Sunday 05 June 2011

http://www.insidecostarica.com/dailynews/2011/june/05/costarica11060502.htm

The arrest in recent months of two leaders of national futbol (soccer) associations for alleged fraud and money laundering, is leading judicial and government authorities to believe that dirty money "has entered the futbol, where in recent years have increased cash revenues, transfers and investment in stadiums moving to synthetic courts.

The most recent case is the detention of Carlos Pascall, president and majority shareholder of the FC Limón, last week, who is suspected of receiving more than us$30 million dollars from a brother who is serving a 10 year sentence for weapons possession in the United States.

According to Costa Rican authorities, the money is alleged to come from tax evasion by a tobacco company in the U.S.

Pascall was arrested on Thursday following a raid on his home, the futbol club and several businesses owned by Pascall and facing a 15 year sentence if found guilty. For now Pascall is in a Limón jail on a 6 month detention order while the investigation continues.

Pascall remodeled the dilapidated and deteriorated Juan Goban stadium, the province of Limón, installing a synthetic field and thus bringing back the Caribbean fans, who were filled with illusion and won their affection for open sources of employment in an area characterized by few opportunities.

Costa Rican teams, with the exception of the 'big' Saprissa and Alajuelense, are generally poor and unlikely to reach budget for maintenance of a large stadium and let alone a face lift.

The Pascall example may have its roots to the fever for buying franchises that broke out with the purchase of the Brujas and the Barrio Mexico's first division team by Minor Vargas.

Vargas took to the task of remodellng stadiums, installing several synthetic fields in the country and gave financial assistance to several other teams in the second division.

The origin of the Vargas funds, according to press statements, was from foreign investor acquaintances, who were interested in the development of national sports.

However, earlier this year the real source of the Vargas funds was uncovered with his arrest in January in the United States on suspicion of insurance fraud in the amount of us$670 million dollars. Costa Rican authorities quickly moved on the chance to concrete their suspicions of the real origin of the funds.

Since the Vargas arrest, the Brujas FC has fallen into financial crisis, not having a financing source, as well as the Barrio Mexico team which was expelled from the first division in March for various legal problems and debts.

These issues have caused concern in the judiciary and even in that of Costa Rica's presidenta, Laura Chinchilla, who expressed publicly her concern about using sports clubs for illegal activities.

"Not all spots clubs are involved in illegal activity, but there is a clear sign that some are involved in money laundering", said Chinchilla in reference to the Pascall arrest.

Chinchilla added, "I am not surprised" that soccer clubs are being used for alleged criminal activities, "as is on other occasions and as in other parts of the world".

"It is a government priority (the fight against organized crime) and we will be driving before whom we have to take, regardless of who is", said the presidenta.

For its part, the Unión Nacional de Fútbol (Unafut) - National Football Union - organized by the League first division teams, in a statement described as "unfortunate" that "a president of one of the affiliated clubs are living that kind of situation ", in referring to Pascall.