York Times states that there are several New York-based properties that Trump could lose control over if he is guilty, namely Trump Tower, as well as several hotels and golf courses. It is unclear how long this trial will last, but a guilty verdict would only increase the legal pressure on Trump during the run-up to the Republican primaries.
Senator Menendez Accused of Bribery, Corruption.
Democratic Senator Robert Menedez of New Jersey was indicted on bribery charges today. According to an article in The New York Times, Menendez, the chairman of the Senate Foreign Relations Committee, is alleged to have used his considerable influence to pass on classified U.S. government documents to contacts in the Egyptian Government. Menendez also attempted to influence the trials of two New Jersey businesspeople. According to a report in the Washington Post, Menendez tried to pressure the Biden administration to nominate as New Jersey Attorney General, a man he thought would be able to stop a federal fraud trial involving a businessman friend of Menendez. This is not the first time allegations of corruption have swirled around Menendez; he faced bribery allegations in 2017, but it ended in a hung jury, so he escaped prison. This time that might be more difficult because investigators found $500,000 in cash and gold bars at his house and have pictures of said items, which will take some explaining from Menendez.
Crispin Corruption Report 